03-22-2016, 01:33 PM | #1 |
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Edmunds 340i vs 335i CPO
My lease ends soon on my 535i, and I have been debating between a 340i and a 2013 CPO 335i. The lease quotes I've been getting have been around $120 less per month than my current lease.
Given that BMW is offering lower residuals and higher money factors now, I've also been looking at financing either a 340i or 335i CPO. However, Edmunds suggests there is only a $7000 difference in ownership costs over five years between the two, with $17,000 in repair/maintenance for the CPO. I'm interested in your opinions on that estimate. The CPO would likely decrease some of the out of pocket on the repairs, and I know it depends on the specific car in question and how it's driven and maintained, but if it were likely to cost that much in time and money to keep a CPO in years 3-8 then I would probably stick with a new purchase. |
03-22-2016, 03:34 PM | #2 |
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Hard to believe that you would actually spend $17,000 in repairs/maintenance on the CPO when the first 3 years will be under warranty. Additionally you can purchase an extended maintenance plan @ ~$1800 which extends the maintenance coverage to 3 years as well.
Since most leases are no longer than 3 years, I'd recommend comparing the two scenarios within that time frame. I think the big question to ask is, whether the actual depreciation rate of a CPO F30 is lower than the projected depreciation that you pay for during the lease. For instance, I bought my 2013 328 CPO for 30k + tax+registration+ 3 years of maintenance for a grand total of around 35k. Let's say I own it for 3 years and choose to sell the car. It will be 6 years old at that time, so checking for selling prices of 6 year old E90s, is showing them to be selling for around 15k. Let's be optimistic and assume that in 3 years I could sell my F30 for 17k as it's well optioned, that means I've effectively spent 18k in 3 years to operate the car. This means that the car is depreciating $500/month. To lease a similarly optioned car would cost roughly the same in monthly payments, except the car will be brand new. The CPO won't have a mileage limitation, but the total miles will obviously affect the resale value. I also won't have to bother with selling the car. In CA one big advantage to leasing is you don't pay taxes on the full price of the car when you lease. So even if I was to trade in my CPO after 3 years, I'd still be paying full taxes on whatever I'm purchasing. Despite loving my car, I'm of the opinion that CPOs don't actually cost any less than a lease, and yet they have the disadvantage of being used and no guarantee of actual sale price. Last edited by SoDiezl350; 03-22-2016 at 04:13 PM.. |
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03-22-2016, 03:40 PM | #3 | |
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17,000$ in repair/maintenance for CPO? No man, that's too much, CPO usually comes with an extra 2 years of warranty. So let's say you buy a 2013 335i with a build date of 2013. The free maintenance would go till 2017, and original warranty same date. The CPO extends the warranty till 2019, so you won't have to pay for any repairs. I have a CPO with a build date of 2012, however, it's original warranty and free maintenance ends this summer, but my extended CPO warranty goes till 2018, about a year and a half before my car is entirely paid off. If you were to keep the CPO car till 2019, that's about 3 years starting from this year that you will not have to worry about paying for things breaking, then you can decide to get a new car afterwards. |
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03-22-2016, 04:06 PM | #4 | |
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03-22-2016, 06:19 PM | #5 |
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Thanks for the responses. I am definitely leaning toward a 340i.
How about the lease terms available now? I just double checked my quotes, and they are actually just $100 less per month with a similar drive off compared to my F10. I did get a pre-LCI 535i just before the LCI arrived, so perhaps they were motivated to make a deal back then. Is this likely just the new normal for BMW now? More realistic residuals? |
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03-22-2016, 11:44 PM | #7 |
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Trying to make sense out a lease, cpo, or purchase is like tryng to rationalizing death...
You will be losing (money) no matter which way... You might as well just enjoy the most out of it. The most bang for the buck here is the 340i.
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03-23-2016, 05:58 AM | #8 |
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For me it was tough to find a 335 used. Check out the deals thread for lease info.
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