[jayely1]

Do you guys ever think, Damn my warranty is almost up, I need a new car..Instead of just buying an extended warranty? With every other car I've ever owned it was never that big of a deal if the warranty ended because parts weren't ridiculously expensive. But with this car I always just consider getting a newer 335i. But is that really worth doing? Selling an 07 335i and replacing it with a 2010? Its basically the same car so I could see people just saying keep it and just get the extended warranty. What do you guys think?

[ZoomZoom]

Do you want to spend 50k or 2k???

[jayely1]

You didn't include the price Id sell my car for...

[ABSAUTOBODY]

i rather get a new one

[HTran]

if you can get a new car, i dont see why not. the extended warrenty isnt all that great imo.

[John 070]

Originally Posted by jayely1

You didn't include the price Id sell my car for...

The 22k wholesale is embarassing for a 2k7 48k car. A Honda CR-V or Subaru easily beats that depreciation rate. But, if a person doesn't sell the car and drives it, the trade-in is irrelevant. Personally, trading in a car that was paid-off years ago isn't the brightest move.

[07E92TT]

depending on how reliable your car has been i'd just keep it.

[John 070]

Originally Posted by ZoomZoom

Do you want to spend 50k or 2k???

The bitter pill many Americans don't want to swallow, so they lease and take the expensive way out.

[ENINTY]

I think if you buy a car that you are afraid to own after the warranty period, then you shouldn't buy it in the frist place.

[Aija]

if your buying the same car, then no its definitely not worth it....

Pay the 2k for the warranty and have 5k saved up for the repairs and the car should last you at least 3 years.

[Tom K.]

In the 50,000 miles I owned it after the original warranty, my '99 328i had a total of $1,200 of repairs which would have been covered under the $3,000 extended warranty - had I purchased it.

Since the biggest 335i problem seems to be the HPFP which is already warranted to 120,000 miles, I'd save my money to cover maintenance and any possible repairs and continue to enjoy my car! Of course, when the revised models comes out...

Tom

[I335]

It'll most likely cost you way less in the long run to just keep the car for a few more years. I have another year or so to go before my warranty runs out and I'm planning on keeping the car because I enjoy it so much and it's been reliable enough. I'm on the fence with the extended warranty though - it's just such a gamble. I suppose if I just continue to put my payment money aside after it's paid off for a few months I should have enough to cover pretty much anything that could go wrong short of a major engine or other really expensive component failure. I'm very much against buying more maintenance as I feel I can have a good indy shop do that for far less than an extended maintenance program would cost.

[raleedy]

It's not a simple comparison, especially with leases. BMW mildly subsidizes leases with at least three financial incentives: a low money factor (at least on the E90), a high residual and an extra shot (right now) of cash. One effect of this is that market prices more or less go in the tank between year three and year four. If you have a low-mileage '08, for example, with a retail value of, say, $28K, you could see it lose as much as $6K in the next year, and $4K or so in each of years 5 and 6 — an ownership cost (through depreciation) of as much as $16K. Add repair costs or extended warranty costs to that, and you are spending more than you would for a three-year lease on a new car. Of course, at the end of that lease, you have nothing. But unless you want to continue driving the older car beyond six years, you're still a little bit ahead over keeping the older car. (I'm just going through the decision process on this, even though the current model really has nothing to offer that's better than the '08 car I already have.)

[TheRox]

Originally Posted by John 070

The bitter pill many Americans don't want to swallow, so they lease and take the expensive way out.

May its just the way I was brought up.

But I generally buy the car, run it for 10-12 years or whatever I can get out of it...and junkyard or sell for $50 or whatever.

Get the full value out of the $$ 62 K Canadian (w. taxes).

A 62 K car....would fetch what...after 2 years...maybe 35 K trade in, maybe 30? Thats too much of a hit. Plus being 6MT, you kinda bond with the car, don't get bored of it.

[jayely1]

Originally Posted by raleedy

It's not a simple comparison, especially with leases. BMW mildly subsidizes leases with at least three financial incentives: a low money factor (at least on the E90), a high residual and an extra shot (right now) of cash. One effect of this is that market prices more or less go in the tank between year three and year four. If you have a low-mileage '08, for example, with a retail value of, say, $28K, you could see it lose as much as $6K in the next year, and $4K or so in each of years 5 and 6 — an ownership cost (through depreciation) of as much as $16K. Add repair costs or extended warranty costs to that, and you are spending more than you would for a three-year lease on a new car. Of course, at the end of that lease, you have nothing. But unless you want to continue driving the older car beyond six years, you're still a little bit ahead over keeping the older car. (I'm just going through the decision process on this, even though the current model really has nothing to offer that's better than the '08 car I already have.)

Exactly. I figure if my cars going to depreciate $6k in a year then I might as well sell if before that because I wouldn't be able to save $6k in a year, Im going to college full time and working part time..Im talking about in a year getting a used 2010 I can't even come close to getting a new 335i..

[persian54]

Originally Posted by John 070

The bitter pill many Americans don't want to swallow, so they lease and take the expensive way out.

Depends on the rates really

Sometimes it's cheaper (and thus more financially acceptable) to lease vs buy

like the e93 M3 right now

Your lease payments are that of a 70k car.

But if one plans to keep a car for more than 3 years... then leasing is indeed the 'expensive way out' and not very financially logical...

But, if you plan to keep a car for 2-3 years, it's cheaper to lease.

As mentioned, losing 50% of the car's value in 3 years is pretty harsh..

[John 070]

Originally Posted by persian54

Depends on the rates really

Sometimes it's cheaper (and thus more financially acceptable) to lease vs buy

like the e93 M3 right now

Your lease payments are that of a 70k car.

But if one plans to keep a car for more than 3 years... then leasing is indeed the 'expensive way out' and not very financially logical...

But, if you plan to keep a car for 2-3 years, it's cheaper to lease.

As mentioned, losing 50% of the car's value in 3 years is pretty harsh..

I think the marketers really hit a home run with the lease. People are even leasing Toyotas and even Kias. We have an entire generation who would never even consider public transportation or driving junk, until they saved up enough to buy. And then, the BMW crowd finds justification of switching cars every 1-3 years.

The key word is saving. Both the founder of my wife's co. and CEO are billionaires, and they use that word over and over and over again, well, at least, when they're on CNBC or quoted in Newsweek. Driving a 6 y.o. BMW or 12 y.o. Toyota helps to save $$$, no matter how much the former costs to maintain. Replacing it doesn't defray costs, and really is a wasteful behavioral pattern.

In my co., the founder's son shows up for work every day. He's 84 y.o., and he works by choice. You and me? We'll be working at 84 y.o. out of necessity. Well, at least it's over 50 years from now and I have a BMW in the garage, might as well look at the bright side.

[persian54]

Originally Posted by John 070

I think the marketers really hit a home run with the lease. People are even leasing Toyotas and even Kias. We have an entire generation who would never even consider public transportation or driving junk, until they saved up enough to buy. And then, the BMW crowd finds justification of switching cars every 1-3 years.

The key word is saving. Both the founder of my wife's co. and CEO are billionaires, and they use that word over and over and over again, well, at least, when they're on CNBC or quoted in Newsweek. Driving a 6 y.o. BMW or 12 y.o. Toyota helps to save $$$, no matter how much the former costs to maintain. Replacing it doesn't defray costs, and really is a wasteful behavioral pattern.

In my co., the founder's son shows up for work every day. He's 84 y.o., and he works by choice. You and me? We'll be working at 84 y.o. out of necessity. Well, at least it's over 50 years from now and I have a BMW in the garage, might as well look at the bright side.

To each his own.

But for me, having a car I enjoy and love is more of a hobby and something I use to make myself smile.
Not as a necessity.
Many buy cars to use as Point A to Point B means, and not much else.

I am more than happy spending extra $ to switch cars every few years.

Yet, I'm the type of person who hates spending money on vacations... or anything not material... I feel a plane ticket is a complete waste of money.. I pay $$ to sit in torture for X amount of hours...
But then my gf loves to travel and is more than content and happy with her 8 year old civic (which, knock on wood, has given her no problems, averages 40mpg, and other than the 4k oil change has cost her nothing in repairs)

I cannot comment on what I will be doing when I'm 84.

I could be dead for all I know.

I am a workaholic and plan to stop working 'because I have to' before I reach 40, which is about 2 decades away.

Leasing Toyotas/Hondas that will indeed last you a long time with minimal repair may not be the most ideal situation; but when you start talking about 50k-100k cars that after warranty, end up costing more to repair than payments on a new one, it becomes different.
And if you're bored of your car... it's pointless to be paying (either for the car or for the repairs)

I've been fortunate enough to be able to switch cars every 18 months and making money off it too.
So I guess until my luck runs out, I may be a tad arrogant and I'm not going to be ashamed and deny it.

Back to topic...
The warranty is a good 'safety' and security to have.
But if you plan to keep the car, take the $ that it would cost to buy the warranty and put it away (or invest in stocks if you know what you're doing, otherwise no as you may lose it all)

Then keep adding a little each month to it (whatever you're comfortable to afford, be it $50 or $100+)

So if an event comes when your is giving you problems, you will have a safety fund ready so no need to panic.

Good luck.