It may come as no secret to many of you that I move to the beat of a different drummer.
So does it surprise you that when it came time to add another car to the stable that I would avoid conventional wisdom and take the opposite route?
In this case my wife’s leased daily driver was ready to retire after an entirely trouble free run of service. And we were in the market for another vehicle.
Since her daily demands of hauling cargo, car pooling, and shopping dictates the requirement of mid sized SUV, we started scanning the market. And scan that market we did. We looked at primarily at the upscale vehicles concentrating on the Acura MDX, Lexus’ RX350 (I know, I will catch hell for that one), BMW’s X5, and the Mercedes ML350.
Honestly all of these SUV’s are excellent in their own right and run in similar price points. But the since needs of my wife are far different than my own, she would make the ultimate decision when it came to ruling out choices.
The first to go was the MDX. The styling was the downfall here, (specifically that huge front beak) and was something she didn’t feel comfortable with the dealer. But we both agreed the interior was right on the mark.
The RX350 was the next to go. In this case the interior actually was the deciding factor. While sleek and sexy, it simply didn’t add up to an upgrade from what she had. I’m not knocking the RX, and it was well appointed, but there was not a definitive stand out that made you want the RX over a lesser Highlander. Combine that to our history with two prior Lexus models and their leather durability, and that was all it took to axe the RX.
The X5 was the last to go, though the comprehensive service and repair warranty made it very attractive. While I enjoyed the excellent response and handling of the BMW, my wife determined the firm ride was a bit excessive. The end result was that everyone we knew had an X5 and she didn’t want to be just like them.
So we ended up settling on a ML350. With impeccable road manners and a cabin that looked and felt the part of a luxury SUV, she felt this was the best choice for her.
So now comes the 009 twist on things:
Since this vehicle was also used for business we typically structure a lease to maximize the tax benefits. But with the increased reliability of all brands becoming more of an academic measure than a real world indication of a roadside failure. The question then arose “what about a low mileage pre-owned vehicle?” After all why pay for the drastic depreciation that all of these models experience? Why not let that original owner pay that depreciation off and we can then experience the benefits of ownership at a greatly reduced cost? I typically drive my cars to the well beyond the century mark without major issues so this should be very similar.
After crunching the numbers we discovered it actually worked out if the vehicle met certain criteria. The deciding factor would be any loose issues could be tied up with the remaining warranty on the vehicle. This meant the vehicle still had to have several months of warranty available.
This all sounds fine, until you realize that the used car market is pretty strong and that auction prices on used vehicles coming off lease are almost the same as street value. So out into the world of the internet we went to help find the perfect example. While we found many potential choices out there, one surfaced rather quickly and we focused our efforts. The candidate in question turned out to be a 2006 ML350 with over one year of warranty left and an amazing 14,000 miles on the odometer. Upon inspection the car was basically new in all aspects, the service record was intact, the title was clear, and the Carfax report came back clean. We had a winner.
The best part of this deal was that the original window sticker was available and the current price was over $23,000 less than the original MSRP, and over $35,000 less than a similarly equipped same generation new model on the showroom floor. With only 14,000 miles on the odometer this vehicle was available for less then even a decked out new Honda Civic.
So the great experiment is on. Will this purchase be the best of both worlds? Or will it be something to be regretted down the road. If past history is any indication with proper maintenance it will be the best choice.