When Shopping USED, Would You Rather Take A Chance And Pay LOW Or Get A Well-Sorted Dealer Car And Pay A PREMIUM?

In recent weeks I've been getting a serious itch. Let me just be completely transparent.

I have money burning a hole in my pocket and when an M Coupe passed me last weekend during an early a.m. drive I said to myself "I need to have that." So, I did what any other gearhead with an itchy trigger finger and serious car attention deficit disorder (ADD) would do. Troll the forums and start looking at what the market is commanding for an M car. Though I saw an M Coupe, I don't think I can actually fit — I am 6'8.

Having never bought used, this was a new experience for me. It quickly became obvious that the vehicles out there really fall into three categories:

1) Wrecked
2) Used and on the market via private seller and priced aggresively
3) Used and on the market via dealers and priced at a premium — especially if it's been CPO'd

I noted during my search of online classifieds that the vehicles for sale by private sellers tended to seem a bit "shady." Most were not nicely looked after or would require a bit of work to get them up to snuff. Of course without buying used before, my worst nightmare would be to take a chance, get a clean pre-purchase inspection (PPI) and then all hell breaks loose. These are German cars, after all.

Then this week I came across this story pointed out by Carscoop. It shows a 2002 BMW M5 with less than 4,000 miles on the odometer on the market for nearly $68,000 smackers.

When I brought up the dealer's name to one BMW used car hunter, he noted they are way overpriced across the board for the vehicles they have in their inventory. And another friend of a friend who had actually purchased from them said NOTHING BUT GREAT THINGS; however, noted you do pay a premium. The good news is that the vehicle's are well sorted, which should put any soon-to-be-owner of a high-performance auto at ease.

So, I figured I'd pose the question to my fellow Spies:

Would YOU rather work with a private seller and take a chance OR would you rather do business with a dealer and get a well-sorted car?

What say you?


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investor27 - 11/10/2013 12:59:19 AM

+1 Boost

I would never buy a used M-car or any other used performance car. Just do what I did and get a Cayman S. It's the best deal of the century...arguably, of course.

Agent00R - 11/10/2013 10:59:04 AM

-2 Boost

I'd agree, the Cayman is a stellar product.

jeffgall - 11/10/2013 8:58:33 AM

+3 Boost

Spend the time and find a low mileage used car from a private owner who followed the maintained schedule. You can ask for documentation. A lot of times people are moving or need to off load a premium car they found they can't afford. Many are in good condition and just need some wear items replaced like tires. You will save thousands when compared to the dealer. Remember, the dealer charges a premium because of buyer convenience, but if you are willing to put in the work, you will save money.

Agent00R - 11/10/2013 10:58:03 AM

-2 Boost

Valid points!

MattDarringer - 11/10/2013 10:00:50 AM

-3 Boost

Why buy used when leasing is so cheap? Despite the fact that the dealer will cost you more to buy a CPO vehicle, the biggest benefit is legal recourse. With a private transaction, you ability to sue should you buy a lemon is NIL. With a dealer there is usually a warranty and they are 100% liable for undisclosed, pre-existing conditions for as long as the car is on the road.

Agent00R - 11/10/2013 10:57:35 AM

-2 Boost

You can't lease an M Coupe or E39 M5 that I know of.

USNA1999 - 11/10/2013 5:02:04 PM

+1 Boost

Yes you can lease an M3 coupe, at least here in JAX (Tom Bush BMW). My buddy will be done this Janaury with his 3 year lease on a white 2011 M3 Coupe.

Agent00R - 11/10/2013 5:55:13 PM

-2 Boost

I am speaking of the "clown shoe" M Coupe — 1999 - 2002 build.

abqhudson - 11/10/2013 8:47:03 PM

+2 Boost

In my opinion, the very best cars will be available from private owners who have the service documentation to prove it. One owner is best. It will also cost 20 - 30% less. Even lots of new car dealers have auction cars and they don't have a clue about history. If extended warranty is your thing, buy it yourself for 1/2 of what the dealer will charge. The downside is that it takes time and effort to find the right car - from the right seller. The hunt is kinda interesting.

t_bone - 11/10/2013 8:49:49 PM

+2 Boost

Private always...although I would also consider a broker.

irishmike - 11/11/2013 12:36:24 AM

+1 Boost

Used from a private owner. The hunt can be long, but sometimes enjoyable. Once the quest is over, I start looking forward to the next one. I like to sell my cars the same way. Trading is a last resort. The dealer can't afford to pay you much.
I often tell sellers that I am not going to give them retail since they cannot finance, offer a warranty, register the vehicle, or service it, etc.

Agent009 - 11/11/2013 10:37:04 AM

-2 Boost

Well you can do both sometimes:

Paid $2k under NADA for my 2012 Factory Certified Mini with 10K on the odometer

The warranty was extended to 6 years 100K under Mini Certification

We worked in free maintenance to 100K and I walked out @ $1.5k under market value with a massive warranty and maintenance program.

Hard to beat those features and price. The maintenance covers consumables such as brakes and rotors @ 100% not a prorate. You got to watch that.

skytop - 11/11/2013 9:59:42 PM

+1 Boost

Buy it cheap and drive it like you stole it.

Jonathan - 11/11/2013 10:31:41 PM

+1 Boost

I bought used from a "luxury" used dealer...but with some caveats.
1. It was still under warranty 2. Service was up to date and documented 3. There were no documented crashes 4. I had the car reviewed by the official manufacturer's bodyshop foreman who said that, as far as he could tell, there had been no repair work done on the car.
Good luck.

aussie2u - 11/11/2013 11:02:14 PM

+1 Boost

It all depends on the dealer. When I lived in south Florida, their used BMW's just came off the truck from the Mannheim auction like any 3rd rate used car dealer. They didn't know history but could CPO it if it didn't show obvious paintwork and had a clean carfax. Is that worth a large premium over directly talking with an owner, listening to him speak about his car, discussing maintenance records & repair history, surveying his demeanor and basically getting a firsthand feel if everything is as advertised? Personally, I'd rather do the latter.