3rd party luxury car dealer

[Anonymous]

Just came back from a MB/BMW (mostly) used car dealer. I told them I had some negative equity and some cash for them. They had me fill out an application on their site and want me to come First thing Monday. (My mom had to be present to sign off my Honda ) .

Do 3rd party dealers run different credit?

He sounded confident saying he could get me in the car of my choice (335i MSport 2013 97k) 16000$ msrp with 4500 neg equity.

They didn’t run my credit but said they would view my app and make a decision.

How does that work?

[Brian_Earl_Spilner]

They run your credit with whomever they partnered with whether it's Chase or a sub-prime lender like Santander. When they're that confident it usually means one or two things. First, they're gonna shotgun your app to everyone and see who bites. Second, they may have their own financing which usually isn't very good, requiring things like 40% down, or you have to go to the dealer to make payments if they're a buy here/pay here. You should always get your own financing before speaking to a dealer. Also, you're gonna want the car inspected by a BMW dealer before purchasing, with that many miles.

[Anonymous]

These guys seem legit, they have all types of cars in great condition. Even high end cars like Bentleys. Plus I would have to pay a service fee for the inspection work they do on the car.

[Shooting-For-800]

I would really think twice about a used BMW with 100k miles.

GL!

[Anonymous]

I can’t imagine how you’d feel about my Slippin n sliding wind cruising Honda

[Brian_Earl_Spilner]

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@Anonymous wrote:
These guys seem legit, they have all types of cars in great condition. Even high end cars like Bentleys. Plus I would have to pay a service fee for the inspection work they do on the car.

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I worked in the auto industry a long time, from dealerships to banks. I can guarantee that any small 3rd party dealership that isn't licensed to sell a particular brand, is buying their cars at salvage auctions. They then repair the cars, usually theft recoveries or minor accidents, with the cheapest parts they can, only using OEM when needed or when a cheaper alternative isn't available. If it's a trade-in, you have no idea how well it was maintained. An inspection is a must. The issue is further compounded by the fact that it's a German luxury car, which aren't reliable to begin with, coming up on 100k miles. A milestone which usually marks the start of oil and valve seal leaks and failures, transmission issues, suspension issues and failures, as well as forced induction failures. Not to mention the constant electrical Gremlins. To keep them in shape, the inspections are a must if you don't know how to work on them or have someone reliable that knows them in and out. Inspection 1 is every 30k miles for about $500 and Inspection 2 is every 60k miles for about $1000. if that's not something you can afford, this isn't the car for you as the repairs will easily pass the $1000 mark for OEM parts and labor. @Anonymous can vouch.

Just something to keep in mind as you're probably about to enter into a $20k loan for 5 or more years. Regardless, good luck with your purchase.  Personally, I'd put my reports on ice while I shop loans at credit unions and banks. You can give them a pin for one time access. If you don't, you may walk away from this with 30 inquiries.

[Anonymous]

^^^ all of that.

OP, we’ve all discussed this elsewhere on the forum. BMWs with mileage like this have a repair fetish that few cars can rival. It’s simple - buy one of them at this mileage, then go order roughly 70% of the engine, a new gearbox, all new mounts for everything, every control arm on the car, every gasket on the car, and all the ancillary parts such as alternator, starter, PS pump/lines/reservoir (those even fail), and have them on hand. Being a timing chain engine, the timing “service” is really thermostat, fluids, and plugs, but plan on the chain guides failing. On my 540iM, there were two ways to address that:

1) having 20 years of car work under my belt, my path would have been to buy the guide kit for $340, plus about $800 worth of “while you’re in there” parts like the oil separator, which is largely plastic and susceptible to heat damage, and which BMW therefore logically placed behind the V guide, burying it behind the timing system front and center on the block. Then get the $800 set of timing tools to lock the cams in position and block off about 40 hours to do the work. When you’re finished, pray the cams were locked back fully and the tools didn’t budge or you get to redo 30 hours of your labor. I was smart and dumped the car before this was needed.

2) drop off a check for $6000 and your car with a book value of $8000-10,000 at your dealer to have the work done. Don’t forget to tell them to also change out the $800 of other parts too, at $140 per hour, or you’ll be back for a tear down. Pro tip - the labor is charged again.

You seem dead set on getting one of these cars despite all the firsthand testimony to the contrary, and we are trying to save you from the experience. Some of us have been down this road. It isn't pretty. There are many other cars out there that perform and drive similarly without the bass-ackwards BMW design philosophy that will be better bets. There are other makes with the same brand cachet that'll get you the same "oooh look" responses (which aren't that often - BMWs aren't rare, only a few are truly special cars, and the public largely can't tell a 228i from an M2 CS or an X5 from an X5M, or an M760Li from a 735i). 

I hope in all this, you are wanting one because it's always been the ultimate attainable car for driving, not for impressing others, because they really don't impress many others. If it is for that, and honestly it seems that way (why else would one ignore all the facts on these cars at high mileage and stubbornly continue), it makes me think of something I saw regarding social media:

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"You only live once, so by all means spend 15 hours a day online, desperately seeking validation from strangers."

I think the dead horse has been beaten enough. With the details you've given regarding finances, this move to buy a high mile used BMW is completely senseless. Two people with barely borderline scores who will likely have astronomical loan terms for a car that will happily destroy you financially, is dubious even for someone who has plenty of cash reserves, let alone someone who has considerable financial issues already. Not being willing to spend $200 on a PPI to see what issues the car has before buying is even more foolish. I'm not trying to be a jerk here, I'm trying to help you keep from falling farther into a black hole. With age, these amazing cars become unbelievable POS money pits.

My advice remains to fix your finances while driving the Honda, square everything away, and then maybe qualify for a newer and younger BMW that has a warranty, so you can avoid having your a** torn out through your bank account. Do as you will but you've been warned by several.

[AverageJoesCredit]

I never post in this sub forum , maybe one day when i csn go for a new car, but im impressed with @Anonymous and @Brian_Earl_Spilner advice and their knowledge and experience should be heeded. Im car illiterate but dang that seems alot of work for a used car.

[randomguy1]

I have owned an e92 E90, E90 335d, F30 M3, and a 2016 5 series. Leased them all. I have plenty of friends in the BMW aftermarket business  (they are pretty large and on display at SEMA) and I would caution greatly as the other posters have about owning one after 100,000 miles. It is one thing if you can wrench and have access to cheap parts to rebuild a cheap car and another to buy a high mileage car at a 3rd party dealer. 

Brian is exactly on point about how these dealers operate. My former next door neighbor of 10 years owns those types of business and we have discussed it in length over a few beers. They are buying and flipping cars at a profit, not for your best interest. I still believe BMWs are one of the better all around cars on the market, but I would not purchase a high mileage one.

I get that you are in a Honda and want to upgrade to a BMW but the fact that you are underwater on your Honda and cannot afford a CPO BMW tells me you are way over your head here. Listen to the advice you have been given, you are best served by learning from the mistakes and experiences of others.

[ridgebackpilot]

Another experienced BMW owner weighing in to echo the good advice provided above.

Over the years, I've owned two BMW M5s, a 635csi, a 540i, and a 740i. Each of them had well under 100K miles on the odometer. Even so, most of them turned out to be money pits as they aged. Fortunately, I live in an area with lots of wealth that supports good independent European car shops. The BMW shop took good care of my cars but it wasn't cheap! I used to joke that it costs the same to buy a new car and pay the loan each month, or buy a used BMW and pay the shop each month! :-)

OP, I completely understand your desire to get rid of your Honda and into a BMW. But the advice you've received here is sound. Wait until you can afford a newer BMW and avoid having your finances further ruined by expensive car repairs!

Good luck with your decision...