In Reply to: Question posted by Natalie on April 04, 2001 at 19:43:59:
1. Original price
2. Existing market conditions for 1-2 year old models
3. Buyer reactions to the 1-2 year old car market
4. Sellers responses to buyer reactions
5. 100K mile warranty selloff
1. The 750iL is now the 2nd most expensive car to obtain from BMW only surpassed by the Z8. It is a limited production car due to it's high price and market assorption rate. It's not price pointed to the masses like the more affordable 3 and 5 series. My 92 750il was 82,000 originally and now they command a 95,000 asking price.
2. Current buyers of these elite cars see the existing used car market prices. React accordingly which perpetuates the cycle. Used cars 1-2 years old find themselves already in the high 40/low 50 thousand range.
3. When a buyer sees the 1-2 year old market index then they make 2 choices, buy a 2 year old car for nearly 40% off of new, which leaves the would be seller of his 1 year old model advertised at 70K scratching his head, or they buy a brand new model. Why buy a 70K model 12 months old when for 20K more it gets you a brand new one.
4. The 70K would be seller is left in the lurch either way the buyer goes. So he has to sell the car for what the market will bear.
5. Educated new BMW buyers purchase a 100K mile warranty to cover the high maintenance costs. V12's powered automobiles have the highest maintenance costs of anything BMW builds. This does not mean the engine and transmission are problematic. Usually these are the most robust components in the car. But with a flagship sedan, options are few with everything being std equipment. This makes for a very complex car and using an old adage, "...the more stuff there is to go wrong". The dealers also contribute to a conspiracy that 750 owners have more money than their 3 or 5 series compadres' so they charge appropriately for everything.
When the 100K mile warranty is up. Most owners do not want to start covering all the expenses for the car. So selling the car becomes very attractive. However second hand buyers know a warranty is unavailable and unless they get a great deal on the car initially they don't buy.
5. Maintenance on a high mileage car is necessary because the previous owner/s have expended the life out of some components. The most common being the front suspension, driveline, intake manifold gaskets, fuel pumps brakes and rotors. For the shadetree mechanic like most all of us on this board it's not a problem. We bought the cars at such low prices it's worth it to pay top dollar for parts. We save by not incurring the labor costs. Not to say cars never go to the dealer or independent but for the most part, alot of work is accomplished at home.
Before you make your purchase do all of the following.
1. Spend a week going through the archives of this board too see what kinds of problem occur.
2. Have the car inspected either by a competent mechanic or do it yourself. Finding a competent mechanic or dealer is easier said then done. Most independent shops don't have a huge V12 customer base and from the "legends" that V12's are complicated, expensive, etc. some actually shy away from them or give ridiculous quotes and advise just to avoid the work.
3. Post your questions to the board. Here you can access 100 competent mechanics who know the car your looking for intimately, with secondary contacts from their own spheres of influence.
Why is it that the late 80's/early 90's 750il's are so cheap. I see most of them selling for 10-12000. Why so cheap?