The Grover Wheel

REPOST: Originally published this in the Grove City College Collegian. It is presented here in un-retouched format.

This week we feature a used luxury car that costs less than a new Toyota Yarris.

The age-old dilemma of used-verses-new centers around value. A new car comes fresh with a warranty and the implied promise of excellent reliability (at least for the first few years). For the same price, a used car can typically offer more car for the money because depreciation has already shaved down the price, albeit with less certain reliability.

The best used-car buys balance a track record of reliability with the features and capabilities the driver wants. Luxury cars often have very tempting used prices because their wealthy purchasers tire of them quickly and thus the depreciation is very high.

BMW’s 7-series is a classic example of how depreciation can work in your favor. A late-90’s example (say a 1999, in the middle of what BMW designates the “E38” series) would have originally sold for about $70,000. Today, that same car can be had for less than $10,000. It’s a tempting buy, but should you take the plunge?

Now, I am admittedly a BMW fan. But the appeal of the E38 is undeniable. It has strong street cred (it was Bond’s car in Tomorrow Never Dies and had a feature role in The Transporter) and represents the pinnacle of what BMW was capable producing at the time.

The driving experience is sublime. Sumptuous heated leather seats, heated leather steering wheel, multi-zone climate control all capable of keeping you comfortable for hours. The engine (there are two on offer, a V8 in the base 740 model and a V12 on the 750) is silky smooth and deceptively powerful.

Putting your foot down in the 7-series is an example of the expression “power corrupts” as the massive, 4300lb beast surges forward. Civilized, is the best way to describe it. The only real indication of how fast you are accelerating is the speedometer’s rapid climb and the scenery moving faster (accompanied by the MPG gauge dropping down into single digits).

Gadgets, too, are on offer. There are far too many to list here, but to give a flavor for the type of thought that goes into the 7-series, I will describe the starting procedure. Getting into the car, the key is programmed with your personal settings for seat position, climate control setting, and steering wheel position and will set the car up precisely as you want as soon as you turn the ignition on.

Sadly, it is this fanatical attention to detail that proves the Achilles heel of the 7-series. All those gadgets means there are a lot of parts to potentially break down. And, despite generally good mechanical reliability, the 7-series can be heart-stoppingly expensive to repair. Most 7-series owners recommend setting aside a few thousand a year for repairs.

And don’t think you can let the repairs slip. BMW’s respond notoriously poorly to reactive maintenance (where parts are allowed to fail and then replaced) and instead require preventative maintenance (where parts are repaired when they are worn out, not broken). Maintained correctly, BMW drivetrains will last several hundred thousand miles. If not, they can become one-way tickets to the mechanic’s shop.

If you decide to jump with eyes open, there are good E38’s available. Try to stick to the last years of production (1999-2001) as they have the fewest bugs and likely lowest mileage. Stick to the 740 and avoid the top-end 750 as the V12 is more unreliable and expensive to maintain. Also, look for one that has been owned by someone who kept up with the repair schedule.

Avoid at all costs the cheap examples that have been let go: a savings of a thousand dollars is not worth several thousand later down the line. As with any used car, have your mechanic check the vehicle thoroughly before purchase.

With care and a bit of cash (it’s still cheaper, in total, than a new Ford Focus) the E38 7-series can be a fun, luxurious way to drive around in style. Just don’t expect the purchase price to be the last bill you have to pay.