Buy The Used BMW, Not The New Honda

"MojoMotors.com" (MojoMotors)
10/22/2014 at 09:00 • Filed to: car buying, used cars

You might be thinking this is a click bait title because we've been touting Honda as one of the !!!error: Indecipherable SUB-paragraph formatting!!! and for building !!!error: Indecipherable SUB-paragraph formatting!!! . Here's the thing, some people don't really care about long term reliability because they don't plan on keeping their car until it dies. Perhaps they care more about getting the best possible price on a used car.

Buying a new car is not the way to go if you're looking for that "sweet spot." New cars depreciate faster than you can drop a hot potato. Take the brand new 2015 BMW 3 Series, for example, which has an average MSRP of about $40,000. Our study found it will lose over half its value just a few years later. The same thing happens to the Honda Civic. The average MSRP of a new Civic is just under $23,000, but a handful of years later, its value drops nearly 50 percent. We're thinking !!!error: Indecipherable SUB-paragraph formatting!!! will definitely be on the same page with us here.

So how did we figure this out? We looked at the average price of a new 2015 BMW 3 Series and Honda Civic and then compared to their respective 2010 model. The change in price over those years showed us depreciation per year. Assuming a used car had an average of 12,000 miles driven per year, we were also able to determine depreciation per mile.

If you want to buy a used luxury car and keep it for a few years, the optimal time to buy is around 60,000 miles. You lose the ability to buy most certified pre owned luxury cars over 60,000 miles, but you won't be overpaying for the first few years of ownership. This logic also applies to the Honda Civic. It is at about 60,000 miles when you see the incredible resale value of Civic on display. A used Civic is only a few thousand dollars less than a used 3 Series!

At the five year mark, you're still able to purchase a high quality car, but you're not paying for the high depreciation during the early years of new-car ownership. However, this is where a vehicle history report or knowing about the previous owner(s) is critical. Sure, no vehicle history report is perfect, but you'll know if it's been serviced regularly, been in an accident or has any problem-areas. When looking at this data, two buying options really jump out.

Used 3 Series with 60,000 miles

Costs less than a new Civic

Already lost more than half its initial value

More "car" than a Civic

Used Honda Civic with 60,000 miles

Less than a used 3 Series with the same miles

Already lost about half its initial value

Will be worth more than the 3 Series at 120,000 miles

Another option to consider is buying a "more used" car with over 100,000 miles. This is perfect if you're the kind of person that wants to drive a car until it dies. The average car on the road is over ten years old and if the average miles driven per year is 12,000, then there are a lot of cars with over 100,000 miles. Using the same math as the first graph, we looked at the average price of the 2010 model year Civic and 3 Series and then compared with their respective 2005 models.

A used Civic with over 100,000 miles can likely go another hundred thousand or so with the proper maintenance. If your cash strapped, go with a high mileage Civic. It won't depreciate as much as a BMW and it will get better gas mileage, too. Double the savings!

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DISCUSSION (65)

georgia10 > MojoMotors.com
10/22/2014 at 09:12

Is cost of ownership about the same for these two cars? I can't imagine it is. I've never owned a BMW but I've heard as they age they can become quite expensive, not to say you won't run in to problems with a 10+ year old Honda but I would guess that the cost of repairs over the life of the car for the Honda would be much better.

MojoMotors.com > georgia10
10/22/2014 at 09:19

As you might imagine spare BMW parts can be pricey, but cost of ownership is high on new cars because of the rapid depreciation in the first few years.

Samuel Jackson > MojoMotors.com
10/22/2014 at 10:17

What about a new BMW vs a used Honda? What should I do then?

MojoMotors.com > Samuel Jackson
10/22/2014 at 10:41

If you can afford a new BMW, are you really considering a used Honda?

Samuel Jackson > MojoMotors.com
10/22/2014 at 10:45

Kinja'd!!!

n54 & s38 > MojoMotors.com
10/22/2014 at 13:12

Ha. The water pump on my 2008 BMW 335xi 6 MT that I bought as a CPO car just died this morning. CPO warranty was up in June...

txgenius > MojoMotors.com
10/22/2014 at 13:31

Cost of repairs on a BMW are ridiculous.........go with the honda

syracuse1 > n54 & s38
10/22/2014 at 13:32

As a former German luxury car owner, I can say this is a common thing, (that and alternators, electronics and transmission issues)...and exactly why the writer's advice could cost many buyers lot of money - and worse, time without their cars. After 60,000 miles, you are in the thick of expensive repairs with many BMWs, Audis and MB cars.

How about another option? A CPO Acura...which is a Honda with more luxury.I have one now as a second car, (2006). It drives well, it's sporty and luxurious...and it is bulletproof. Oil, filters, tires. (Before you pooh-pooh an Acura or Lexus as a fancy Honda or Toyota, consider that many Audis are rebadged VWs).

Satoshi "Zipang" Katsura > Samuel Jackson
10/22/2014 at 13:35

What on God's Green Earth is that thing? You're doing something wrong, son.

Kinja'd!!!

functionoverfashion > MojoMotors.com
10/22/2014 at 13:53

Having owned both Hondas and BMW 325s later in their lives, I can say that the BMW definitely has higher maintenance costs. My last two Hondas and my last two BMWs have all come my way with around 120k on the clock already. For me, the biggest difference was that closer to 200k, my Hondas had some rust issues that made it not worth continuing to maintain them, but the BMWs do not have rust issues to the same degree.

However, I wouldn't recommend the BMW @ 60k, because basically everything will be original, and you will soon be replacing the cooling system, numerous suspension bushings, various gaskets and peripheral engine parts, sensors, window regulators... by 120k if the car has been well-cared for, a lot of this stuff will have been done between 80-120k; however THIS is why the importance of service records is so emphasized.

USPECIAL > Samuel Jackson
10/22/2014 at 13:54

Hey, if you don't have to go to work, or get your kids to school, or count on a car to drive to grandma's for Thanksgiving then buy a used BMW. If you NEED a car for basic lifestyle then buy a Honda. best of both worlds buy a clean used Lexus.

bulldog > MojoMotors.com
10/22/2014 at 13:57

u buy the 2010 bmw for 16k the 2010 honda 12k then in three more ys the bmw is worth 5-8k depending on milage at 1ook the bmw is worthless about 5k the honda will still be worth 8-10k and at 100k if u can find one for sale its considered just broke in most honda civic and accords with 140k are selling for 1/3 there original cost also during the 3 yrs u may have spent nothing on the honda for repairs less consumables the bmw is usually leased up front and when the 50k warrenty is up everyone dumps them and thats why the huge depreciation the start needing all kinds of things cam sensers is a biggie and believe me the cost of a repair will be 4 times the price of a honda for the same repair. ive baught american all my life im a mechanic and ive found the honda to bethe easiest and cheepest car to repair i finnally gave in and got one it was a used crv with 105k its got 180k on it i changed a belt brakes and oil every 3k and all diff fluids every 30-60k they go forever. please have deep pockets for repairs if u buy bmw there great looking great driving one of the best if u cant afford a new one id skip it.

flyingdals > MojoMotors.com
10/22/2014 at 14:00

I've owned many Hondas (going back to 1980 - new Civic), and I've owned a couple of BMWs both MINIs. Driven a lot of BMWs, but only owned the MINIs. Absolute blast to drive, but as my mechanic friend says - once the warranty is over on a BMW, dump it and dump it quick. I have 20 year old Honda vehicle that runs like new - paint is still immaculate, I have an 11 year old MINI that runs well (but is really pricey to keep up), and I have a 7 year-old MINI that is kaput (automatic transmission - avoid at all cost). All of my Hondas have gone to at least 200,000 with no major issues (did have an a/c unit go out on the CR-V at 245,000 miles), but the BMW is a completely different beast. Fun cars (the ones I drove), pricey to fix (so are Hondas) - however if they don't break, you don't pay. The Hondas produced in the last 7 years or so - are very boring and dull, but with minimal maintenance you should hit 200,000, the BMWs are fun - just don't hold them long. It's like comparing the nice, wholesome girl you would marry, to the slutty-looking wild girl you want to date. What's your desire?

SixSpeedSteve > MojoMotors.com
10/22/2014 at 14:00

Having traded in a used Civic to get my used 128i (M-Sport), I can't even put into words the difference between the two. I literally went from beige to technicolor. Driving the Civic was the worst part of every day that I drove it. Slow, loose, and lifeless. I hated that car. But the 128i is a dream. Fast, tight, and full of life. I love this car. That straight six is divine.

Always go for the nicer car. The higher cost of ownership is worth it for the things you can't put a price on.

OmarLittle > MojoMotors.com
10/22/2014 at 14:20

I never trust a German over 70

B777-9X > MojoMotors.com
10/22/2014 at 15:00

An aging BMW vs an aging "non-luxury branded" car... which will be the costlier to maintain and own? Over the life of the vehicle, which will have the fewer repairs? Look, people who buy a BMW are looking for something more than a reliable car, they are looking for a label... some perceived "status" or something, and they are willing to pay for that. Smart? No. For a lot of us, being able to drive a car inexpensively and reliably for a long time is just far more important. So the audience for these 2 cars is wholly different, IMHO.

Hugh Lokey > MojoMotors.com
10/22/2014 at 15:10

Anyone who buys a used BMW that is not still under at least a power train warranty is an idiot! While BMW's might be great cars to drive they DO NOT have a reputation for reliability and are damn expensive to repair - even by your local shade tree mechanic! The only way to drive a BMW is on a lease so you can easily get rid of it before it starts to fall apart.

Hugh Lokey > Samuel Jackson
10/22/2014 at 15:11

Get an appointment with a good mental health professional.

Hugh Lokey > Samuel Jackson
10/22/2014 at 15:12

A couple of grand more in price over the Japanese "super scooters" but nowhere that much in performance/value.

Hugh Lokey > n54 & s38
10/22/2014 at 15:14

Welcome to world of used BMW's. The Germans are very clever and they engineer them to start falling apart after a certain number of miles :-)

Hugh Lokey > SixSpeedSteve
10/22/2014 at 15:16

When you hit your first repair you will not be so excited about it and will wish you had bought a new or used Accord Coupe V6 instead.

n54 & s38 > Hugh Lokey
10/22/2014 at 15:32

Yeah it's kind of funny because my car just rolled over 80k kms. Which is when the original warranty expires on Canadian cars. Almost like it was designed that way...

JerseyJoey > MojoMotors.com
10/22/2014 at 15:35

I considered a new Honda Accord Sport while shopping around earlier this year. I never considered buying a used car until I started researching prices of CPO cars and finding that I could afford to be in a luxury car for around the same price as that Honda. I ended up getting a 2011 335ix with 30K on the odo, with almost every option you could have added (the MSRP when it was new was over $54K). I'm happy I made the decision to buy used this time.

TheInfamousMisterLicious > MojoMotors.com
10/22/2014 at 15:39

Earlier this year, I sold a 2009 Accord V6 coupe to pick up a 2007 335i sedan (both high option, stick shift). The move basically cost me nothing. The BMW is literally a hundred times more enjoyable to own, drive, and maintain than the soul-less appliance of a Honda.

TheInfamousMisterLicious > Satoshi "Zipang" Katsura
10/22/2014 at 15:40

"I didn't know BMW made cars until I passed one on my BMW motorcycle"

Chris Thede > MojoMotors.com
10/22/2014 at 15:56

Kinja'd!!!

Hey do I spot my e34 that I picked up a couple months back? I like this article. I wonder how they compare in 22 year old models...

Samuel Jackson > Hugh Lokey
10/22/2014 at 16:10

Anybody dropping 10 G's on a scooter needs to re-evaluate their whole life.

SixSpeedSteve > Hugh Lokey
10/22/2014 at 16:11

I'm not looking forward to my first big repair bill, but I'm prepared for it. And it will be worth it. Driving this car makes me happy in a way that no Civic or Accord ever will, and I've driven them both, including the V6.

JimmyGee252 > JerseyJoey
10/22/2014 at 16:28

Good luck with it.

JimmyGee252 > Hugh Lokey
10/22/2014 at 16:30

If he had purchased a Civic Si, he would still own it. Comparing a base Civic to a BMW 128i M-Sport is a joke.

Piggiful > MojoMotors.com
10/22/2014 at 17:01

Why not? For many people, it's not about affordability. Unless you actually buy into BMW's marketing. I assure you the bimmers are pretty awesome in the first 3 years of their lifetimes, but they are far from ultimate driving machine. Bimmer engines deteriorate rapidly every second you drive. I always get rid of my M3 at the end of the 3 years. Some other sucker can have it. For a honda, at the end of 3 years, it may just begin to be properly burned in:) They are great for parking in the train stations and grocery stores.

mike > MojoMotors.com
10/22/2014 at 17:25

i bought a 2011 328xi instead of a new accord earlier this year and i am still super stoked with my decision. saved 8k and got more options. resale is still holding up well.

458italia > MojoMotors.com
10/22/2014 at 17:30

I own both a bmw and a honda. This article doesn't talk about the huge difference in maintenance and repair costs. Oil change on my bimmer 3 series costs around $100 because it uses 6.5 qts of oil. An oil change on my honda accord costs about $30-$40. Don't even get me started on brakes. You'll be in for a shock if you think buying a used bimmer will be similar in cost to buying a new honda.

huskydoggy > Samuel Jackson
10/22/2014 at 17:58

Hate to sound sanctimonious, but some of us (although few apparently) actually care about how much carbon they're throwing into the atmosphere. How does this factor in to this decision?

Chaz > Piggiful
10/22/2014 at 18:57

BMW? Honda? What if I told you I have a 1986 Chrysler LaBaron Turbo, (Cost me new $11K) with over 200K miles on it and it still gets 21 mpg city and 26 mpg Hwy? Very little expense over the years, oil change every 3K miles, plus I've kept it garaged when not in use. Also have a 2001 Grand Prix GT (cost $19,600) with 149K and have had little expense over the years. Both cars run with little trouble. There are other cars besides BMW and Honda, this proves a point.

Kat Callahan > MojoMotors.com
10/22/2014 at 19:46

May I have both, please? Those are my two favorite makes.

signintoburnerlol > MojoMotors.com
10/22/2014 at 20:11

That's what i hate.

I heard they're expensive to maintain.

I heard they break down a lot.

What can you offer then?! Your words from others? Horatio, thou art e'en as just a man ,

The thing with car ownership and is that you'll always hear the bad more than the good. If someone owns a car for 100K and they never run across a problem, you'll most likely never hear a pep. If someone has a car for 50K and the fuel pump is giving out and their massage chairs are giving hand jobs, you'll hear them!

I'm not just talking about BMW's in general. Trust me, theirs Honda's out there that shit out their guts just as well. When reading a review on long term car ownership, take as mere cents.

NNop > MojoMotors.com
10/22/2014 at 20:37

This must be the most retarded article I've ever seen.... ever...

1. Read the article you stole the picture from

2. If you can only afford a beat to shit Honda Civic, you cannot afford a beat to shit 3 series with the cost of insurance, repairs and many other variables...

Use some common sense people, and stop writing these dumbass articles.

NNop > MojoMotors.com
10/22/2014 at 20:38

Because that's the same type of logic that is the impetus for the point you're trying to make.

NNop > JerseyJoey
10/22/2014 at 20:40

As a former e92 335i m sport owner.. Have fun!

...Until you hit 40k miles..

btc909 > MojoMotors.com
10/22/2014 at 20:44

Since it's past 3yr/36K miles you are SOL on putting an extended manufacture warranty on that BMW. Fixing a BMW (unless you know how to do it yourself, know someone, & source parts) isn't cheap.

The insurance on that BMW since it'll be consider a sports "whatever" will be insane as well.

Picking un a use Honda right under 3yr./36K miles and shopping for a 7yr./100K Honda Care warranty online is the way to go. Dump the car right around 70K. It was 100K but in many parts of the US the used car market is flooded.

Dr. Zoidberg - RIP Oppo > n54 & s38
10/22/2014 at 21:31

Bad 2008 BMW water pump, you say?

http://m.youtube.com/watch%3Fv%3D_v…

topsy > MojoMotors.com
10/22/2014 at 21:41

PLEASE! you barely want to own a BMW while it's under warranty, let alone as a "used" car. These things are sooo expensive to maintain. I could maybe agree if you said buy a used LEXUS. This article is useless.

simpatica474 > MojoMotors.com
10/22/2014 at 23:11

Yep. This is why I bought a 2000 Volvo V70XC with 85K mi on it. Lovely car in beautiful shape. Paid a whole $5K. The mileage, I may say, sucks, but as I don't drive much it's not that big a deal.

quenomamen > MojoMotors.com
10/22/2014 at 23:34

Screw both those ideas and buy two used Hondas.

The Om Dude > MojoMotors.com
10/23/2014 at 03:12

As the owner of my second and third BMW E-46s, and a former Honda Civic owner, I go with the Bimmers. The engines are nearly bullet-proof, and repairs (Yes, old cars do need repairs now and then. Get over it.) at our independent repair shop are reasonable.

Repairs and replacements on the 325iT have cost an average of $222.36 per month since the warranty ran out. You can't buy a new Civic for that.

The 330Ci (bought used 2.5 years ago with 56k miles for $13,500 cash) is a bit higher at $340.55 but those repairs include a $4,300 clutch for the SMG, probably due to a previous owner's over-use of launch control. In five years I never knew my first 330Ci's (bought new when I was in my "peak earning years") SMG had launch control.

dad2sophie > MojoMotors.com
10/23/2014 at 08:20

the old saying "don't buy a German car out of warranty". The repair cost on the BMW will be much higher even for parts that are replace thru normal wear.

the spirit of moira rose > georgia10
10/23/2014 at 08:24

No idea how Honda work it, but my experience with another Japanese brand (Mitsubishi) was that they stop manufacturing and stocking spares after a while. The Mitsubishi that we had was about 9-10 years old when the handbrake just went completely. They would have had to MAKE a new part in Japan and ship it over to have it fixed, which was basically more expensive than the car was worth. I guess that you'll have a bigger pool of spares from scrap for a typical Civic and 3er since they're pretty popular?

We now have a late 2010 3er with about 120k km on the clock (all from us) and I'm surprised that it's not more expensive to run than it is. Since it's a diesel, it requires little maintenance, so even though a service is more expensive than with the Mitsubishi, we have to have it serviced less often. Overall, it's actually cheaper to run, which is kind of unexpected to be honest... But then, we're pretty gentle with our car and have never had any accidents.

MojoMotors.com > NNop
10/23/2014 at 08:30

Using common sense would argue that buying a higher mileage used car is the best way to save money and avoid depreciation. At 60k, the 3 Series wins out. At 100k, the Civic wins out.

theshinobi01 > MojoMotors.com
10/23/2014 at 08:38

Except there are a few key things that owning a BMW will cost ALOT more to run on the long run over a Civic: maintenance, premium gas over regular gas, worse gas mileage, insurance, repair costs. That and if you get the N55 engine, the high pressure fuel pumps still have its issues (have a friend who has owned 3 different 335i's, all three over various model years fuel pumps failed).

Syco > georgia10
10/23/2014 at 08:58

I have owned many BMWs over the years as well as Hondas, the BMWs are certainly higher maintenance cars and they cost a lot more to maintain compare to the Honda's. Hondas need regular maintenance too but they're very practical compared to the BMWs for example I owned a 2007 BMW 335i three years total maintenance on this three years cost me over $10,000 at the same Time I purchased a 2007 Honda Civic automatic fully loaded for my wife The only thing the Honda ever needed was oil changes and a set of tires total maintenance on this car for three years cost me $1800 I tend To disagree with this article BMWs are way more expensive in the long run!

Mercedes are way better they're cheaper to maintain them BMW buy a Mercedes.

404 Name Not Found > georgia10
10/23/2014 at 09:34

With a 328i? Not much to go wrong there.

Party-vi > NNop
10/23/2014 at 09:59

You're on Oppositelock and not Jalopnik. Be nice.

x234 > NNop
10/23/2014 at 10:29

NNOp, you can't criticize if you have no real experience with either brands especially BMW. I know guys who can only afford Japanese technology so they hate on the guy who can actually afford German technology. I've worked on BMWs for 20 years and have owned them outright as well. I also have a Japanese truck. Apart from the BMW maintenance being higher (no argument there), the quality and engineering is what people really look at. When I work on a Japanese V6 engine, it is poorly laid out, and very disorganized. When I work on a BMW V8 engine it is well laid out and very easy to get around. Now let's talk about quality. When you buy a Honda/Toyota, guaranteed in 4 years (where I live) the paint fades. It took my BMW 15 years for the paint to start fading. Let's talk about carpeting. My BMW carpet still looks new after 20 years. The Japanese cars/trucks they loose their fibers within a few years. Leaving your floors looking dull. Let's talk about options. I've seen my friends spend good money on a Toyota/Honda and they don't have half the options/technology that comes "standard" in a BMW. For example since 1984 most BMW models including the simplest 318i (4 cylinder) came with sunroof, power locks, power windows, and so forth. The basic 5 series came with much more options. Even the basic 7 series came with memory seats, power tilt steering, and also interior motion sensors, and this is a 1996 model! Imagine trying to buy a Toyota/Honda flagship model with the same year, and you won't get half the technology you get in a BMW. My 22 year old BMW still turns heads more than it would a 10 year old Honda/Toyota. Keep in mind (if you're technical), BMW made planes. Which means their engines are high compression engines. You can red-line a BMW longer than you would a Honda/Toyota. You drive a BMW hard and it WILL keep up. You drive a Honda/Toyota hard and you'll have problems with cooling, compression and maybe lubrication. You see NNop, this is why McLaren turned to BMW to make their V12 engine and NOT Honda/Toyota.

JohnKTally > MojoMotors.com
10/23/2014 at 10:55

Why is this a comparison of a used Civic instead of the Accord to the 3-Series?

MojoMotors.com > JohnKTally
10/23/2014 at 11:14

Arbitrary decision.

Benjamin Ross > MojoMotors.com
10/23/2014 at 13:34

Or buy a new car and drive it into the ground yourself.

MyTalkingPoint > JohnKTally
10/23/2014 at 14:33

The Accord would be in the same segment as the 5-Series.

JerseyJoey > NNop
10/23/2014 at 15:50

Lol, thanks. What happens at 40K? I'm almost afraid to ask....

ElCheezy > Samuel Jackson
10/23/2014 at 16:42

Get the used Honda. Use your leftover money to get a Miata.

Kevin Rhodes > MojoMotors.com
10/23/2014 at 17:37

Better yet, buy a new BMW, use it sparingly, maintain it correctly, and keep it so long depreciation is but a distant memory. I plan to keep my '11 328i wagon until I am too old to drive it. Shouldn't be a problem at the <8K a year I drive it. And if you can afford a new one, maintenance and repairs are chump change in comparison to paying for it in the first place. I plan to be "that old dude" who drives the mint condition car he bought 30 years prior.

superdave847 > georgia10
10/23/2014 at 20:40

I drove a 2002 BMW 325i until 170,000 miles, without any problems, except replacing oil & brakes (which is normal maintenance). A BMW 3 Series is simple enough that it will not require ridiculous maintenance costs.

Saf1 > MojoMotors.com
10/24/2014 at 02:09

Interesting! What causes a Civic to be worth more than the 3-Series eventually??

mazdaspeed2 > MojoMotors.com
10/26/2014 at 07:56

These articles really should include average maintenance costs. Of course we all love to say that we can get all these other things instead of *insert beigemobile here* but in this case the average price for maintenance on the 3 series could easily be triple that of the Honda. Not saying I wouldn't still pick the 3 series, but these are kind of misleading.

bimmernerd > georgia10
10/30/2014 at 21:28

I've owned four used BMW's in my lifetime - two five series, and currently own a three and a six series. IF you are one of those individuals who take your car to a dealership for repairs, buy a Honda if you're looking for value. If you can do your own brakes, and take care of basic repairs yourself, the actual parts for the cars (standard parts) not talking about parts for the BMW that may not exist on a Honda - they aren't generally any more expensive for a BMW than they are for a Honda, a GMC or Ford (which I also own). As a matter of fact, there has been times when it has been less expensive to buy BMW parts than for my Ford (Example: New radiator for my 328i $120 at AutoZone - $168 for my Expedition). I agree with MojoMotors 100% - My '05 645ci when it was new was nearly $100K - I paid less than 25% of that for it earlier this year with only 60K miles on it - and it's WAY nicer than any Honda I've ever driven.