Hello all,

I'm a previous owner of a 94 Euro E36 M3 (3.0L 286 bhp) and an 89 E30 M3 (2.3L 200 bhp). I've finally made the decision (and saved the money) to buy a CPO E46 M3.

So, I drove down to my local BMW dealership yesterday (that's Erhard BMW for all you guys in the Detroit metro area). I handed them a long list of specs for the M3 I have in mind. Basically, I'm looking for a 2004 with up to 35000 miles or a 2003 with up to 40000 miles. I'm willing to spend up to $35000. The car has to be a manual...

15 minutes after leaving the dealership I get a phone call from the CPO client advisor I talked to. She said that as I was leaving, they received a 2005 M3 with 27000 miles and the 6-speed manual trans. The car is a Jet Black coupe, with black Nappa leather, aluminum trim, 19" wheels, premium package, cold weather package, adjustable seats w/ lumbar, rain sensors, navigation, HK stereo, PDC, the works. It had every single option I had on my list (both must haves and nice to haves). The car only had a single owner. The previous owner, who is 48, happens to be the neighbor of one of the business managers at Erhard. The car is currently undergoing the certification process and will be ready to show sometime this coming week.

Here are my worries:
1- The client advisor mentioned that there is a small dent (size of a quarter) on the hood. She said that they have a body shop that would take care of that. I'm kind of anal when it comes to my cars, so that freaked me out.
2- Jet black is #3 on my list of colors (after silver grey and carbon black).
3- Since it's a newer car, it would cost more. She estimated the price after the CPO process and putting on new tires to be around $39k to $40k. I'm still going to offer $35k max, I'm not sure how they'll respond.
4- I asked her about the service history. She said the car was serviced at 26000 miles. I assume that was Inspection I, so when I asked her if it indeed was Insp I, she said she didn't know and that only a couple of items were taken care of on that service. She seemed to know nothing about Inspections I/II. Then I asked her about the post-break-in service at 1200 miles, and she also didn't know, but said she would check.

So I just wanted to know what you guys thought of this deal, and whether I should strain the wallet and pay a few extra bucks. All opinions are welcome.

Thank you.

P.S. Apologies for the long post :)

well it seems that you know the previous owner, so there all your questions/worries are answered. thats just what i would do

I saw that car yesterday. Its a convertible. Stood right infront of the entrance. I think it might be a bit overpriced, so I think you would be wise to not settle for anything more than 36k. Car seemed to be in pretty good condition, but I saw it when it was getting darker. That was the only e46 on the lot.

Probably a good idea not to offer anything more than $35k.

Thanks for the replies guys.

@gameboy: I don't know the previous owner. I got that information from the client advisor...

@kingmob: The one I'm looking at is a Jet Black coupe. The convertible you're talking about must be another one. I know they have an 06 Carbon Black coupe, a Titanium Silver convertible, and an Imola Red convertible. Oh, and they have a 360 Spider and a Gallardo roadster :)

The client advisor called me today telling me that the CPO process is held up because they have a long waiting list!! She said that many people were already inquiring about the car, so she thought she'd contact me first and signed me up for a test drive this Thursday. I asked her to have all the service history ready for me to look at on Thursday.

@Jethown: That's what I plan on doing. I have a feeling they won't like that, but that's really what I can pay.

Update:

I advanced the test drive and went ahead and took it over my lunch break today. Car drove great, just like an M3 should. The car is fully spec'd out, I'm really not sure what other options were available on M3s. The car has absolutely everything... Anyways, my major concern was the service history and I'm glad to report that it's spotless. Vehicle was brought in at 1246 miles for the post-break-in service. Then there were a couple of tiny defects that were resolved. A couple of oil services at 12000 miles and 22000 miles. Inspection I was done at 26459 miles. Vehicle currently has 27200 miles. CARFAX report is 100% clean. The ding on the bonnet is actually tiny, about 5mm diameter. If I wasn't obsessed with perfection I would tell them not to have it fixed.

Of course, there's a downside: PRICE!! The current sticker they have on the car says $41999. I offered $36k, they said that's not gonna happen, especially after they replace the tires, CPO, ... They said $38500 is the best they could do.

What do you guys think??

You budgeted $35,000. You offered $36,000. I'm confused there. That tells me you are making an emotional decision. What you need to be looking at is what you will eventually sell this car for and how many years from now. This car will depreciate with the E90 M3 out now. Leave your offer and continue shopping. I'm shopping for an E46 M3 Coupe 6spd and expect to pay about $25,000. That's a 2002 with 60,000 miles on it. I'm handy with the tools and a garage, so perfection isn't necessary, because new dings are inevitable. Why go to a dealer? Add $2-3,000 because of that. They have excessive overhead costs. Private owners have no overhead.