My feeling is that the more money you spend on a car, the more you will ultimately end up losing. If you spend $40,000 on a BMW 3-Series instead of $25,000 on a Honda Accord, you will lose more on the BMW. And it isn’t even all wrapped up in reliability. The BMW will also incur higher insurance costs, and I think their parts will cost more. Properly maintained, the two vehicles probably don’t differ that much in their reliability, but over a 10 year period, and largely as a result of initial and repair costs, the Honda will cost a lot less to operate.
The old BMW ads used to tout resale values, but I think even that’s a myth.
Now, there are exceptions to my “The more you spend, the more you’ll lose” axiom… If you buy a 1990 Fox Body Mustang, or a 1986 Corvette, or a 1988 BMW, chances are those cars are all done losing money, and it’s nothing but up from here. The common thread: These were desirable, expensive cars when they were new, so few were able to buy them… A lot of us are now in position to buy that 1988 911 we could not afford in 1988.
One thing that amazes me is how reliable cars have become. I turned 16 in 1974, and basically EVERYTHING was junk back then. There were very few exceptions, but it’s worth noting that German cars, in 1974, were about as good as it got.
Fast-forward to about 1990, and it seems like car companies started turning the corner right about then. I credit electronics with those advances.
Now, in 2008, there just aren’t as many awful cars as there were in 1974. When I bought my first car, in 1978, I got a 1976 Corolla. In retrospect, that was a terrible car, but compared with what I could afford, it was way better than a Vega or a Pinto, and I needed room, reliability and decent mileage. In relative terms, I got all that.
The bottom-line for me is that the current BMWs are certainly desirable enough to where if you can afford the initial cost, as well as the shock of higher repair costs, you won’t lose much in reliability compared with your neighbor’s Accord.
To me, it’s not worth it. But that’s just me. I now prefer Japanese cars. We may have a common point, though: Maybe you can find the BMW of your dreams on Carmax. I recently looked at various Japanese cars I can picture myself driving, and there are some great deals there.