A Jag, BMW or any German/Euro car used with over 85k miles is asking for trouble one way or another. And that's the kind of mileage that will be on these in his price range. They can be nightmares. There's a reason why they were traded in, think about that. They are great cars but not to buy with high mileage and second--or in a lot of cases--third and fourth hand.
He's much better off with something Japanese or a late 2000's Ford.
When you look at premium brands/models of cars; you have to take into account what type of owner would buy them new.
Many of these cars were leased, and definitely in the case of a Jag, by men age 40+ w/a home. The rest of the cars that were not leased were financed by eventually rolling it into their mortgage, business, or whatever. Generally, they were taken care of and maintained.
They were traded in once the lease was up, once the warranty expired, or when the car's depreciation expense was at a point it made more sense to buy a new car. In accounting terms, the life of a 'business vehicle' can be as little as 3yrs, when in practice, a car is useful much past that. Trade the car in, get screwed on its value while avoiding taxes on unrealized gains, get a new car & immediately write off up to 75% of the book price. If mortgage rates went even lower, refinance and roll the car loan into it.
This was standard practice. Well-to-do people don't just plunk down $60k, nor do they make payments every month at 9.5% - they find cheaper ways to own the car or they lease.
An entry level US car, on the other hand, would not receive such treatment nor would it have been bought in the same manner. Why would someone buy a brand new Ford Focus? Because they can't afford something a bit nicer. It's an appliance. The SVT Focus is even more strange; a Mustang GT was what - a few thousand more? To someone with not a lot of $ or is upside down on their trade; a few thousand is a lot.
So a $300+/mo car payment for 5yrs for someone that doesn't have cash or isn't further along in their career like a Jag/BMW owner is a bit strained. Routine maintenance doesn't occur and the car only sees a shop when a CIL comes on.
I've seen it over and over again; most people with entry-level cars do not take very good care of them b/c they take little pride in them. Something with badge prestige on the other hand, those owners take a bit more pride in them b/c if they didn't care about cars or what they drive - they'd buy an entry level appliance.
A lot of the premium European cars are ****. Saabs are junk, Volvos are worse, and somehow Benz is at the bottom of the totem pole. Audis are hit/miss - the 2.7L & 1.8L cars are turds. 6cyl BMWs are awesome - V8 BMWs are headaches. RWD Jags are awesome - FWD Jags...not so much.
What all these cars have in common are MASSIVE depreciation. A $45,000 BMW 3-series from 2002/3 can be had, today, for $10k and will have less than 100k miles...try closer to 70k. That's what I call a smokin' deal.
Why did they depreciate so much? Look above at the usual buyers of such cars and look at the buyers for entry level cars. For a couple thousand more; an entry level car will have a warranty.a much lower ARP %, and a longer financing term (60mo+). A used BMW will typically only be financed for 36mo and at a higher rate...so monthly out-of-pocket expenses will be lower for the new, yet slightly more expensive, car.
B/C of this, these $10k-ish euro cars do not move off of lots very quickly and this is reflected in the price. The secret is knowing which models, engines, etc to buy and which to avoid. I would avoid a hot-hatch like a hooker w/a sore on her lip regardless of how cheap it is. A 3-series or and XJR; I'd find ways to make a few extra bucks to own it.
