On August 31, 2020 i purchased what turned out to be a defective BMW X3E. The car was recalled by BMWNA about 5 weeks after i bought it. I seek a resolution of this problem.

Last modified: 
05/17/2021 09:14 AM  
Post date: 
05/12/2021 09:43 PM
Is this inquiry for a vehicle?: 
Yes  
Mileage: 
1,950miles  
VIN: 
9D45681  
I purchased a 2020 X3E, a hybrid,  from my local BMW dealer 0n August 31, 2020.
Within approximately 5 weeks i received a recall notice for the car from BMWNA stating the car had a defective condition in the batteries that could lead to the batteries exploding and the car catching fire. The car cost approximately $64,000. 
After receiving the BMWNA safety recall notice in October of 2020 i began researching the defect. BMWNA had reason to believe by August 1, 2020 the batteries in the X3E were contaminated with welding beads that could cause fires when the vehicle was charging, which can be done when the car is parked and plugged in or when the car is moving under braking or slowing.  Two weeks before selling me this defective X3E BMWNA halted deliveries of 4,460 similar cars because of the same defects in their batteries.  No one advised me or my wife of the defects prior to the sale.
Because my wife became afraid of driving the car after the recall notice it remained unused for 3 months while i sought repairs of the defects from BMWNA and my local dealer, with whom i have a 40+ year relationship.
In January of 2021 BMWNA notified me they had a fix for the batteries and instructed my wife to bring it to a dealer for repair. The car sat at the dealer for another 3 months while the dealer waited for the parts from BMWNA to perform the repairs. During this 6 month period i paid BMWFS over $8,000 in car payments. During this same 6 month period i paid insurance premiums on the car in excess of $1,100.
The safety defects which BMWNA knew about well in advance of selling me their X3E have been widely reported on in the general press, social media and especially in the automotive press. As a result of the wide reporting of this BMWNA X3E safety defect the value of my car has dropped precipitously. Further exacerbating this steep drop in the value of the X3E was the molasses-like response time by BMWNA in developing a repair for the defect. Additionally, BMWNA failed to move expeditiously to achieve reasonable settlements with affected car owners. 
As a general rule, new car values depreciate approximately 10% after the first year. The fact that BMWNA holds itself out as a luxury brand should mean that the residual value of a BMW wouldn’t depreciate as quickly as other vehicles. However, the value of my 2020 $64,000 X3E has, according to several databases, including the authoritative CARFAX History-Based Value guide, depreciated a whopping 33% as of April 31, 2021 after only eight months of ownership.  This enormous drop in the value of the asset i purchased i purchased is undoubtedly due to the safety defect in the batteries, the delayed repair developed by BMWNA and the failure of BMWNA to achieve reasonable settlements with affected owners, which has produced multiple product liability lawsuits against the company around the United States, thereby generating more and more adverse publicity for the X3E and the brand. The difference in the first year depreciation of most cars and the defective X3E is 23% or approximately $17,000. 
Thus, the actual present financial loss to me for purchasing this defective product is $26,000.  Regrettably, this loss will grow as the accelerated depreciation of this defective vehicle will continue to accelerate at a pace greater than non-defective vehicles. 
Against my present out-of-pocket loss of over $26,000 BMWNA has paid me $1,000.  Approximately 5 weeks ago they offered me another $3500 to release all claims against them.  On May 3, 2021 i wrote to Dewey Gatts at BMWNA and advised him my wife still wants a reliable hybrid vehicle. If BMWNA voids the sale of my 2020 X3E and takes my car back and pay me the sum of $6,500 i will agree to the purchase of a new hybrid vehicle from my local BMW dealer.
I prefer to resolve this matter without litigation.