|
|
SUPPORT ZPOST BY DOING YOUR TIRERACK SHOPPING FROM THIS BANNER, THANKS! |
Post Reply |
|
Thread Tools | Search this Thread |
08-21-2012, 11:06 AM | #1 |
First Lieutenant
36
Rep 358
Posts |
Difficulty trading in M coupe for a reasonable price
This is more of a rant, and also to get some help from others.
I have been trying to trade in my 2008 M coupe for about a month now, and every dealer I go to wants to low ball me, and offer 25-26k. The first one I went to offered 25k. I laughed at the salesman, and asked if they drug tested before hiring. I walked out, and went to different dealers, but everyone is offering the same. The car has ~35-36k miles, NAV, Sapphire black/Sepang bronze, and new tires. It has a clean history and it is in perfect condition. Anyone else having similiar experiences? Side note: Yes, I love the M coupe. Its just time for a change, and I want something a little bigger. |
08-21-2012, 11:11 AM | #2 |
Lieutenant General
2444
Rep 11,667
Posts |
that's about normal for a trade in.
The best way to maximize the return is to sell it yourself.
__________________
'21 M2C Hockenheim Silver
'18 718 Cayman S Lava Orange (sold) '13 E92 M3 Santorini Blue (sold) '07 Z4 M Coupe Alpine White (sold) |
Appreciate
0
|
08-21-2012, 11:12 AM | #3 |
Colonel
142
Rep 2,002
Posts |
NADA lists trade in for a 2008 M Coupe with 36K on the clock at 25K for rough trade in up to 29K for clean Trade in(assuming you have navigation and premium packages- if not about $1K less). If I was a dealer I would start at the low end as well. Did you just walk out at 25K or try to negotiate?
|
Appreciate
0
|
08-21-2012, 11:13 AM | #4 |
///Multiple
2998
Rep 4,243
Posts
Drives: M4 Coupe | M3 | Z4M Roadster
Join Date: Jan 2011
Location: San Diego, CA
iTrader: (1)
Garage List 2006 BMW Z4 M Roadster [8.81]
2016 BMW M4 Coupe ( ... [10.00] 2018 BMW M3 (Euro D ... [0.00] 2011 BMW 335is Coup ... [10.00] |
The dealer is in business to make a profit. He's going to sell your car and he wants to make a profit. The only way he can do that is to offer you less than what it's worth on the market. Isn't this obvious?
Why wouldn't you sell the car yourself? I've never traded in a car. You never get what it's worth, all you get is convenience.
__________________
The Coupe: 2016 M4 | Sakhir Orange | Black Full Merino Leather | CF Trim | M-DCT | More | ED 5/13/16
The Sedan: 2018 M3 | San Marino Blue | Black Full Merino Leather | CF Trim | M-DCT | ZCP | ED 7/18/18 The Roadster: 2006 Z4 | Interlagos Blue | Black Extended Nappa Leather | Carbon Leather Trim | Purchased 7/19/12 |
Appreciate
0
|
08-21-2012, 01:00 PM | #5 | |
First Lieutenant
36
Rep 358
Posts |
Quote:
Does anyone know what a reasonable profit margin is for a high volume dealer on a trade-in? I was guessing around 3% but I may be way off... A local BMW dealer offered $28.5k, which is more reasonable. I was hoping to be around 30k |
|
Appreciate
0
|
08-21-2012, 01:03 PM | #6 | |
First Lieutenant
36
Rep 358
Posts |
Quote:
The reason for a trading in a vehicle is for tax advantages....and as you stated convenience. |
|
Appreciate
0
|
08-21-2012, 02:16 PM | #8 |
Captain
63
Rep 862
Posts |
1. You can trade it into the dealer, take less, but save yourself a bunch of time advertising and showing the car. It also allows you to get a newer car quicker.
2. You can sell it yourself at a higher price, but invest the time and effort needed to sell it for the price you want. It all depends how much you want/need to get and how much time you want to invest. |
Appreciate
0
|
08-21-2012, 02:20 PM | #9 |
Colonel
142
Rep 2,002
Posts |
$28,500 is a great offer IMO. From another thread here I saw your car does NOT have cruise control(thus no premium package I assume?) and I would also think no navigation? so NADA would say your car is worth 24-28K trade in value. 28,500 is a great offer. I think 30K is a pipe dream. I watch Pawn Stars on the History Channel all the time. It amazes me how folks come in with an item and say "it's worth $1,000 so I want you to pay me $1K for it." The shop has to make a profit so it has to be a workable price for them to flip it. They aren't buying the car for themselves(as you already said- they are wholesaling it). That being said you MAY be able to get 30K(or more) selling it yourself, but then you lose the tax advantage(and the time you will spend selling it yourself) so it may be better to take the $28,500 and run with it.
|
Appreciate
0
|
08-21-2012, 02:31 PM | #10 |
Lieutenant General
2444
Rep 11,667
Posts |
^ sounds good to me too.
The only thing you have to watch is what #s they are talking for the other end of the deal. Some dealers will take money from the other end(new car) to make the trade in sound better than it really is. The ONLY way to negotiate a trade & buy is negotiate the difference. (net cost)
__________________
'21 M2C Hockenheim Silver
'18 718 Cayman S Lava Orange (sold) '13 E92 M3 Santorini Blue (sold) '07 Z4 M Coupe Alpine White (sold) |
Appreciate
0
|
08-21-2012, 02:40 PM | #11 | |
Major
231
Rep 1,066
Posts
Drives: 2015 X5 50i M Sport
Join Date: Aug 2007
Location: US of A
|
Quote:
__________________
2019 Cayenne Turbo
Gone but not forgotten: 2006 2.0T A4 Avant, 2007 Z4 Roadster 3.0si, 2006 M Roadster, 2013 550i M Sport, 2015 Cayman S, 2015 X5 50i M Sport |
|
Appreciate
0
|
08-21-2012, 02:44 PM | #12 | |
First Lieutenant
36
Rep 358
Posts |
Quote:
I'm not one of those people that has emotional attatchments to cars, I just want a fair price. If a dealer tells me that he could sell the car for $32.5, whether he can or can't, I would think that a trade-in offer of 30k would be fair. Just my opinion. |
|
Appreciate
0
|
08-21-2012, 02:48 PM | #13 | |
First Lieutenant
36
Rep 358
Posts |
Quote:
|
|
Appreciate
0
|
08-21-2012, 03:39 PM | #14 | |
Banned
56
Rep 1,739
Posts
Drives: 2008 Z4MC
Join Date: Aug 2010
Location: Seattle, Vancouver
|
Quote:
Screw the dealer. Sell private. |
|
Appreciate
0
|
08-21-2012, 04:30 PM | #16 |
Lieutenant Colonel
85
Rep 1,663
Posts |
I fail to see the problem. The car is worth roughly 30k, the dealer is going to offer you 26k, which in theory gives him 4k profit. The floor space, rent, employees, detailing, online ad posting, etc. costs him money. Plus the fact that Ms can sit for a while means that worst comes to worst he might have to let it go for 28k. This means his profit is really anywhere from 500 to 3k.
Same with Pawn stars. If the expert says it's worth 10k, that means they're going to list it for 8-9k because they want to sell it and not have it sit forever. They have a giant store with tons of employees + security, which means that they need to mark it up by roughly 40% just to make a profit. So the most they can pay you is about 6k. He might pay you more if the item is really interesting to him, or is prestigious for the store. Most people don't understand how retail works, and how big the markups are to stay in business. Clothing has a 100 to 200% markup for example. The markup on a brand new car is 10% on average. This means that the most you will likely be offered is 20% below retail on a trade in, as there is a lot more overhead (and less profit, since it's cheaper) on a used car. 30 * 80% == 24k. As others have mentioned if you want to get retail money for your car, sell it yourself.
__________________
|
Appreciate
0
|
08-21-2012, 04:39 PM | #17 |
instagram 997turbotom
296
Rep 7,381
Posts |
+ M roadsters are worth less than coupes
__________________
|
Appreciate
0
|
08-21-2012, 04:56 PM | #18 |
Lieutenant
16
Rep 421
Posts |
If a dealer offered you $28.5 its only because they're taking profit out of the car you're trading for and showing it as added money for your trade. 25-26k sounds about right given my experience over the last couple months working trade deals on my '07. I was about 2k below that and all three dealers offered the same amount. Like you, I wished it was more, but that seems to be all the money out there for these cars.
|
Appreciate
0
|
08-21-2012, 07:15 PM | #19 | |
Colonel
142
Rep 2,002
Posts |
Quote:
If you notice the only time they cite 30% auction fees is when the appraiser says the item "may" X price on a good day with the right buyer at auction. An items value is so nebulous as it is only worth what someone is willing to pay. I see Z4M's in the classified here all the time that "should" sell in a day, but sit there forever at what appears to be a very fair price. I would hope my 06 MR with 16K miles would be worth 27K, or so but I would only know if I put it up for sale and found out. There are no guarantees. |
|
Appreciate
0
|
08-21-2012, 07:46 PM | #20 | |
Colonel
63
Rep 2,128
Posts |
Quote:
|
|
Appreciate
0
|
08-21-2012, 08:22 PM | #21 |
Colonel
902
Rep 2,742
Posts |
Don't forget it's off season, your going to get better offers early in the spring as its better time to sell cars, as we move into fall and winter the car market dries up and dealers offer less as they are going to sit on the car for a while. As the market is no longer looking for a "summer car"
My dad owns a dealership and that's their practice. |
Appreciate
0
|
08-21-2012, 09:26 PM | #22 | |
///Multiple
2998
Rep 4,243
Posts
Drives: M4 Coupe | M3 | Z4M Roadster
Join Date: Jan 2011
Location: San Diego, CA
iTrader: (1)
Garage List 2006 BMW Z4 M Roadster [8.81]
2016 BMW M4 Coupe ( ... [10.00] 2018 BMW M3 (Euro D ... [0.00] 2011 BMW 335is Coup ... [10.00] |
Quote:
Please explain how trading in a vehicle gives you any kind of tax advantage.
__________________
The Coupe: 2016 M4 | Sakhir Orange | Black Full Merino Leather | CF Trim | M-DCT | More | ED 5/13/16
The Sedan: 2018 M3 | San Marino Blue | Black Full Merino Leather | CF Trim | M-DCT | ZCP | ED 7/18/18 The Roadster: 2006 Z4 | Interlagos Blue | Black Extended Nappa Leather | Carbon Leather Trim | Purchased 7/19/12 |
|
Appreciate
0
|
Post Reply |
Bookmarks |
|
|