Final Numbers on 550i...still worth it?
#13
Contributors
Join Date: Aug 2008
Location: Zoo York
Posts: 9,986
Likes: 0
Received 0 Likes
on
0 Posts
My Ride: Alpine White 2006 530Xi (SLD)
I'd be very cautious with any non-factory warranty. So much so, that actually, I personally wouldn't buy a 550 that doesn't have CPO warranty. But I'm overly cautious with these things.
It does sound like you're getting screwed on the trade-in as well - which isn't all that surprising, but still - you can probably get around 22k or more for it at a wholesale auction, so figure your dealer should throw the warranty in virtually free.
BTW warranties usually have a huge mark-up, so at 3200, I'm sure they have a few bucks to spare. All in all, sounds like the dealer is making a couple of grand on the 550, at least 2 more on the trade in and another grand or so on the warranty.
This comes up to about 5 grand profit on a sale - IMHO you should not give up that much money. It is fair to expect the dealer to make a grand, maybe 1500 - not more than that.
EDIT: Just looked up auction prices for 2007 550s - they go for about 28-29 grand with this kind of mileage. Do the math. I personally would NOT buy this.
It does sound like you're getting screwed on the trade-in as well - which isn't all that surprising, but still - you can probably get around 22k or more for it at a wholesale auction, so figure your dealer should throw the warranty in virtually free.
BTW warranties usually have a huge mark-up, so at 3200, I'm sure they have a few bucks to spare. All in all, sounds like the dealer is making a couple of grand on the 550, at least 2 more on the trade in and another grand or so on the warranty.
This comes up to about 5 grand profit on a sale - IMHO you should not give up that much money. It is fair to expect the dealer to make a grand, maybe 1500 - not more than that.
EDIT: Just looked up auction prices for 2007 550s - they go for about 28-29 grand with this kind of mileage. Do the math. I personally would NOT buy this.
#14
Members
Join Date: Feb 2010
Location: Sac
Posts: 84
Likes: 0
Received 0 Likes
on
0 Posts
My Ride: 2005 530i Premium Package
Dealers usually have a 100% mark up on aftermarket warranty so for $3,200, it only costs them $1,600, so there is definitely wiggle room. As for your trade in, the TL Type-s is pretty rare and I'm sure someone out there is willing to pay more in a private sale.
Why isn't the car CPO? Is it a BMW dealership?
Why isn't the car CPO? Is it a BMW dealership?
#15
Members
Thread Starter
Join Date: Mar 2010
Location: NYC
Posts: 19
Likes: 0
Received 0 Likes
on
0 Posts
Dealers usually have a 100% mark up on aftermarket warranty so for $3,200, it only costs them $1,600, so there is definitely wiggle room. As for your trade in, the TL Type-s is pretty rare and I'm sure someone out there is willing to pay more in a private sale.
Why isn't the car CPO? Is it a BMW dealership?
Why isn't the car CPO? Is it a BMW dealership?
It just has factory warranty to Jan 2011/50K (it's at 31K right now)
I didnt know extended warranty would cost so much (carchex.com, smartautowarranty.com)
#16
Contributors
Join Date: Mar 2009
Location: New York, New York
Posts: 10,301
Likes: 0
Received 0 Likes
on
0 Posts
My Ride: See my signature
I'd be very cautious with any non-factory warranty. So much so, that actually, I personally wouldn't buy a 550 that doesn't have CPO warranty. But I'm overly cautious with these things.
It does sound like you're getting screwed on the trade-in as well - which isn't all that surprising, but still - you can probably get around 22k or more for it at a wholesale auction, so figure your dealer should throw the warranty in virtually free.
BTW warranties usually have a huge mark-up, so at 3200, I'm sure they have a few bucks to spare. All in all, sounds like the dealer is making a couple of grand on the 550, at least 2 more on the trade in and another grand or so on the warranty.
This comes up to about 5 grand profit on a sale - IMHO you should not give up that much money. It is fair to expect the dealer to make a grand, maybe 1500 - not more than that.
EDIT: Just looked up auction prices for 2007 550s - they go for about 28-29 grand with this kind of mileage. Do the math. I personally would NOT buy this.
It does sound like you're getting screwed on the trade-in as well - which isn't all that surprising, but still - you can probably get around 22k or more for it at a wholesale auction, so figure your dealer should throw the warranty in virtually free.
BTW warranties usually have a huge mark-up, so at 3200, I'm sure they have a few bucks to spare. All in all, sounds like the dealer is making a couple of grand on the 550, at least 2 more on the trade in and another grand or so on the warranty.
This comes up to about 5 grand profit on a sale - IMHO you should not give up that much money. It is fair to expect the dealer to make a grand, maybe 1500 - not more than that.
EDIT: Just looked up auction prices for 2007 550s - they go for about 28-29 grand with this kind of mileage. Do the math. I personally would NOT buy this.
#17
Contributors
Join Date: Mar 2008
Location: new york
Posts: 5,073
Likes: 0
Received 0 Likes
on
0 Posts
My Ride: 2011, E90 M3 Sedan. Alpine White.Competition package, Keyhole cover, fender reflectors in Alpine white, RPI Exhaust, 19
i see your from nyc also.. what dealer are you dealing with if you dont mind me asking?
#18
Contributors
Join Date: Aug 2008
Location: Zoo York
Posts: 9,986
Likes: 0
Received 0 Likes
on
0 Posts
My Ride: Alpine White 2006 530Xi (SLD)
Dealers usually have a 100% mark up on aftermarket warranty so for $3,200, it only costs them $1,600, so there is definitely wiggle room. As for your trade in, the TL Type-s is pretty rare and I'm sure someone out there is willing to pay more in a private sale.
Why isn't the car CPO? Is it a BMW dealership?
Why isn't the car CPO? Is it a BMW dealership?
Yeah, so that we all know where NOT to go
#19
Contributors
Join Date: Mar 2009
Location: New York, New York
Posts: 10,301
Likes: 0
Received 0 Likes
on
0 Posts
My Ride: See my signature
I can't fault the dealer for trying to make a buck. It is just incumbent on buyers to research what the dealer's true costs are, let the dealer know that you know what their costs are and then negotiate UP from that number.
#20
I just bought my 2007 550i on Tuesday. It has Nav, Sport, Comfort, Cold, Sunshade, Premium on it. It has 45k miles. I got it for 28.5, it is not a CPO car (had it checked my local BMW shop). I just picked up a BMW Platinum Warranty for 6/100 from the BMW dealer up the street which covers more then the CPO warranty for $3400. Total cost of the car 33k with a warranty that goes for another 2.5+ years and 53k miles.