Final Numbers on 550i...still worth it?
03-10-2010, 10:24 PM
#13
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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.
03-10-2010, 11:43 PM
#14
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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?
03-11-2010, 03:54 AM
#15
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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)
03-11-2010, 04:05 AM
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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.
03-11-2010, 04:24 AM
#17
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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?
03-11-2010, 04:34 AM
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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?
03-11-2010, 04:37 AM
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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.
03-11-2010, 04:47 AM
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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.