Trade-in value plummeting?
07-06-2009, 12:21 PM
#21
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My Ride: 04 525i, 04 Dinan M3
Great, Im looking to sell mine maybe and I have 67k miles. I'm debating to sell now, or how much lower it could go if I wait. 
07-06-2009, 02:32 PM
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Originally Posted by v_therussian' post='933709' date='Jul 6 2009, 02:29 AM
Somehow it just sounds more and more like what you really SHOULD do is learn how the dealerships work. Sorry for being blunt, but you're at the sucker level right now - just going by your posts in this thread - so do try not to post too many of these alertist little threads, like this one, before you know what is really going on.
I've worked as a salesman and later as a general manager for both - new and used car dealers and I can tell you with as much authority as my 3 years experience allows me, that a customer like you gets taken EVERY time. You walk into my showroom and tell me your dealer offered you 10 grand for you car, I'd immediately give you 18k just so that you think I'm the nicest guy out there. And I'll get my money out of you flipping you on financing/leasing, forcing you to buy stuff you don't really need, overcharging you for a cheaper car - there are so many tricks to get your money... actually, come to think of it, so many tricks that anyone low-balling you on a trade-in is just a dumb inexperienced rookie, who thinks he'll take you on everything - the trade-in, the financing, the new car, the extras... people get greedy working sales - its a habit. The point is though, YOU, amigo, need to get through some serious reading before you go see another dealer.
AND STOP POSTING THESE THREADS THAT ONLY SCARE OTHER PEOPLE INTO THINKING THAT THE VALUE OF OUR CARS HAS UNEXPLICABLY PLUMMETED. AS A MATTER OF FACT, YOU SHOULD NOT EVEN BE USING THE WORD "PLUMMET" !!! At the very least, not until you learn to negotiate a true $0 down lease or secure third party financing.
I've worked as a salesman and later as a general manager for both - new and used car dealers and I can tell you with as much authority as my 3 years experience allows me, that a customer like you gets taken EVERY time. You walk into my showroom and tell me your dealer offered you 10 grand for you car, I'd immediately give you 18k just so that you think I'm the nicest guy out there. And I'll get my money out of you flipping you on financing/leasing, forcing you to buy stuff you don't really need, overcharging you for a cheaper car - there are so many tricks to get your money... actually, come to think of it, so many tricks that anyone low-balling you on a trade-in is just a dumb inexperienced rookie, who thinks he'll take you on everything - the trade-in, the financing, the new car, the extras... people get greedy working sales - its a habit. The point is though, YOU, amigo, need to get through some serious reading before you go see another dealer.
AND STOP POSTING THESE THREADS THAT ONLY SCARE OTHER PEOPLE INTO THINKING THAT THE VALUE OF OUR CARS HAS UNEXPLICABLY PLUMMETED. AS A MATTER OF FACT, YOU SHOULD NOT EVEN BE USING THE WORD "PLUMMET" !!! At the very least, not until you learn to negotiate a true $0 down lease or secure third party financing.
07-06-2009, 02:34 PM
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Originally Posted by bars_sun' post='933975' date='Jul 6 2009, 11:18 AM
Just to get real facts. Here is what dealers pay on the auction for your car (2004 525 with 50k miles)
For Week Ending Jul 1
Above Average Below May 2009 Jan 2009 Jul 2008
Sale Price $17,872 $15,118 $12,364 $15,120 $14,114 $18,446
Mileage 37,721 74,438 111,155 76,011 71,902 54,335
Total Sold All 37 28 28 39
As you can see average price on the auction for the car in the average condition is $15k. Yes, car prices went down end last year, beginning of this year, but trend is that prices on used cars are rising
For Week Ending Jul 1
Above Average Below May 2009 Jan 2009 Jul 2008
Sale Price $17,872 $15,118 $12,364 $15,120 $14,114 $18,446
Mileage 37,721 74,438 111,155 76,011 71,902 54,335
Total Sold All 37 28 28 39
As you can see average price on the auction for the car in the average condition is $15k. Yes, car prices went down end last year, beginning of this year, but trend is that prices on used cars are rising
07-06-2009, 02:44 PM
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My Ride: 2005 BMW 545i, Titanium Silver. Bridgestone 760s on Weds Bavaria II 18" wheels, standard sport pack size. Sport, AT. Latest job - NGK Iridium IX plugs installed.
Just generally speaking dealerships are probably not looking for trade-ins..they have such an oversupply of new cars, and lease returns are flowing in. try to sell through autotrader or if that doesn't work out take to carmax for a quick appraisal.
07-06-2009, 05:16 PM
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Originally Posted by 149' post='933680' date='Jul 6 2009, 01:59 AM
Looking to trade my 2004 525i with 50,000 miles, in great shape inside and out. Has most options AS, ARS, Sport Package, and the good stuff.
I asked the dealer how much he would give me in trade for a new 2009 or 2010 5-Series. He said $12,000 if I paid the sticker price on the new 5.
They told me the value has "plummeted" due to the economy. I told him this was $8,000 under the Kelly Blue Book, and he told me the market has recently collapsed for used BMWs.
He said the KBB always lags "reality." I showed him a July 2nd print-out from the KBB site.
I walked over to a 2004 525 with fewer features than mine and 80,000 miles on the odometer on the same dealer's lot with a $24,999 price on the windshield.
Is there a decent, honest BMW dealer left?
I asked the dealer how much he would give me in trade for a new 2009 or 2010 5-Series. He said $12,000 if I paid the sticker price on the new 5.
They told me the value has "plummeted" due to the economy. I told him this was $8,000 under the Kelly Blue Book, and he told me the market has recently collapsed for used BMWs.
He said the KBB always lags "reality." I showed him a July 2nd print-out from the KBB site.
I walked over to a 2004 525 with fewer features than mine and 80,000 miles on the odometer on the same dealer's lot with a $24,999 price on the windshield.
Is there a decent, honest BMW dealer left?
If a car is worth 20K, they will offer you 15K and try to sell it for 25K. Assuming some haggling on both ends they will end up making 7-8K profit on the car, not bad.
Yes if you want to sell if at a fair price try craigslist, I have bought and sold all my cars, trucks and motorcycles thru CL, it's great. It may take some longer but eventually you'll sell it (assuming you're asking for a fair price and are willing to negotiate a bit)
07-06-2009, 05:28 PM
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Originally Posted by LeuS' post='934597' date='Jul 6 2009, 08:16 PM
If a car is worth 20K, they will offer you 15K and try to sell it for 25K. Assuming some haggling on both ends they will end up making 7-8K profit on the car, not bad.
Yes if you want to sell if at a fair price try craigslist, I have bought and sold all my cars, trucks and motorcycles thru CL, it's great. It may take some longer but eventually you'll sell it (assuming you're asking for a fair price and are willing to negotiate a bit)
Yes if you want to sell if at a fair price try craigslist, I have bought and sold all my cars, trucks and motorcycles thru CL, it's great. It may take some longer but eventually you'll sell it (assuming you're asking for a fair price and are willing to negotiate a bit)
but be careful though there are some guys out there from CL who try to screw you too
07-06-2009, 09:34 PM
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I don't know... Bible, Niche, How to lose a guy in 10 days
hahaha go on google and start searching, guys! You don't need any library, when you have the internet - use it to your advantage. I DO NOT WANT TO recommend any specific sites, but I can tell you need to learn:1. Determining fair market value of a car - one you have and one you're planning on getting.
2. Calculating finance/lease payments - this is KEY!!! Finding your own financing is KEY!!!!!!!!
3. Negotiating with a dealer
4. Sales strategies, upsells and so on - learn what's a scam, when you go to the dealer (psst, don't pay for "window etching"
)5. Take ALL the "bones" out of your tongue - i.e. learn to low-ball the hell out of the dealer.
6. Find out the right person to negotiate the deal with. Hint: usually either the fleet manager, if you can get to one, or the finance manager, or GM of the dealership is REALLY the person making the decision, so don't waste your time talking to salesmen.
Guys, I've learned all I know about it (which is far from 100% still!!!) over 3 years of working in the industry. And still, as a salesman, I did not know even 10% of what I know now. So basically, salesmen are useless pieces of skin - they're just there to butter up your a$$ for the finance manager to stick it to you. Only when I became a manager did I start learning how much money the dealer REALLY makes on every sale. And how crazy some of the deals are - appearing to have no money in it at all and cutting out the salesman and still f*cking the customer out of 3-4 grand. That's how it is - like it or not. Every dealer you go to will look at you and start thinking of ways to f*ck you as soon as you walk in - that's the business. That's why I don't go to showrooms and that's why I get my own financing. By the time you're asking some casual questions they already know what approach to use to hook you.
If I could somehow teach you one thing, I'd teach you this: BEFORE YOU GIVE YOUR MONEY, YOU CAN ALWAYS WALK AWAY AND GET THE SAME OR BETTER CAR FOR LESS MONEY SOMEWHERE ELSE. Don't leave deposits, don't give downpayments, don't even tip the doorman until you've gone over the financial agreement(s) and are CERTAIN that there's no funny business going on. Any dealer tells you that you don't see the contract until you are signing it can go f*ck themselves - they are looking to "flip you in the box" (switch you from one bank to another, or from one car to another - or some other switch at the LAST minute when you're insurance is already switched and you have no recourse)... ok, I'm tired of talking about it. If anyone has specific questions, ask me - here or PM. Just don't go thinking your car's residual value has unexplicably plummeted for no reason - used car prices are actually on the rise! And that's a fact!
07-06-2009, 09:39 PM
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PS do remember that dealer are in business to make money too, so don't be surprised if they won't sell you a car without making 1-3 grand on it. IMO it is fair to let the dealer have up to 1.5K on a REALLY good deal of a car. But normally, between 1 and 2 grand is ok. Anything above that, try to neg it down. Start negging at their loss - see if they can let go of some inventory at a loss, especially, if you're buying new.