[Dfwfairy]

I received an email from the dealer this week offering to buy back my 2019 5-series with a complimentary equity review. It also offers to upgrade my current vehicle to a newer model. Anybody knows how this works?

[MOTOP]

Originally Posted by Dfwfairy

I received an email from the dealer this week offering to buy back my 2019 5-series with a complimentary equity review. It also offers to upgrade my current vehicle to a newer model. Anybody knows how this works?

How this works?

First they lowball you with some ridiculous number - much lower than you would've gotten from Carmax (for example) if they bought it from you.
Then, depending on your reaction, they may gradually increase that number.

That's what happened to me.

Nowadays the rule of thumb is this: if your car is in decent shape - NEVER return it to a dealer if you lease.

Read those latest articles off CNBC when they say that the car rental companies stopped buying new cars and switched to buying [excellent / low mileage] cars from dealers and auctions.

So basically the dealer will look at your car. If it has low miles and is in decent shape - they'll try to walk you into a trap by offering you zero-to-nothing.
Don't fall into this crap. Try Carmax (or alike) first.

[AlteBMW]

A sales ploy. What does "complimentary equity review" mean? It means they will tell you what your car is worth in a trade. Usually, these deals make absolutely no sense.

[Dfwfairy]

I appreciate your insight. Definitely helps.

[LogicalApex]

I assume this is a lemon law buyback or something similar?

I haven't been through this I know SteveInArizona has so he will have much better insight. I wouldn't treat this as a trade in or anything similar. You'd be at a MINIMUM expecting private party values since you're not trading the car in (similar to what you'd expect from insurance if totaled). I'd also expect a cream puff added on top to keep you brand loyal.

[Wivenhoe]

Don’t know about the market in the US but here in the UK second hand values are the pits. The best I can get as a px against a new car is £ 26k. The car cost (after almost £ 10k discount) £ 56k in Nov 19. So a loss of £ 30k in 19 months. Hopefully the market for used 530e’s is stronger in the US.

[LogicalApex]

Originally Posted by Wivenhoe

Don’t know about the market in the US but here in the UK second hand values are the pits. The best I can get as a px against a new car is £ 26k. The car cost (after almost £ 10k discount) £ 56k in Nov 19. So a loss of £ 30k in 19 months. Hopefully the market for used 530e’s is stronger in the US.

US prices are all up over normal in the used market due to a lack of car supply overall. That should persist for the next 5 years at least, but perhaps the next decade as even with the pandemic subsiding chip and component shortages will keep supply depressed.

Additionally, the US market doesn’t order cars by and large and people prefer lot buying historically. So the American market is more sensitive to supply shocks. My understanding is ordering is normal in Europe so people make be more willing to wait for a car instead of buying a used one instead.

[Joe-BMW33]

Originally Posted by LogicalApex

I assume this is a lemon law buyback or something similar?

I haven't been through this I know SteveInArizona has so he will have much better insight. I wouldn't treat this as a trade in or anything similar. You'd be at a MINIMUM expecting private party values since you're not trading the car in (similar to what you'd expect from insurance if totaled). I'd also expect a cream puff added on top to keep you brand loyal.

Nah, it's spam, simple as that. They either call you or send you a form letter. Usually, says "there is a shortage of 2018 530e's and we want your car" "we are prepared to give you 125% of fair market value". It's called churning. They just want to get you in, but as others have noted, they will give you pennies on the dollar for the car.

[LogicalApex]

Originally Posted by Joe-BMW33

Nah, it's spam, simple as that. They either call you or send you a form letter. Usually, says "there is a shortage of 2018 530e's and we want your car" "we are prepared to give you 125% of fair market value". It's called churning. They just want to get you in, but as others have noted, they will give you pennies on the dollar for the car.

Ah, I read too much into the word buyback there. Yeah those are usually something akin to robbery where they'll be lowballing the trade and bending you over on the buy side too.

[claykin]

Typically those letters come with a jar of Vaseline. Check yours.

[Bob in IL]

Originally Posted by Joe-BMW33

Nah, it's spam, simple as that. They either call you or send you a form letter. Usually, says "there is a shortage of 2018 530e's and we want your car" "we are prepared to give you 125% of fair market value". It's called churning. They just want to get you in, but as others have noted, they will give you pennies on the dollar for the car.

Yeah they are. I've been getting regular mailings and emails from the two dealerships here I bought our 5 Series and X3. Similar formats - "We want your car!!" etc..

[SteveinArizona]

Originally Posted by LogicalApex

I assume this is a lemon law buyback or something similar?

I haven't been through this I know SteveInArizona has so he will have much better insight. I wouldn't treat this as a trade in or anything similar. You'd be at a MINIMUM expecting private party values since you're not trading the car in (similar to what you'd expect from insurance if totaled). I'd also expect a cream puff added on top to keep you brand loyal.

No...this is not a lemon law kind of thing. This is dealerships trying to get relatively recent cars for resale and at the same time sell you a new one. I have been getting regular emails from my dealership offering to buy back my 530e with a ridiculous price which they call good.

The best place for these emails and letters is the circular file.

[akuwes710]

Aside from being a one stop shop to sell and buy car, nothing else is remotely beneficial to do this

[AlteBMW]

I have gotten repeated offers of this kind over the past several years and in each case, the "offer" was to buy my car for well below market value, and even well below trade-in value. The strangest was when I got repeated "offers" from my dealer to buy my "Alpina B7". But I did not have an Alpina B7; it was a '17 750, which is a very nice car but not an Alpina. You would have thought that the VIN would have told them that. It is a way to get people engaged and thinking about a new car. Anyone who would accept such an offer should have their head examined.

[ted99]

I had a second "stripper" 2020 530e that became unnecessary after Covid. I sold it to CarMax (checked the other on-line sites too) when it was one year old for more than I paid, after the Fed and TX rebates back in Jan. A week later, Carvana came back and upped their offer by $1000. Seller's market, now. Dealers will be the worst price offered.