Worst re-sale value EVER!

tennistodd · 04-10-2009, 03:37 PM

I have owned my 135i for 10 months now after buying it brand new. I have entertained the thought trading. I have 20,000 miles on it and it has been very well maintained and is loaded with all the options other than nav. I paid $42,000 which was sticker and now I'm told by a few dealers that it is worth only about $30,000 as a trade? I feel like I'm grabbing my ankles!! This is just about as bad as buying a ford taurus! I have owned 3 Lexus in the past with this being my first BMW. Is this normal to lose this much money on a new BMW?

Add1ct · 04-10-2009, 03:44 PM

rule of thumb is it loses 30% the moment you drive it off the lot, at least that's an old saying I've heard. but yes, especially in this economy don't expect to get a whole bunch for it, if the economy were still booming then it would probably be more like 34k

lib · 04-10-2009, 03:52 PM

Unless you traded in your 3 Lexus within the first year of ownership at a time when barely anyone was buying cars you can't necessarily compare the two.

There are a few factors you need to account for:
- The first year of depreciation is always a killer but the rate at which it depreciates decreases over time.
- With the current new car market you could buy that same car for a lot less than $42k today.
- You can do better than a dealership trade-in. They have to spend money to get it ready for resale and they also need a profit. When those are added on top of the 30k you start coming a bit too close to the new car price to make the 20k milage worth it.

1013mm · 04-10-2009, 03:53 PM

so what did you expect in this econ?

jkp1187 · 04-10-2009, 05:05 PM

Quote:

Originally Posted by tennistodd

I have owned my 135i for 10 months now after buying it brand new. I have entertained the thought trading. I have 20,000 miles on it and it has been very well maintained and is loaded with all the options other than nav. I paid $42,000 which was sticker and now I'm told by a few dealers that it is worth only about $30,000 as a trade? I feel like I'm grabbing my ankles!! This is just about as bad as buying a ford taurus! I have owned 3 Lexus in the past with this being my first BMW. Is this normal to lose this much money on a new BMW?

Entertaining the notion of trading after owning a car less than one year is always a bad financial move. If trading in that short a period of time, the first question on everyone's lips will be: what's wrong with it?

Mad Dragon · 04-10-2009, 05:49 PM

What does this have to do with maintenance/service/warranty?

G5Ti · 04-10-2009, 05:59 PM

Barring the economy, the first-year depreciation, and the fact that the 1-series is an entirely unknown and unproven car (to the USA), you have to accept the very simple truth: you paid sticker and then drove the car 20k miles in less than a year!

No way in heck I'd pay more than $30-32 for a 10-month old 135 with 20k miles. Most wouldn't. Your warranty is nearly half-over; makes much more sense to negotiate a good deal on a new 135 or look for a CPO or even just one with fewer miles.

In short, I think $30k for trade-in seems right on-track.

syenisch · 04-10-2009, 06:21 PM

How did you get every option except Nav for $42k sticker?

BForbes · 04-10-2009, 06:27 PM

Quote:

Originally Posted by Mad Dragon

What does this have to do with maintenance/service/warranty?

I agree. To pricing thread we go!

ZedClever · 04-11-2009, 06:26 AM

20K miles in 10months? this economy and your surprised?

ptack · 04-11-2009, 08:23 AM

Unless they have to sell due to a job loss, there isn't any financial intelligence being demonstrated here at all. If you're just jumping between cars because you get bored, and then complain how costly that can be, well - duh.

InsaneSkippy · 04-11-2009, 09:02 AM

I've heard that the smell of troll will greatly reduce resale value.

andrew9223 · 04-11-2009, 09:31 AM

im just going to put this out there. I bought a 135 black sapphire, shadow trim, sport/M/premium packs with red leather and steptronic with 5k miles for $32k US a month ago. It was a dealer demo so I bought it as new.

BForbes · 04-11-2009, 09:36 AM

Quote:

Originally Posted by andrew9223

im just going to put this out there. I bought a 135 black sapphire, shadow trim, sport/M/premium packs with red leather and steptronic with 5k miles for $32k US a month ago. It was a dealer demo so I bought it as new.

Wowza! That was a great deal IMO.

Its always a good feeling saving $10,000.

BMW_x5_Msport · 04-11-2009, 11:10 AM

20K miles in 10 months, thats alot of miles i had my car for 7months and i only have 3k

Rawhide · 04-11-2009, 01:09 PM

A. The economy is crap
B. You have a boatload of miles
C. The first year is the worst for depreciation

Bringinthewolf · 04-11-2009, 02:01 PM

Quote:

Originally Posted by InsaneSkippy

I've heard that the smell of troll will greatly reduce resale value.

dbtheo · 04-11-2009, 02:19 PM

Quote:

Originally Posted by ZedClever

20K miles in 10months? this economy and your surprised?

agreed...

I would have to also agree that it is actually a very strong trade in, compared to what you paid. You have to figure they would sell the car for around $33-$34k as a CPO. So your talking less than a ten grand difference between that & new. Very fair imo

wmo168 · 04-12-2009, 02:40 AM

Probably $42k he factor in the taxes he pay and dealer fees on the car.

OverBoostinBimmers · 04-12-2009, 12:50 PM

This is a wholesale value, NOT retail value. 98% of New Car Dealers today get there pricing from "Manheim" which is the national auto auction. All the dealers are connected to Manheim and they are able to see what other cars similar to your own, is being sold for across the country. Keep in mind, the is WHOLESALE pricing. Now, the dealer will turn around and price your car at 15-20% more then what they gave you for it. They make more $$$ on used cars, then they do on new cars, a lot more.

Companies like Kelly, Edmunds, and my fav NADA are really no where near these Manheim prices. Great for the dealer, BAD for you. Of course the dealer is going to go with the lowest value they can find on a vehicle. When you run into this situation, remember when "working in the dealer" you now have (2) areas where you need to look, the price of your trade and the price of your new car your looking to purchase. There is absolutley NO reason your shouldn't get your new car @ or BELOW invoice. Most cases you will have a total of $2500-$4000, if not more(depending on the make/model), between both the new car and used car prices.

Hope this helps explain a little. If you have any questions regarding this, please pm me. I'll be glad to look at your deal too, before you take delivery to make sure your not F*** in the Ass Dry

Goodluck...

ORIGIN M. · 04-12-2009, 04:56 PM

Go try and trade-in your 10 month old Lexus/Toyota, and see if you don't have to bend over as well. The whole market is down!

shodanusmc · 04-12-2009, 05:44 PM

Also remember, they are or were selling with up to the first 2 months payments made by BMW and 3.9 Financing, as well as close to Invoice pricing. The over all market is weal. Try selling to a private party. You lose the most the minute you drive it off the lot.

Look at what you can buy a new 09 Z06 for.....some have discounts up to 15K.....

04-10-2009, 03:37 PM	#1
tennistodd Second Lieutenant 43 Rep 241 Posts Drives: 2018 alpine white M2 LCI Join Date: Jun 2008 Location: Tennessee iTrader: (1)	Worst re-sale value EVER! I have owned my 135i for 10 months now after buying it brand new. I have entertained the thought trading. I have 20,000 miles on it and it has been very well maintained and is loaded with all the options other than nav. I paid $42,000 which was sticker and now I'm told by a few dealers that it is worth only about $30,000 as a trade? I feel like I'm grabbing my ankles!! This is just about as bad as buying a ford taurus! I have owned 3 Lexus in the past with this being my first BMW. Is this normal to lose this much money on a new BMW?
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04-10-2009, 03:44 PM	#2
Add1ct Lieutenant Colonel 59 Rep 1,859 Posts Drives: 135i, 335i Join Date: Sep 2008 Location: Palos Verdes Estates (SoCal) iTrader: (3)	rule of thumb is it loses 30% the moment you drive it off the lot, at least that's an old saying I've heard. but yes, especially in this economy don't expect to get a whole bunch for it, if the economy were still booming then it would probably be more like 34k __________________ E82 N54 6MT 6FL 668 KASW turned in E92 Crimson/Cream N54 6MT, ZSP, ZPP, ZCW, Nav, Sat radio, HD Radio, Logic7, PDC, Active Steering, Active Cruise, 6FL, CA
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04-10-2009, 03:52 PM	#3
lib Major 141 Rep 1,401 Posts Drives: <This space for rent> Join Date: Apr 2008 Location: ATX iTrader: (0)	Unless you traded in your 3 Lexus within the first year of ownership at a time when barely anyone was buying cars you can't necessarily compare the two. There are a few factors you need to account for: - The first year of depreciation is always a killer but the rate at which it depreciates decreases over time. - With the current new car market you could buy that same car for a lot less than $42k today. - You can do better than a dealership trade-in. They have to spend money to get it ready for resale and they also need a profit. When those are added on top of the 30k you start coming a bit too close to the new car price to make the 20k milage worth it.
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04-10-2009, 03:53 PM	#4
1013mm aka 1013MM 1257 Rep 9,545 Posts Drives: pokingly flush Join Date: Jan 2009 Location: Los Angeles / HK iTrader: (7) Garage List 2009 135i [8.26]	so what did you expect in this econ? __________________ -John Project YOSHI Sale Thread
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04-10-2009, 05:49 PM	#6
Mad Dragon . 27 Rep 932 Posts Drives: 2010 GTI Join Date: Mar 2008 Location: MD iTrader: (0)	What does this have to do with maintenance/service/warranty?
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04-10-2009, 05:59 PM	#7
G5Ti Purveyor of fine roads. 17 Rep 339 Posts Drives: 2008 BMW 128i Join Date: Mar 2008 Location: Ohio iTrader: (0)	Barring the economy, the first-year depreciation, and the fact that the 1-series is an entirely unknown and unproven car (to the USA), you have to accept the very simple truth: you paid sticker and then drove the car 20k miles in less than a year! No way in heck I'd pay more than $30-32 for a 10-month old 135 with 20k miles. Most wouldn't. Your warranty is nearly half-over; makes much more sense to negotiate a good deal on a new 135 or look for a CPO or even just one with fewer miles. In short, I think $30k for trade-in seems right on-track. __________________ 128i alpine \| coral \| premium \| sport \| cold \| xenons \| ipod+usb
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04-10-2009, 06:21 PM	#8
syenisch Captain 111 Rep 810 Posts Drives: 2015 435i Gran Coupe Join Date: Jun 2008 Location: Winter Garden, FL iTrader: (1)	How did you get every option except Nav for $42k sticker?
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04-11-2009, 06:26 AM	#10
ZedClever Private First Class 4 Rep 109 Posts Drives: 09 135i space grey/black Join Date: Mar 2009 Location: Charlotte, NC iTrader: (0)	20K miles in 10months? this economy and your surprised?
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04-11-2009, 08:23 AM	#11
ptack Brigadier General 269 Rep 4,470 Posts Drives: 135i Join Date: May 2008 Location: NJ iTrader: (0) Garage List 2008 135i [6.50]	Unless they have to sell due to a job loss, there isn't any financial intelligence being demonstrated here at all. If you're just jumping between cars because you get bored, and then complain how costly that can be, well - duh. __________________ 135i, SGM, Coral, Sport Package, Auto, Premium Hifi, USB/ipod, Apex EC-7s, PPK Stage II
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04-11-2009, 09:02 AM	#12
InsaneSkippy Lieutenant Colonel 79 Rep 1,597 Posts Drives: 135i Join Date: Jul 2007 Location: Florida iTrader: (1)	I've heard that the smell of troll will greatly reduce resale value. __________________
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04-11-2009, 09:31 AM	#13
andrew9223 Enlisted Member 1 Rep 39 Posts Drives: 135 Join Date: Mar 2009 Location: space iTrader: (0)	im just going to put this out there. I bought a 135 black sapphire, shadow trim, sport/M/premium packs with red leather and steptronic with 5k miles for $32k US a month ago. It was a dealer demo so I bought it as new.
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04-11-2009, 11:10 AM	#15
BMW_x5_Msport Lieutenant 107 Rep 494 Posts Drives: x5f15 Join Date: Jul 2008 iTrader: (0)	20K miles in 10 months, thats alot of miles i had my car for 7months and i only have 3k __________________ 135i jet black coral red Galacier silver aluminum cold weather package premium package sport package comfort access premium hi-fi system navigation that plays dvds real time trafic ect. ipod,hd,sat,
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04-11-2009, 01:09 PM	#16
Rawhide Captain 364 Rep 794 Posts Drives: 2022 M340ix Join Date: Nov 2008 Location: USA, KC iTrader: (0)	A. The economy is crap B. You have a boatload of miles C. The first year is the worst for depreciation
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04-12-2009, 02:40 AM	#19
wmo168 Lieutenant 41 Rep 584 Posts Drives: Need one! Join Date: Feb 2009 Location: South Florida iTrader: (0)	Probably $42k he factor in the taxes he pay and dealer fees on the car.
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04-12-2009, 12:50 PM	#20
OverBoostinBimmers Banned 3 Rep 33 Posts Drives: 08 335i 09 135i Join Date: Apr 2009 Location: East Coast iTrader: (0)	This is a wholesale value, NOT retail value. 98% of New Car Dealers today get there pricing from "Manheim" which is the national auto auction. All the dealers are connected to Manheim and they are able to see what other cars similar to your own, is being sold for across the country. Keep in mind, the is WHOLESALE pricing. Now, the dealer will turn around and price your car at 15-20% more then what they gave you for it. They make more $$$ on used cars, then they do on new cars, a lot more. Companies like Kelly, Edmunds, and my fav NADA are really no where near these Manheim prices. Great for the dealer, BAD for you. Of course the dealer is going to go with the lowest value they can find on a vehicle. When you run into this situation, remember when "working in the dealer" you now have (2) areas where you need to look, the price of your trade and the price of your new car your looking to purchase. There is absolutley NO reason your shouldn't get your new car @ or BELOW invoice. Most cases you will have a total of $2500-$4000, if not more(depending on the make/model), between both the new car and used car prices. Hope this helps explain a little. If you have any questions regarding this, please pm me. I'll be glad to look at your deal too, before you take delivery to make sure your not F*** in the Ass Dry Goodluck...
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04-12-2009, 04:56 PM	#21
ORIGIN M. Banned 3161 Rep 9,134 Posts Drives: ///M Join Date: Oct 2007 Location: Northern Hemisphere iTrader: (0)	Go try and trade-in your 10 month old Lexus/Toyota, and see if you don't have to bend over as well. The whole market is down!
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04-12-2009, 05:44 PM	#22
shodanusmc Captain 21 Rep 774 Posts Drives: 09 135 Vert Join Date: Feb 2009 Location: Chicago burb iTrader: (0)	Also remember, they are or were selling with up to the first 2 months payments made by BMW and 3.9 Financing, as well as close to Invoice pricing. The over all market is weal. Try selling to a private party. You lose the most the minute you drive it off the lot. Look at what you can buy a new 09 Z06 for.....some have discounts up to 15K.....
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