Dissapointing trade values

[sherwinZ]

Had an itch for something I was keen on, so found a few good examples on autotrader and then proceeded to enquire at the dealers about trade in on the Z. After the first 2 attempts, was thoroughly depressed.... with figures coming in 30-40k below my settlement even..

I understand that there needs to be a profit made and extra "fat" for things that need to be fixed if there are comebacks from their buyers.. but that doesn't justify the ridiculous figures that are thrown back.

Worst trade in was from a BMW dealer!

Basically if your car is not free owned, what do you do ??

Also shocking resale values on newer models etc. Is it just acceptable to lose out 150k or so on a car you bought brand new?

 

[Legacy]

BMW will almost always give you the worst trade in. Your best bet is to sell the car privately for your settlement amount, given of course this amount is fair for the particular car.

 

[Sabretooth tiger]

BMW will almost always give you the worst trade in. Your best bet is to sell the car privately for your settlement amount, given of course this amount is fair for the particular car.

+1

 

[sherwinZ]

BMW will almost always give you the worst trade in. Your best bet is to sell the car privately for your settlement amount, given of course this amount is fair for the particular car.

Thought this was not legal ie. reselling a currently financed car?

 

[Sabretooth tiger]

BMW will almost always give you the worst trade in. Your best bet is to sell the car privately for your settlement amount, given of course this amount is fair for the particular car.

Thought this was not legal ie. reselling a currently financed car?

I done this twice before, all I did was notify the finance house of my intend. I remain binded to the contract until the settlement amount is paid in. then 3 days later got the papers and handed it to the new owner.

 

[Legacy]

My current car was financed by the previous owner. I paid him the cash, he handed over the car and signed a contract and so on. Around a week later I collected the registration documents from him. Well he actually brought them to my house. :rollsmile:

 

[sherwinZ]

Thanks Sabretooth tiger!

At least that gives me a good option.
Got a baby on the way., so the Z won't suite my needs now..

Still have another vehicle between the wife and myself, but rather have something baby friendly incase the need arises.!

 

[Johnny8Bit]

It is very legal to sell the car on your own.
Downside is some additional admin and the risk factor of not knowing who you are dealing with. This issue of dealers taking the piss out of book trade values has come up before, its nothing but greed. One thing I can say is to shop around, when I traded my old car a year and a half ago I did this extensively and found massive variances between what the various dealers were offering. Good luck.

 

[sherwinZ]

My current car was financed by the previous owner. I paid him the cash, he handed over the car and signed a contract and so on. Around a week later I collected the registration documents from him. Well he actually brought them to my house. :rollsmile:

:thumbs: now to convince myself to sell hehee.

 

[Sabretooth tiger]

One thing I can say is to shop around, when I traded my old car a year and a half ago I did this extensively and found massive variances between what the various dealers were offering. Good luck.

+1 I had that problem when I needed to sell my 323i, was offered silly prices, got the best price and deal for settlement amount, which was about R3000 under trade value at a dealership all the way in Vereeniging.

---

Thanks Sabretooth tiger!

At least that gives me a good option.
Got a baby on the way., so the Z won't suite my needs now..

Still have another vehicle between the wife and myself, but rather have something baby friendly incase the need arises.!

only a pleasure, glad I could be of assistance. :thumbs:

 

[Iceman007]

Shark these dealers. Bought my car 6 months ago 300k and went to a Ford garage just to see and 200k they will give me. there are curently to of the same model and spec and Mileage standing at Auto Atlantic for 300k. so they will make a profit of say 80k if they sell it for that price and they dont even have to worry about maintenance plan for the Motor plan is til 2014. So its clean profit for them
:nonono:

Ill sell mine privately when the time comes like I did with my previous BMW :thumbs:

 

[hiltonfa]

You will never get what you want from the dealers/stealers, rather try the private route :thumbs:

 

[MikeR]

:thumbdo: yip the BMW is bad for resale...so I got an AUDI as my second car, I lost too much money on my past 2 E90's.

 

[Bugger]

Audi resale value is worse than BMW,much much worse. I got R70k less than I owed on my Audi, and most of the guys on the Audi forum complain about resale values.

 

[zaleonardz]

No Guys,

This is the motor trade, it always works like this, it always will.

Its not the dealer being a shark, its every dealer being a shark, and the reason why the industry has such a bad name.

Just out of interest, the best trade on offer we got on my dads pathfinder was from BMW Alberante.

3 series cars are 30 to 40 behind book, it is so, deal with it

5 series is between 40 to as much as a 100k behind book

7 series, can be as much as 300k behind book (on a mil car)

an //M car retailing at 600k can easily go for 450k, thats 150k behind and the guy selling the car will only be offered 250k, so the numbers are scary.

However, if you keep this in mind, and you buy accordingly, with the above formula's in head, you will break even or win.

And if you guys think the dealer is a shark for wanting to make 50k on say an E60 //M, consider the following.

He has to take 250k out of his pocket today to pay for the car
Then spend 5k on recon as what you would on most cars to fix chips and stuff (specially in 3 year olds plus)+
Cover insurance, ect

So at the end of the day, he is sitting with over 250k of hard cash on the floor that may take anything from 1 day to 6 months to sell the car,

Then also be held accountable for every nigglie on a second hand car ect.

Anyway, point is, know the above ratio, keep it in mind when buying, and you will break even after 2 years.

 

[Bugger]

My experience is the more high end the car,the more of a gap between the settlement and the trade/book value. So you are more likely to make your money back or break even on a more common car than something like an ///M or 7 series. So I agree with the sentiment above. However, use it to your advantage when buying a high end car, cos the longer the dealer has it on his floor, the more desperate he becomes to sell it.....

 

[zaleonardz]

And for the love of god do not go buy a brand new 900k BMW X5 over 72 months with a 30% residual.

Please, pretty please with extra cheese...

 

[Andy1GP]

Don't be scared of a private sale. Take your time and place an add and get a nice contract to cover both of you. It's quite simple once you've done it. The risk and stress is always there at least you should be able to break even on the car and then move on.

The longer you wait the worse it's going to get. They don't sell as quickly as more practical cars do so give it time to sell and advertise early :thumbs:

 

[Bugger]

Residual is the worst thing next to a 6 year finance scheme, one of the reasons I lost so much on my Audi was a 6 year finance scheme. Rather, if you can, take the knock over 5 years or less, it will be worth it in the end. But residual is a bad, bad thing indeed! I asked for it when financing my M3 now and I am glad I didn't get it in the end.

---

Don't be scared of a private sale. Take your time and place an add and get a nice contract to cover both of you. It's quite simple once you've done it. The risk and stress is always there at least you should be able to break even on the car and then move on.

The longer you wait the worse it's going to get. They don't sell as quickly as more practical cars do so give it time to sell and advertise early :thumbs:

AND,most finance houses will finance private sales now if you both are strong candidates,and usually with the same benefits as if you were buying through a dealer. Banks know there is a HUGE private market out there and they are tapping into it. ABSA, Std Bank, MFC and FNB will all finance private deals.

 

[MikeR]

Audi resale value is worse than BMW,much much worse. I got R70k less than I owed on my Audi, and most of the guys on the Audi forum complain about resale values.

well heres a thought 2007 330d (with every concievable option) - Paid R460 - Got R220 in 2010 - 82000 on the car with MP still, imac condition (any guys that know me will know what Im like with my cars).
the second hand A4 Ive been offered the same as I paid, so Im happy with that. Every time I have traded my BMW's for another and lost more than 40% it dont make sense, and BTW Ive had BMWs from 1984 so its not the first by far.


BTW if you cannot take a car for under 5 years - YOU CANNOT aford it. do not by on any scheme - EVER.