Dissapointing trade values

[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.

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.

Wow,ok,that is significant. I suppose, again, it depends on which model it is. I've spoken to a few guys and none of them have been offered anywhere close to what they either paid or owed on their RS4's,but I suppose that's where the catch lies,in the model. I've only ever made money or broken even once on a BMW,and that was my 97 328i,but then it was immaculate. I feel your pain on that Mike,wow, that's less than half of what you paid.

 

[Sabretooth tiger]

Another thing to add.

I am always hard ball when trading a car in, its worked thus far. If a trade value is R5. I insist on getting R5 for it, or I walk away. And make sure when I get my R5, the car I am buying does not go from R10 to R15.

This of course wont work if you desperate to sell or trade and put yourself at the mercy of the dealer.

 

[craigNbmw729]

Agree! If there is a better way to avoid these shark dealers, the best option would be selling it privately. The risk is greater, though. Best of luck mate!

 

[zaleonardz]

Sorry Mike,

You raised another very very valid poitn, you do NOT pay for extra's.

If a guy spins you this "it has a 30k factory nav option", but I will discouint it to 10k, you are going to get screwed.

DO NOT PAY for extra's, because you will not get paid for extra's...

 

[Johnny8Bit]

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.

Yes, there are costs involved with running a business, any business.
There are risks, overheads, capital outlay etc. This is your gamble when running a business.
Using this as justification for passing every last cent onto the consumer, with profit on top of it, doesn't automatically not make you a shark.
Capitalism is greedy by it's very nature and people will try and get away with as much as they possibly can. Fact.

So you are right about learning how to play the game, unfortunately we need to or we get milked for everything we have.

As for breaking even after 2 years, absolutely, but what is the definition of breaking even? Paying bank interest and reducing the capital amount just enough to be able to trade the car without paying in?

 

[M3KW]

From what I remember, trade in works only on the vehicle and not on optional extras, or so I was told. I remember a report sometime in the past saying that BMW's in general depreciate faster. Private sale is always the best to go though because then the buyer has a look at all the options.

 

[Bugger]

Sorry Mike,

You raised another very very valid poitn, you do NOT pay for extra's.

If a guy spins you this "it has a 30k factory nav option", but I will discouint it to 10k, you are going to get screwed.

DO NOT PAY for extra's, because you will not get paid for extra's...

Agreed, it's like a pool actually doesn't add value to a house. Extra's are exactly that, extras. If the original owner chose to by a car with all the conceivable extras, that was their loss,not the loss of the person buying the vehicle used,um,sorry,pre-owned. When they look at the book value in those little dealer books,in there it says nothing about what extras are loaded on the car,it gives a base price based on year.

 

[MikeR]

:idea: I learnt the hard way. I will only buy specialized animals like my Zed now because of the machine it is.
But normal cars - forget - I will buy second hand low mileage as its just a run around - not brand concious anymore for that.

In fact the whole car market has become a very risky business (for a buyer) the losses involved is horendous - especially as you say with regards to optional add ons. :thumbdo:

@Bugger yip the guys lost a lot on those RS4's also (fantastic machines) - but its a stigma thats attached to all performance machines - everyone thinks that they get ridden into the ground.

 

[Sabretooth tiger]

I am actually done with the constant buying and selling, its not as easy and safe as it used to be.

Thus I chose to buy a low mileage car, and as I go along I am modding it cosmetically to my taste. will pay it off and drive her till the wheels fall off.

 

[Bugger]

:idea: I learnt the hard way. I will only buy specialized animals like my Zed now because of the machine it is.
But normal cars - forget - I will buy second hand low mileage as its just a run around - not brand concious anymore for that.

In fact the whole car market has become a very risky business (for a buyer) the losses involved is horendous - especially as you say with regards to optional add ons. :thumbdo:

@Bugger yip the guys lost a lot on those RS4's also (fantastic machines) - but its a stigma thats attached to all performance machines - everyone thinks that they get ridden into the ground.

Yup, they do have that reputation Mike. And for those of us that actually looked after our cars, we lose out. It's the same as being penalised on your insurance because there are youngsters out there writing cars off.

So you can do it one of two ways,you can drive the best deal possible by negotiating hard,or accept that you will make a loss.

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I am actually done with the constant buying and selling, its not as easy and safe as it used to be.

Thus I chose to buy a low mileage car, and as I go along I am modding it cosmetically to my taste. will pay it off and drive her till the wheels fall off.

I did this with my wife's Alfa 147 (which hasn't given us a days issue mind you). It had 47,000kms on the clock when I bought it, got it at a decent price and took it over 3 years. The car is paid off in March. It now has 57,000kms on the clock and is worth MORE than when I bought it because you cannot find an Alfa 147 with the same mileage at that age (it's a facelifted 2005 model). Lesson learnt. That's why I won't buy a car over 6 years and wouldn't advise it to anyone.