Quote:
Originally Posted by johnnydad
Who is actually going to pay $45K? Certainly nobody on forums like these who like their discounts!
I recently sold an immaculate 3er with warranty, new RRP $92K. At the 4 year mark I was getting trade-in offers of $25-27K. 4 months later, the offers ranged from $22 to $25K. BMW approved cars in worse condition were being advertised for $42-44K, private sales were around the $37-40K mark.
I advertised for $36K, waited a couple of months and only had a trickle of interest with buyers wanting nearer $30K. I dropped the price and eventually sold for $32K which was 38% of my original discounted purchase price (or 34% of the RRP). I'd had the car detailed and a major service done to prepare for sale too.
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Wow ouch!!! $92k for a 320d is crazy!! For example a e92 335 when new with the options i got is roughly about $130k but after 5 years(2008) the going rate is about $50k-$60k depending on condition and mileage. Ofcourse before the balloon is due i'll try to sell the car in the private market hopefully will get more?
Quote:
Originally Posted by ttimbo
It's a forecast, and not a very accurate one.
You need to have a residual (balloon) that is reasonable in the market in five years time, bearing in mind that if you are buying new, and trading in, you'll be offered the wholesale valuation at best --- unless you are leaving a lot of money on the table in bargaining for your new car.
Over the last five years, the used car market in Australia has changed dramatically -- especially for Euro cars, largely because year-on-year, new car prices have dropped as our exchange rate appreciated. This is especially acute right now, and is further affected by competition especially in the M135i sector (A series, new S3, new GTI, Golf R, Scirocco etc).
In the face of that, I think you'd have to take a pretty deep breath and cross all fingers, toes, legs, eyes....if you think the M135i will have a market value of 50% of the current buying price. Far better to work out finance with a much lower (more realistic) residual, which -- as I said -- would be 30% max.
Alternatively, you can look at BMW's Full Circle offering, which guarantees a buyback value, but doesn't leave you with any equity (unless you are very lucky)
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Hmmm i understand what you are saying. I guess the other option is to keep the car and get a personal loan to pay of the balloon or like above try to sell it before the balloon is due.
Also with the BMW buy back guarantee, I dont quite understand how it works? As a customer do you pay more to have this option?
I just want to know how it works?
Thanks