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View Full Version : I guess this will be my last BMW


Andre
01-29-2007, 01:59 PM
I've had my 2006 X3 3.0i for 7 months now. While it has been flawless, it just doesn't give me the excitement that my old 330i ZHP did.

I thought I'd see how much of a depreciation hit I would endure after 7 months, and get an appraisal against a trade-in for a 335i.

In June, I paid $55K CAD. I've put 19K km (12K miles) on it, and the car is still perfect. Today I was told they would give me $35K CAD for it on a trade in. They didn't even bother going outside to look at the car - it was in their computer, since I had bought it from them.

I was kind of shocked to potentially lose $20K in 7 months. Are these cars that crappy that they lose 37% in the first year? I feel like maybe BMW isn't what I should be buying.

I am not impressed.

cbj
01-29-2007, 02:04 PM
I would think the dealer will pay you much less than you would get if you sold it privately. The dealer would give 4700 for my CRV and I sold it last week for 7000 without a problem.

chuck92103
01-29-2007, 02:07 PM
I've had my 2006 X3 3.0i for 7 months now. While it has been flawless, it just doesn't give me the excitement that my old 330i ZHP did.

I thought I'd see how much of a depreciation hit I would endure after 7 months, and get an appraisal against a trade-in for a 335i.

In June, I paid $55K CAD. I've put 19K km (12K miles) on it, and the car is still perfect. Today I was told they would give me $35K CAD for it on a trade in. They didn't even bother going outside to look at the car - it was in their computer, since I had bought it from them.

I was kind of shocked to potentially lose $20K in 7 months. Are these cars that crappy that they lose 37% in the first year? I feel like maybe BMW isn't what I should be buying.

I am not impressed.

If you buy any car and trade it in months later you will take a big hit. This is not just a BMW issue, it happens with all cars.

Plus, the market is flooded with gas guzzling SUVs. The last thing the dealer wants is another one on trade.

Hang on to the vehicle for 3-4 years and then make a switch. It is too soon now and you will take a big hit.

Andre
01-29-2007, 02:11 PM
The Canadian Black Book (trade-in prices) lists mine at $40,600. I think they did low-ball me.

philippek
01-29-2007, 02:19 PM
I don't think so; it's not in any business' best interest to piss off current customers. If you care to pursue it, take it to a couple of other dealerships (preferably non-BMW dealerships). I think you'll find the same story--and that is that cars depreciate most rapidly in the weeks and months after purchase.

AzNMpower32
01-29-2007, 02:49 PM
That's wierd, even the depreciation on our 2 year old X3 isn't that bad. Your dealer is low-balling you.

BMW has the strongest resale value in its class. If you think its bad on the X3, then wait till you buy something else.

clint
01-29-2007, 05:33 PM
Ouch! I paid around $63 CAD for mine in 04 and it has 21km on it now. I will be going back in to the dealer again on friday for more .....(we can never fix it the first time) repairs :mad: :mad: :mad: :mad: and i will ask what mine is worth on a trade.

SilverX3
01-29-2007, 05:57 PM
Bought my X3 for 61,000 AUD (Australia) and sold it 18 months later with 19,000km for 51,000

Not a good time to trade in your X3 due to :
- Dealer have full stocks of 07 X3 the last thing they want is an old model X3 that's why they gave you Sh..t money so you go away instead saying NO
- Beginning of the years : dealers have to get rid of MY06 cars so they have to clear their last years cars first that's their No 1 priority for Dec to Feb... their bonus depends on selling old stocks

You better off selling it privately

The good news is : a friend of mine bought a Sanssyong Rexton (Korean recycled Mercedes 4WD) they paid 56,000 AUD 12 months ago and they traded in and got only 27,000 AUD (less than 50% in 12 months).... Now that's SUX, really SUX

Brent P
01-29-2007, 10:24 PM
Actually, BMW's hold their value extremely well. Trading in at a dealer with any vehicle, however, is for saps. Dealers will never give you what the car is worth (market value) on a trade in. They will only give you the wholesale liquidation value (black book), after which they will put it on the lot and sell it for its true market value. Dealers actually make a much bigger margin by selling traded in cars than they do selling new cars. You can be guaranteed that if they give you $35K for the trade, it will be on the lot the next day for at least $45K. Never trade your car in at a dealer unless you want to take it up the rear... always sell it privately if you can.

Andre
01-30-2007, 03:36 AM
Actually, BMW's hold their value extremely well. Trading in at a dealer with any vehicle, however, is for saps. Dealers will never give you what the car is worth (market value) on a trade in. They will only give you the wholesale liquidation value (black book), after which they will put it on the lot and sell it for its true market value. Dealers actually make a much bigger margin by selling traded in cars than they do selling new cars. You can be guaranteed that if they give you $35K for the trade, it will be on the lot the next day for at least $45K. Never trade your car in at a dealer unless you want to take it up the rear... always sell it privately if you can.

I agree, however, they are not offering black book.
Typically when I trade in a car, the savings on taxes on the new car usually takes up most of the difference between selling privately and trading. Especially when you consider what you have to spend to make it pass a safety check - tires, brakes, etc.

In this case they are starting well below the black book value. Basically they're offering me the same as they offered on my last car, which was 3 years old. For my X3, they might have to clean and polish it, but it won't need anything done to meet their CPO standards. This would have been my 3rd car from that dealer.

I felt that they were being greedy. 37% in the first year is too much. 17% to 20% would have been punishemnt enough when trading toward the list price of a new car.

White05X3
01-30-2007, 06:00 AM
I agree they are being greedy. However they are entitled to try and make a profit. Just don't give them your hard earned money. All dealers are different...try another one.

Nick325xiT 5spd
01-30-2007, 06:07 AM
I agree, however, they are not offering black book.
Typically when I trade in a car, the savings on taxes on the new car usually takes up most of the difference between selling privately and trading. Especially when you consider what you have to spend to make it pass a safety check - tires, brakes, etc.

In this case they are starting well below the black book value. Basically they're offering me the same as they offered on my last car, which was 3 years old. For my X3, they might have to clean and polish it, but it won't need anything done to meet their CPO standards. This would have been my 3rd car from that dealer.

I felt that they were being greedy. 37% in the first year is too much. 17% to 20% would have been punishemnt enough when trading toward the list price of a new car.
20% in the first year? You're out of your ****ing mind.

1) In the first few years, the biggest depreciation hit in ANY car always comes the second you drive it off the lot.
2) The X3 has ****ty resale because it's a stupid vehicle that BMW shouldn't have made in the first place.
3) The condition of your car has only limited relevance to the trade-in value - there are two things that govern it: "Do we even want to try selling this thing?" and "What can we actually auction it for?"
4) The X3 3.0i is about to be replaced by the turbo version. Would you want to be stuck trying to sell a used 3.0i for nearly the same price
as a brand new one with LOTS more power?

cbj
01-30-2007, 07:34 AM
And the 2007 X3 has a lot of good upgrades which will hurt the resale value of the 2006 X3s

Anyway to me buying a car is like any other large purchase where you need to be a tough negotiator to get the best deal.

PhilH
01-30-2007, 10:01 AM
2) The X3 has ****ty resale because it's a stupid vehicle that BMW shouldn't have made in the first place.
:flipoff:

Yeah right, off the top of my head the X3 is: almost identical in size to the X5, costs thousands less than the X5, is more nimble than the X5, has a much bigger back seat than 3 Series touring, and costs thousands less than 5 Series touring.

Furthermore, the X3 is the fourth highest selling model line for BMW, behind the 3 Series, 5 Series and 1 Series. Seems to be selling alright and I'm sure it's turning a tidy profit so you can buy more of the cars you like from BMW.

What is your problem with the X3 again? Oh, that's right, you didn't say why it's a stupid vehicle that BMW shouldn't have made in the first place. Care to back up your opinion with some reasoning? :rolleyes:

Brent P
01-30-2007, 10:11 AM
:flipoff:

Yeah right, off the top of my head the X3 is: almost identical in size to the X5, costs thousands less than the X5, is more nimble than the X5, has a much bigger back seat than 3 Series touring, and costs thousands less than 5 Series touring.

Furthermore, the X3 is the fourth highest selling model line for BMW, behind the 3 Series, 5 Series and 1 Series. Seems to be selling alright and I'm sure it's turning a tidy profit so you can buy more of the cars you like from BMW.

What is your problem with the X3 again? Oh, that's right, you didn't say why it's a stupid vehicle that BMW shouldn't have made in the first place. Care to back up your opinion with some reasoning? :rolleyes:

Damn.. you beat me to it. The only thing I can add is that the X3 has defined the category "Sport" Utility Vehicle since it was introduced (or Activity Vehicle if you prefer BMW's term). It very quickly blew the sales of the X5 out of the water for the reasons you stated above. It's for people who want a "drivers car" and an SUV rolled into one.

They are in very high demand, new or used, but unfortunately Andre's dealer is trying to rape him.

PhilH
01-30-2007, 10:15 AM
Damn.. you beat me to it...
I'm sure his Subaru Impreza is a nicer car (or at least, he thinks it is). :rofl: :p

bimmer7
01-30-2007, 10:49 AM
I've had my 2006 X3 3.0i for 7 months now. While it has been flawless, it just doesn't give me the excitement that my old 330i ZHP did.

I thought I'd see how much of a depreciation hit I would endure after 7 months, and get an appraisal against a trade-in for a 335i.

In June, I paid $55K CAD. I've put 19K km (12K miles) on it, and the car is still perfect. Today I was told they would give me $35K CAD for it on a trade in. They didn't even bother going outside to look at the car - it was in their computer, since I had bought it from them.

I was kind of shocked to potentially lose $20K in 7 months. Are these cars that crappy that they lose 37% in the first year? I feel like maybe BMW isn't what I should be buying.

I am not impressed.


Who is this dealer...I live in the GTA region my-self and have different experiences with various dealers...:dunno:

I mean I think its the difference between your trade and the new 335i that you are trying to purchase.....you should negotiate on that...perhaps maybe they might discount you a little $ off the msrp...which might make it a good deal after all :rolleyes:

However, I do understand....where you are coming from.....I mean our friends and family have had 7's with V12s and those models suffer the hardest depreciation.....almost 45-50% when it comes to trading it in the first year :thumbdwn:

But I guess its true for most depreciating assests...especially cars...which you have to keep for a decent period of time before its time to trade it in.... in order to EQUALLY spread the cost of ownership over the period of ownership...:confused:

sayemthree
01-30-2007, 01:12 PM
There is nothing to gain and much to lose by only keeping a car for 7 months - thats bad financial decisions. especially with the reworked 2007 now available who would buy a 7 month old 2006. and remember if they give you 35 they will have to sell it for 40. I can buy a brand new loaded 2007 for $48 US.

as far as trade in my 99 528it trade in was valued at $12. I sold it for $19k private party.

Brent P
01-30-2007, 03:10 PM
... and remember if they give you 35 they will have to sell it for 40. I can buy a brand new loaded 2007 for $48 US.
Note that Andre is from Canada. BMW "dumps" cars on the U.S. market for far far less than they sell elsewhere. A fully loaded X3 3.0si in Canada will run $68K, which converts to about $58K U.S.

If they're giving him $35K on the 3.0i trade, you can be certain it will go onto the lot the next day for almost $50K, which is the going rate in Ontario for a 2006 X3 3.0i (everything on Autotrader is between $49 and 51K).

AzNMpower32
01-30-2007, 04:02 PM
They are in very high demand, new or used, but unfortunately Andre's dealer is trying to rape him.
That's right. My dealer (which has one of the largest CPO inventories) practically ran out of X3s to put in used inventory............and this was over the summer when demand is supposed to be low for SUVs. There were like, 3 X3s left in the CPO inventory at the end of August.

And (gasp) wouldn't you know, my dealer has no used X3s right now in stock. Wierdly enough they have 10 X5s. So clearly there's a demand. My dad always called the CPO X3s "overpriced" because they listed for $30-36k USD, but apparently people are buying them ;)

kjboyd
01-30-2007, 04:22 PM
2006 CPO X3a here in Sacramento area listing at $38-$42, most with 10-15,000 miles on them already.

JG
01-30-2007, 06:10 PM
20% in the first year? You're out of your ****ing mind.
2) The X3 has ****ty resale because it's a stupid vehicle that BMW shouldn't have made in the first place.


Thanks for that Darwinian moment.....:rolleyes:

Black_528isport
01-30-2007, 06:11 PM
take into consideration the fact that it is so close to the latest model why would someone purchase used unless it was VERY worthwhile. Its not that the car depreciated that much.. these cars hold their value very well. Its your timing... I happen to sell preowned luxury vehicles. and I know BMW dealers here in cinci are in high demand for X3 and are paying top dollar for them on trade. Other dealers are able to steal them from what they hope so be suckers... senf them to the auctions and get HUGE turn around with very little effort. My .02

Black_528isport
01-30-2007, 06:12 PM
thats the car business for ya.

Andre
01-30-2007, 07:10 PM
Thanks for all the comments folks. I'm still convinced they're "raping" me. 37% depreciation is for a 3 year old car, not a 7 month old car. I understand that the biggest amount of depreciation is in the first year (or first few months), but when they're selling in Auto Trader for high forties, then the dealer should be offering somewhere in the forties.

It's really simple though I guess. The dealer obviously doesn't value the years of business from me, and would rather take a chance losing me on a potential quick grab stemming from greed. These kinds of things will one day affect the dealer, as enough people walk away. They see a long-term customer as a potential sucker.

For the record, it's Otto's BMW in Ottawa.

Techson
01-31-2007, 05:54 AM
Andre, that the BMW dealers really only care about the big ticket purchasers... people who spend 200K every 1-2 years. Little guys like us, they don't care about. I've had experience with 4 dealers in different parts of the country and they all suck one minute after you buy the BMW.

dug01
01-31-2007, 06:22 AM
Andre, that the BMW dealers really only care about the big ticket purchasers... people who spend 200K every 1-2 years. Little guys like us, they don't care about. I've had experience with 4 dealers in different parts of the country and they all suck one minute after you buy the BMW.

I guess we are lucky to have a good dealer here--I purchased a used Z4 from a non BMW dealer with remaining factory warr--the BMW dealer treated me like I was a long time customer when I came in for scheduled maintenance--so I bought a new X3 from them. Others I chatted with in waiting lounge were happy with them also. Our area is full of BMW's this dealer sells up to 60 cars a month--:D

WHITEX
02-03-2007, 06:45 AM
I've had my 2006 X3 3.0i for 7 months now. While it has been flawless,I was kind of shocked to potentially lose $20K in 7 months. Are these cars that crappy that they lose 37% in the first year? I feel like maybe BMW isn't what I should be buying.

.

Not an exciting vehicle..agreed ...just a great ride, safe and a pleasure to own. I'd rather be driving my blown Mustang or LS2 powered Chevy SSR. But the X3 is a great DD.

They tell you how well BMW's hold their value. They didn't mention that it's when BMW resells it. We get raped on a trade in...But watch what they sell it for. It won't be cheap or a deal.

Andre
02-07-2007, 04:00 AM
Update: After sending a complaint email to the owner of the dealership, she got back to me and agreed apologetically that they didn't treat me very well. She said that she investigated and found that the sales manager had made a standard 35% depreciation offer based on them sending the X3 out to a wholesaler, and not selling it on their own lot. She said they would definitely sell mine on their own lot, so she upped their offer to $41.5K from $35K).

That is definitely more reasonable, and if they were to go a little higher (or give me a discount off a new car), I think I would take it.

What do you guys think?

d-rive
02-07-2007, 09:21 AM
it's already better ;)

midijab
02-07-2007, 02:59 PM
Sign Z Papers. :thumbup:

dug01
02-08-2007, 06:05 AM
Not an exciting vehicle..agreed ...just a great ride, safe and a pleasure to own. I'd rather be driving my blown Mustang or LS2 powered Chevy SSR. But the X3 is a great DD.

They tell you how well BMW's hold their value. They didn't mention that it's when BMW resells it. We get raped on a trade in...But watch what they sell it for. It won't be cheap or a deal.

Any dealer will Rape you on a trade in--they want to sell new cars and always take a gamble on a trade-(they get stuck with lemons too). It is easier and more profitable for them to sell clean deal and you will always do better as a customer doing that. I laugh at people that say what a great trade in they got for their car and then pay full sticker for the new car. On a clean deal you may be able to get the vehicle for close to invoice( but not a hot seller like the X3)--and the dealer still makes money. I got Blue book for my trade and paid sticker for the X3(sales man threw in about $600 worth of extras)--If I walked then the next customer would just buy the car--thats the way it is when you have a hot product. Now go to a Chevy dealer and look at an Impala and the sales man will do anything to sell---because he has 500 of them and maybe even some new 2006's left over. :dunno:

Andre
02-15-2007, 07:16 PM
Update: Otto's apparently did care for my business, and came up with a deal that made me happy. I should have a nice Alpine White 335i in 12 weeks or so. The only downside is I have to give up my X3 within the next couple of weeks, but to the dealers credit, they have worked out something for me.

I came out feeling like they did a good job of making up for their initial low offer. I was also interested to hear that they had seen my post here and commented to me on it!

Guess I'll be moving to the E90 forum shortly :)

SpeedR
02-15-2007, 07:23 PM
Sell it yourself to a private party if you want to get out now. Private party value is much higher than trade-in value. And since it's still under full factory warranty, you should get close to full certified used dealer retail price.

paulmurphyhomes
02-15-2007, 09:51 PM
There's a real simple solution, give it to your wife... and if you want an x, get one with HP. If you're not married, get married and give it to your wife. ;-)