Bimmerfest - BMW Forums

Bimmerfest - BMW Forums (http://www.bimmerfest.com/forums/index.php)
-   E90/E91/E92/E93 (2006 - 2013) (http://www.bimmerfest.com/forums/forumdisplay.php?f=99)
-   -   How to value a 2012 model at a dealership (http://www.bimmerfest.com/forums/showthread.php?t=672162)

myfbforumname 01-24-2013 04:30 PM

How to value a 2012 model at a dealership
 
I'm looking at a '12 model at a dealership right now. It's basically a 0 mileage but 1 year old car at this point. Is the KBB fair price accurate to what I should be paying? Any ideas?

Tier1Support 01-24-2013 04:57 PM

At this point, age is not a huge factor - is the dealership discounting for the age?

gpburdell 01-25-2013 04:56 AM

Quote:

Originally Posted by myfbforumname (Post 7335780)
Any ideas?

Fair price is highly dependent on time and your location. Prices from six months ago in a different area are essentially irrelevant.

You're facing two question here. First is whether the discount vs a MY2013 (including all incentives) is at least as much as the value difference of it being a year-old car. I'd suggest look at all the various sources such as KBB, Edumunds, NADA, etc. to compare trade-in and retail pricing on the same configuration going back four years or so. i.e. what's the year to year pricing difference on used 2012's vs 2011's vs 2010's vs 2009's etc. Compare these year to year value differences to the discount on this car.

Second question is what's the price on similar cars for sale in your area? Are there any similarly configured new or used 2012's available? Consider the price of those vs. what the dealer is offering. That's better guidance than some online lookup or anecdotal claims from random strangers on the Internet. :)

RVExotics 01-25-2013 06:00 AM

There's a dealer somewhat close to me with a '12 328i coupe that has an MSRP of over $49k and they've discounted it to just over $42k. Very well equipped and I would get it in a heartbeat but the residuals on '12s are crap so I can custom build a '13 for nearly the same as the original MSRP for a cheaper lease payment.

furby076 01-25-2013 07:20 AM

Look at invoice price of the 2012. Look at invoice price of 2013. You should be paying less for the 2012 then the 2013.
Factors to consider -
1) is the warranty/maintenance going to be from the point of sale or the point of car creation? That is the difference of at least a year.
2) That car has been sitting on the dealership lot for a while...they are losing money on it (they have to pay interest on the loan they took out) - plus everyday it gets older they are going to sell it for less

Take a look at the residual value for that car (like a lease). See what the car will be in four years. Let's say the car is $40,000 in 2012 brand new. In 2013 = $35,000. In 2014 = 27,000. In 2015 = 20,000 (hypothetical). You are now buying the car in 2013. I would want that reduction of price ($5,000).

Obviously the dealership will argue. They will want to give you $500 cheaper than a 2013 - but you should argue back. They look at residual values and so should you.

ptrcd003 01-25-2013 11:28 AM

Quote:

Originally Posted by furby076 (Post 7337020)
1) is the warranty/maintenance going to be from the point of sale or the point of car creation? That is the difference of at least a year.

Yes, warranty is always from the time it was delivered to end customer.

deanpeterson 01-26-2013 09:56 AM

In The end people look at the year of the car when you go to sell it! Its a 2012 - its a year older - worth less. Should get a discount for sure!


All times are GMT -7. The time now is 04:40 AM.

Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
© 2001-2011 performanceIX, Inc. All Rights Reserved .: guidelines .:. privacy .:. terms