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Wow, 2010 7 Series value tanked

3K views 14 replies 13 participants last post by  MOPAULY 
#1 ·
I know all high end cars lose a lot of value quickly, but I was shocked at what my dealer offered me.

Found an awesome 2011 every option X6 ////M and toyed with the idea of trading my 2010 750i (still love my 7, it's just that X6 was crazy hot).

My 750i has less than 7k miles, and you could not find a pencil dot size blemish anywhere, inside or out. Flawless, always garaged & never even driven in the rain.

They offered me $63k. Seriously, I was floored. Called a friend of mine who works at a BMW dealer in the bay area, and he said they could offer me about $65k.

I cannot believe my car has dropped over $30k in about 6 months. Sad!

Good thing I love my 7, since it looks like I will be keeping it for awhile!! :)
 
#8 ·
That is EXACTLY what I told them. I told them several local dealers have 2010 CPO 750i's on the lot and on eBay...many with more miles than mine & they are asking mid 80's to even upper 80's (a few are actually in the mid/high 70's). Still....to offer me $63k was insulting!
 
#5 ·
It sucks, I know. I took a $25K hit on an `07 650i when I sold it after 9 months of ownership and vowed then and here to lease new and buy CPO.
 
#6 ·
Buying s car is like like buying a melting ice cube. Some people argue that leasing is restrictive but it in my view it's more cost effective then buying. I get a new car every 2-3yrs and I'm only paying for half the car. I'm only losing approx 14K/yr in depreciation compared with 30K after 6-7 months.

3 things guaranteed in life, death, taxes and the sob dealers will always rob you blind.
 
#7 ·
Blood Sucker dealers. Even buying used, they will suck at least $10,000 out of you
 
#9 ·
Sad to say that you're better off finding a way to "total" the vehicle and claim the insurance (assuming you have gap coverage) and getting the new car!! Any cliffs near by that the car can "accidentally" drive off of? Not that I would encourage this sort of thing!!
 
#11 ·
Dealer are just greedy. They don't have to hold the car at all if they sell it for mid 70s. $5k+ profit just doesn't seem to be profitable enough for them. :dunno:
 
#12 ·
your 7 didn't depreciate that much, it's just not a very liquid asset.

If you think about it, dealer is in someway just like a over the counter broker (OTC). there is a bid and there is a offer. It just performs a market clearing function for profit. the $30k you lost is not entirely depreciation but also liquidity premium. You want to sell your car ( or stock) right now, today, where do you get that kind of liquidity? or your don't have to take the dealer's bid price and try to sell it on your own at a much higher price, dealing with tire kickers, joyriders, who konws what.....Think of 7 as a thinly traded bonds and you are at the mercy of the market maker. very wide bid and ask. if you just bot a Civic and want to trade it, you probably won't take that kind of % hit.
 
#13 ·
If you think about it, dealer is in someway just like a over the counter broker (OTC). there is a bid and there is a offer. It just performs a market clearing function for profit. the $30k you lost is not entirely depreciation but also liquidity premium. You want to sell your car ( or stock) right now, today, where do you get that kind of liquidity? or your don't have to take the dealer's bid price and try to sell it on your own at a much higher price, dealing with tire kickers, joyriders, who konws what.....Think of 7 as a thinly traded bonds and you are at the mercy of the market maker. very wide bid and ask. if you just bot a Civic and want to trade it, you probably won't take that kind of % hit.
problem is if you are trading in bonds and a swap is proposed (think 'trade-in') the dealer
only takes markup generally on one side. in the car biz they take you for the bid-ask spread on both cars, doubling their profit on trade-ins.
 
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