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Discussion Starter · #1 ·
I'm seriously considering trading in my 05 X3 for the 07 model.

My 05 is paid off - but what happens if I have to order a vehicle and it takes 2-3 months to arrive. Does the dealer?

1) write me a check for the 05, I give them my car and I wait?
2) I hold on the my 05 till the new one arrives? I cut them a check for the $ difference when the new X3 arrives?

TIA
 

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HGX3.0 said:
I'm seriously considering trading in my 05 X3 for the 07 model.

My 05 is paid off - but what happens if I have to order a vehicle and it takes 2-3 months to arrive. Does the dealer?

1) write me a check for the 05, I give them my car and I wait?
2) I hold on the my 05 till the new one arrives? I cut them a check for the $ difference when the new X3 arrives?

TIA
Negotiate the trade and drive your car until the other one arrives.
 

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Discussion Starter · #5 ·
mysticbluex3 said:
Aren't you going to take a big loss?
I don't know - haven't got a trade-in estimate.

I'd like to physically see the 07 first before I go that next step. I'm thinking probably around 8-10K difference? what do you think?

specs:
X3 3.0
mileage now 17K
highland green/terracotta
premium package
premium sound
xenons
privacy glass

thanks
 

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mysticbluex3 said:
Aren't you going to take a big loss?
That is a given. He will lose thousands. At least 20-30% of the price of an 05. Dealers don't want X3's back. Not with gas prices being so high.
 

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chuck92103 said:
That is a given. He will lose thousands. At least 20-30% of the price of an 05. Dealers don't want X3's back. Not with gas prices being so high.
??

We don't want X5 4.4 or 4.8 models, but we have no problems with X3 or X5s... they're not gas hogs.
 

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HGX3.0 said:
I don't know - haven't got a trade-in estimate.

I'd like to physically see the 07 first before I go that next step. I'm thinking probably around 8-10K difference? what do you think?

specs:
X3 3.0
mileage now 17K
highland green/terracotta
premium package
premium sound
xenons
privacy glass

thanks
You're off by a bit...

Figure that a 2007 will be in the low $40k's... your car is probably in the $26k range.
 

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Any time you trade a car to a dealer you take a beating. They will always pay a few thousand below wholesale bluebook. You would be wise to sell it yourself.
 

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Powder Days
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Check ED

I would get a European Delivery ordered and then sell it myself when it is redelivered. You save ~7% or more (not counting travel to Europe costs). Check the ED Board for lots of info.

One could also trade in (taking the below wholesale hit), keep the car until redelivery (about 6-8 weeks after drop off in Europe) and then swap cars.

On the other hand, why trade a 2005 until it hits at least 100K. :)

Center
 

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"wholesale bluebook"... ask any wholesaler what book they use.. It ain't blue.. no one in the industry uses this value. You will only get these kinds of values selling the car yourself..
 

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Discussion Starter · #12 ·
I've heard of depreciation but 30% is pretty sad for a BMW.

MSRP was 41,095.00, I paid 37,300 New
Now it's only worth 24-26K with 16 months of use?

Is this a catch-22 - I lose 30% now or more if I hold onto it longer?! :eek:
 

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My Other Car Is A Bus
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Wait a little...

The initial depreciation is high for all vehicles. This is why leasing is so popular. You can change vehicles every 3 years or so, and it's a seamless transition. You might do better waiting about a year when the '07 is a leftover and negotiate a better price on the '07. That way you can get some more use out of your '05 and the financial beating that you take won't seem as great. This assumes you can wait for the '07. Personally I don't think the changes for '07 are that significant Just my opinion...
 

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HGX3.0 said:
I've heard of depreciation but 30% is pretty sad for a BMW.

MSRP was 41,095.00, I paid 37,300 New
Now it's only worth 24-26K with 16 months of use?

Is this a catch-22 - I lose 30% now or more if I hold onto it longer?! :eek:
We see this complaint all the time... "I thought BMW's had great resale value?!"

Well, they do. But, that doesn't mean that you aren't going to lose quite a bit of money trading it after 1 or 2 years.

Your biggest depreciation hit happened when you drove the car off the lot and it became a "used" car. It went from being a $41,095 car to a car with a wholesale value in the low $30k's. That's where you got killed. It happens to every car, unless it is something that is in extremely short supply that sells for a premium. The X3 is no such vehicle.

After the value of your car dropped into the low 30's, it has been slowly falling. The difference in a '04 to a '05 to a used '06 is not that big... much smaller than the gap from a used '06 to the new one. From this point forward, your annual depreciation on the car is going to be relatively minor.
 

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Discussion Starter · #15 ·
Don't you think the dealer would be more inclined to negotiate a good trade in value, since they won't have to payoff a finance company. They are dealing with a direct trade and me compensating with the price difference?

or do they love negative equity finance situations, where they can tack on payoff values into a new loan?

either way - they got us!!
 

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You having a payoff or not will not affect the wholesale price of your car. If you have a payoff it's a 1-2 week process for the dealer to get the title. No reason they'd give you more money because they don't have to wait a week for the title. In addition, in many states there is paperwork that you sign that enables the dealer to retail your vehicle without them having the title. Being that you're trading it to a BMW dealer, I'm sure they'd be retailing it and not sending it to auction.
 

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HGX3.0 said:
Don't you think the dealer would be more inclined to negotiate a good trade in value, since they won't have to payoff a finance company. They are dealing with a direct trade and me compensating with the price difference?

or do they love negative equity finance situations, where they can tack on payoff values into a new loan?

either way - they got us!!
Let's get this out in the open. There is an old myth that you get a better price when you pay cash. I guess you could also expand this to think that you get a better price when you have a title for your trade in hand. In the real world, both of these arguments are almost always wrong....

1> Dealers can make money off of financing and leasing agreements. They want you to finance and to do it through them... they DON'T want you to pay cash

2> The trade is worth what it is worth. Whether or not you have a payoff will not change what that car will sell for in the marketplace. Having to pay the loan off simply means that the dealership has to take a few extra steps (cutting a check, mailing it, waiting a week or two to get the title). Dealers have sufficient lines of credit and cash available to be able to payoff these accounts.... it''s not a burden to them.

The only time where having a title "in hand" can get you more money is when you are dealing with a very specialized car, in which case if they are trying to shop it and pre-sell it to a wholesaler or another dealer, the buyer might want the car NOW and will pay a premium if they can get it NOW with a title in hand for immediate sale. This applies to highline and hard to find cars, though, not mainstream cars like X3s or any other average BMW.
 
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