The Galves trade-in (wholesale) value of a 2008 E92 328i with auto, Sport Package, dual power front seats (Premium Package), and 17k miles is:
$22,925
+ $1,400 (estimate) to recondition the vehicle (new tires, etc.).
+ dealer overhead.
+ dealer profit.
= $ ________
I think $26,500 is a good deal for a 2008 E92 328i in very good condition with new tires and a clean title. That price works out to about 8% overhead/profit for the dealer. You may be able to get it for under $26,000, depending on how desperate the (non BMW) dealer is to get it off of his lot.
Additionally, spending an extra $2,000 for CPO is not all that necessary for a 328i IMO.
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