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      08-15-2008, 06:08 AM   #1
torino2005
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BMW donít retain the expected value! Help!

Hello,
I have 07 335xi, premium/sports package and itís my second 3 series.
Very rough ride for my kids, Iím entertaining the idea to go for the new facelift instead, I have owners choice and trade in would be a viable option.
I contacted my CA and he gave me a lecture about the current economy, etc and the car wouldnít retain value, I see the same spec for sale Ėpre owned- goes from 49-50K (Canadian) online, heís offering 36K for the trade in, itís a big surprise for me that the car would lose 40% in the first year!
This means itís way better to do a lease now, itís less expensive to get out of a lease, even with extra mileage than finance.
Suggestions, anyone encountered such a situation and have an experience selling the car outside the dealership in Canada, itís a bit of a risk to do such a transaction outside the dealership.
All the help appreciated.
Thanks
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      08-20-2008, 01:46 PM   #2
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Quote:
Originally Posted by westwest888 View Post
Uhh, why don't you spend $600 in parts and $600 in labor and put in a softer suspension?
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      08-20-2008, 02:23 PM   #3
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I believe XI don't have the stiffer sport suspension, just different wheels and tires with the sport package.

If this is true and you still think the ride is too stiff, you bought the wrong car.

You should purchase something that doesn't try to be sporty, such as a Toyota Avalon/ES350.

Personally, I would keep the 335 and tell the kids in the back to STFU or get your wife to take one for the team and buy a minivan
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      08-20-2008, 03:13 PM   #4
torino2005
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The 07 came with stiffer and low clearance 18Ē High Performance which need to be replaced with 17Ē rims and tires for Winter.
The 08 donít offer that anymore, just wheels and seats, for a good reason I guess.
You hit a pothole and you would feel if the car exploded.
Anyhow
The quote is around 8K to replace the suspension, rims and wheels.
Iím actually better off getting a new 08 if I can find any with xDrive.

Iím just surprised about the resale value I got from the dealer & this is the part I was looking for help with.
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      09-14-2008, 03:13 PM   #5
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Quote:
Originally Posted by torino2005 View Post
The 07 came with stiffer and low clearance 18Ē High Performance which need to be replaced with 17Ē rims and tires for Winter.
The 08 donít offer that anymore, just wheels and seats, for a good reason I guess.
You hit a pothole and you would feel if the car exploded.
Anyhow
The quote is around 8K to replace the suspension, rims and wheels.
Iím actually better off getting a new 08 if I can find any with xDrive.

Iím just surprised about the resale value I got from the dealer & this is the part I was looking for help with.
Your dealer is selling you a load of BS

BMW DOES NOT on any model include a sport suspension with the XI. It is not possible and does not exist in ANY market. The only difference is the Wheels, tires, seats and steering wheel on s ZSP equipped car. That is it, nothing more. They are not being honest or do not know what they are talking about. The easiest/cheapest way to improve handling with your car is to buy a set of after-market wheels with standard/ NON-RunFlat tires. The rough ride is caused by your car having 18 Runflat tires, that is it. Put on some 16 " or 17" wheels with pilot sports etc. and that is the best it will get.

The 2009 will NOT improve the ride quality at all. You are looking at maybe 2-3k at most to do the wheel tire swap, and they need not be BMW wheels per se, just buy a quality product.
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      09-15-2008, 08:32 AM   #6
torino2005
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[quote=mapezzul;3318225]Your dealer is selling you a load of BS

I agree, after investigating it further, I found out itís the 18Ē, performance and runflat combination, replacing it with 17Ē Michelin all season improved the ride dramatically.
The odd thing though that I was told by more than one dealer that I have a stiffer suspension, not the same as the one on the 335i but still somehow stiffer, but Iím not really the subject matter expert here, just repeating what I heard.

My issue is solved, but the point I wanted to make, is to highlight the strange BMW price depreciation, contrary to my previous believe it seems leasing is the best option, even with out of lease risk, mods and extra mileage.

Thank you for all the informative replies.
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      09-15-2008, 04:46 PM   #7
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u can install KW V3 coilover suspension and make the ride even softer.
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      09-18-2008, 03:08 PM   #8
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Quote:
Originally Posted by torino2005 View Post
My issue is solved, but the point I wanted to make, is to highlight the strange BMW price depreciation, contrary to my previous believe it seems leasing is the best option, even with out of lease risk, mods and extra mileage.

Thank you for all the informative replies.
The problem is you are trying to compare what you paid "Retail" to what your car is worth as a "Trade In." Basically, the dealer sells you a car at "Retail" (whatever you paid is Retail, not to be confused with MSRP) but buys them back at "wholesale."

The dealer isn't going to give you what the car is worth at retail, because then they wouldn't make any money. They buy cars at "invoice" or "wholesale" from BMW, so they aren't going to give you more for your trade than what they could buy a brand new one for.

What you need to compare is how much you paid for the car vs. what you could sell it for as a Private Party (sell it on your own.) I know you are in Canada, but KBB.com and nadaguides.com should give you a good idea.

For example, running my car through KBB.com yields the following "Private Party Value" - $36,335. I paid $45,100 for the car, so in 16 months I've lost
$8,765 (-19.4%.) Using the "Compound Annual Growth Rate" formula except in months, which is CAGR = [(ending amount / beginning amount)^(1 / # of months) - 1] yields a montly depreciation average of -1.3%. That isn't really that bad.

If I try to compare it to Trade In Value, it is down another $3,000, or -26%. And that assumes that KBB.com is right. With more and more high end cars just sitting on the lot unsold, dealers are less and less likely to want to take on additional inventory in used cars.

Of course, the bulk of the depreciation is at hour 1, when you drive it off the lot, but over time, the depreciation starts to level out.
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      09-18-2008, 03:14 PM   #9
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Quote:
Originally Posted by torino2005 View Post
Hello,
I have 07 335xi, premium/sports package and itís my second 3 series.
Very rough ride for my kids, Iím entertaining the idea to go for the new facelift instead, I have owners choice and trade in would be a viable option.
I contacted my CA and he gave me a lecture about the current economy, etc and the car wouldnít retain value, I see the same spec for sale Ėpre owned- goes from 49-50K (Canadian) online, heís offering 36K for the trade in, itís a big surprise for me that the car would lose 40% in the first year!
This means itís way better to do a lease now, itís less expensive to get out of a lease, even with extra mileage than finance.
Suggestions, anyone encountered such a situation and have an experience selling the car outside the dealership in Canada, itís a bit of a risk to do such a transaction outside the dealership.
All the help appreciated.
Thanks
Simple answer for you. It seems likke you fell the car is worth thousands more than the dealer says. If this is the case you should have NO PROBLEM selling it on your own. People should knock your door down if you have to sell it being that its worth so much more than the delaer says and you cant still get more than the delaership. Sell on your own. I have NEVER traded a car in and I sell cars. I have sold every single car I have owned MYSELF. Simple as that.
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      09-21-2008, 09:34 AM   #10
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Quote:
NO PROBLEM selling it on your own.
Seems soooo easy in theory. Then find a buyer for an used 33000$ car who doesn't know about getting a new 42000$ one at 2% interest.

My car (pristine condition 9000 miles automatic) was tagged 41895$ 12 months ago and the stealer just offered me 23500$.
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      09-23-2008, 10:51 AM   #11
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Quote:
Originally Posted by Saintor View Post
Seems soooo easy in theory. Then find a buyer for an used 33000$ car who doesn't know about getting a new 42000$ one at 2% interest.

My car (pristine condition 9000 miles automatic) was tagged 41895$ 12 months ago and the stealer just offered me 23500$.
That was point. It is NOT easy. Being in BMW sales for over 4 years many people say my car is wroth 4-5k more than what your giving me. If that is the case sell it on your OWM and it should be EASY being that the trade in value is so bad. You should have people knocking your door down because you car is "such a good deal" A person car is worth nothing. What its worth is what you SELL it for not what your asking. A car is not worth anything until a car is sold.
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      10-05-2008, 01:58 PM   #12
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Thank you for the contributions, I would like to add my findings in case someone wonders what the conclusion on my end and it might be beneficial to others.
In terms of depreciation:
I understand from the dealer perspective they would only offer what they call the ďAuction priceĒ which is 2-4% less than the Black book price, the private sale price is the best option but there is a high risk for selling a 35-40 K car to a stranger and I never done it myself, also the car is still under warranty but not BMW certified -2 different things-, I havenít found anyone in my search in the GTA area who would help you sell as a private sale and in return would max your return on the car, and I guess that was my original ask although it wasnít clearly specified in my post.
The depreciation rate in the current slowdown economy is 40% in the first year or once out of the door, if there is a value, it would only show when the car at the less than 50% -3 years-.

Regarding the harsh ride and the big bang or thud you encounter in a 335xi if you hit a pothole, this is related to the RFT and the poor 335xi stock suspension, it was an excellent recommendation to install KWv3 and I understand now why.
There are few threads describing the exact same problem that Iím having and the cost is not in any way near what the dealer estimated to replace the suspension -15 K-
I kept the car and replaced the stock Bridgestone with pilot sport and in my way to install KW V3.
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      10-12-2008, 04:08 PM   #13
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I'm seeing this a lot right now with dealer used car transactions. Dealers are trying to get a much higher margin with a used car transaction than a new car transaction. Sometimes I think the longer you work at a dealer the more the brain cells are sucked out of your head. Maybe its the cheap coffee they serve????

I understand the desire, but a reality check please. Let's say they make $3K on a 335i new. On a two year old trade-in they'll try to turn a $9K profit after reconditioning and prep.

Next couple of years are going to be tough on resale. There is already a major glut of nice used inventory. I keep getting calls about cheap auction cars with sub 10K miles. Makes me consider walking away from the 335 I have sitting at the port awaiting CARB approval this month. I like new cars, and I drive a ton of miles, so I can't lease. But the economy has me tempted right now to walk into an auction with cash and look to scalp a repo M3. The screaming deal I thought I had the new 335 isn't looking like a bad deal, but with the used glut and the sour economy, its not exciting.

BTW-I have the KW variant 3's on a different make car and they are a nice setup. A lot of adjustability, I used them to help make a stiffly sprung autocross car liveable on the street.
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      11-01-2008, 10:13 PM   #14
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Quote:
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I understand the desire, but a reality check please. Let's say they make $3K on a 335i new. On a two year old trade-in they'll try to turn a $9K profit after reconditioning and prep.
+1
On my trade of a 2007 335i E93 with only 13K miles the dealership marked it up $10K, then it sat on their lot for ~60 days and was moved to a different venue to try to sell it
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      12-27-2008, 04:52 AM   #15
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Guys, where I live the situation is getting so out of hand that a dealership would pay you nothing for your trade in, their patios are full of used cars that they cannot sell because of the decrease in prices that the manufacturers are doing, in addition to that you can get financing for a new car at almost 0% rate and this does not applies to the used cards, hence, those cars sit in the lot depreciating by the minute. Sales for new car is at its highest level, used cars are in the sh!tcan. I had a Volvo S40 T5 2005, and they were offering me insulting amounts on the car, so I decided to put the car on the web and I sold to a private party, granted, did not get market value, but got a lot more than if I would drop at the stealer$hip. Not sure at this point what's gonna happen with used cars in the next 2-3 months.
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