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Thread: Depreciation

  1. #1
    Join Date
    Apr 2016
    Location
    NJ
    Posts
    126
    My Cars
    2000 M roadster

    Depreciation

    I currently lease a 2017 430ix GC with about 5K on it and I am one year into a 36 mo. lease
    It was 53K MSRP with a 32K buyout.

    Out of curiosity I started to look at trade-in values and I am seeing 26k to 30K, how is this possible?

    For the record I fully understand cars loose value as soon as they are bought but wow this is insane.

    Am I looking in the wrong place, is there something about the 430 GC?
    That would be 50% in one year at the 26K price

    thanks

    themush

  2. #2
    Join Date
    Oct 2009
    Location
    Bellevue, WA
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    2,403
    My Cars
    335d, 328xd (had 330xi)
    First, I hope you didn't pay $53K - the true market price was probably at least 10%, perhaps 15% under that.
    Second, the dealer has to make money somewhere. Trade-in prices are always always always less than a retail price that the owner can get by selling to a private party. The dealer would probably list a $26K car that was traded in for $30K or so. More if he had to CPO it.
    Third, if you haven't been paying attention, most buyouts have been set hopelessly high. A dealer (and/or BMWNA) will lose several thousand dollars on your car when you turn it back in (no way should you buy it at the "buyout" price.)

  3. #3
    Join Date
    Apr 2016
    Location
    NJ
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    My Cars
    2000 M roadster
    Everything you said is correct but 50% of MSRP for trade in after one year is extreme
    What I was looking for is if there is something extreme about this particular model to warrant that drop

    I have a lease so the end price doesn't impact me since I dont plan to buy it

  4. #4
    Join Date
    Oct 2009
    Location
    Bellevue, WA
    Posts
    2,403
    My Cars
    335d, 328xd (had 330xi)
    Quote Originally Posted by themush1326 View Post
    Everything you said is correct but 50% of MSRP for trade in after one year is extreme
    What I was looking for is if there is something extreme about this particular model to warrant that drop

    I have a lease so the end price doesn't impact me since I dont plan to buy it
    http://www.bimmerfest.com/forums/sho....php?t=1107361

    Talks about lease prices. You got a good deal on yours a year ago; give thanks you aren't leasing now.

  5. #5
    Join Date
    Apr 2016
    Location
    NJ
    Posts
    126
    My Cars
    2000 M roadster
    thanks for the link, yeah I was afraid that the days of cheap leases were coming to an end.

  6. #6
    Join Date
    Aug 2008
    Location
    North Potomac, MD
    Posts
    1,054
    My Cars
    2011 E90 328i
    First, find out who the lessor is, it may not be the dealer, who has no skin in the game.

    Then make the lessor an offer, say $26K and tell them why you think this is fair. They may make you a counter offer, or they may tell you no way. But you'll never know until you ask.

    Also, even if they get $26K at an auction, there's probably $4K in 'costs' on top of the $26K. If they sold you the car for $28K, they'd be in fat city getting $28K from you. I'll take 10% of whatever you save, which you can donate directly to the Disabled Veterans.

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