Trade in Value

[v10rick]

Originally Posted by cpatzer

Is is just me or does KBB and NADA seem to be missing a massive amout of options that are available on the X5 for determining trade in/retail.

I know I paid more for rear htd seats and a htd steering wheel, rear climate, bluetooth, 20inch wheels, Navigation system, Premium Sound, Park distance Control... etc. Why in the hell aren't those an option when figuring trade in?

KBB has some, NADA has some but neither have even close to the list of options available.

How true.

Went shopping for a preowned X5 and used KBB as a reference. I heard this same statement about options from both private parties and BMW dealers. Then I compared X5s listed for sale at Carmax. There was about $1K + difference between a low option X5 compared to a higher option version with Nav. of the same year and similar mileage.

I came to the conclusion that these expensive high profit options are not worth much so I decide on a low option new X5.

BTW locating one at the end of the 2006 model year was no easy task.

Found the same thing with the Infiniti FX45. Tech was a $4500 option in 03 but models with this option were only $1K above the base FX45 listed on the Carmax website.

Does leasing offer some depreciation protection? Having the option to buy for the residual $$ if the price is lower at lease end may be an advantage.

[cpatzer]

Options do increase your cars value though according to what I have been told by multiple dealers here in Seattle. It makes your car more marketable. Plus I just plain like all of the toys.

I think KBB and NADA have gotten into bed with the dealers to screw consumers. They love trade-ins because they maximize profit that way. As stated before, I would much rather give someone trade-in price + tax break I would get than give the dealers any more money. I have been screwed by enough of them.

Leasing is the only way I buy cars now.

1) I get an extended test drive to decide whether or not I really like the car.
2) If the car depreciates massively by lease end, I can ditch the car and it is the dealers problem.
3) I only finance the tax for the "portion of the car" I am purchasing during the lease.
4) BMW usually has really good lease rates.
5) Lower monthly payments let me buy more toys.

[the head]

Originally Posted by x54.4blue

What about KBB pricing on used cars?

it is traditionally high use NADA for price estimates it is used by most dealers
many dealers use NADA for trade in because the value is lower then use KBB for used resale because value is higher...most used vehicles go for 20 to 30 percent profit...sometimes more but that is average around here

For me I don't care about resale I care about having the options I want on the vehicle...if it is going to depriciate anyway what is the difference

[v10rick]

Originally Posted by cpatzer

Options do increase your cars value though according to what I have been told by multiple dealers here in Seattle. It makes your car more marketable. Plus I just plain like all of the toys.

I think KBB and NADA have gotten into bed with the dealers to screw consumers. They love trade-ins because they maximize profit that way. As stated before, I would much rather give someone trade-in price + tax break I would get than give the dealers any more money. I have been screwed by enough of them.

Leasing is the only way I buy cars now.

1) I get an extended test drive to decide whether or not I really like the car.
2) If the car depreciates massively by lease end, I can ditch the car and it is the dealers problem.
3) I only finance the tax for the "portion of the car" I am purchasing during the lease.
4) BMW usually has really good lease rates.
5) Lower monthly payments let me buy more toys.

Also only the total of the lease payments appear on the credit report. So it does not appear that a house with wheels is being financed.

[Roc3b]

I know for a fact that CARMAX is operation at a 10% margin, they want to turn inventory.

[v10rick]

Originally Posted by Roc3b

I know for a fact that CARMAX is operation at a 10% margin, they want to turn inventory.

Roc that may be the case but that markup is not evenly applied to all transactions. I sold them my FX and tracked the sale progress by monitoring their website. It started at 20% then reduced about every three weeks until sold. Another was a Merc SLK350 which they marked up 10% and sold at that price.

I'm not trying to hijack this thread and I don't work for Carmax but for anyone considering the purchase or sale of a used vehicle of any make their pricing can be a valuable negotiating tool with other dealers.

Especially if a Carmax is nearby.

[X5Flyboy]

My sister used Carmax and loved the whole experience.

[v10rick]

WOW it appears that leasing my X5 was good move. There are 11 months remaining on my lease and the residual is way above these prices.

Hopefully BMW will be in the mood to negotiate at lease end.

[cpatzer]

That page would be a whole lot more helpful if they listed the model of X5 purchased and options.

For instance, a 4.8is fully loaded 2005 is going to go for way more than a 3.0 bare bones.

Just my 2 cents.

[E61Silver]

Originally Posted by cpatzer

That page would be a whole lot more helpful if they listed the model of X5 purchased and options.

For instance, a 4.8is fully loaded 2005 is going to go for way more than a 3.0 bare bones.

Just my 2 cents.

A SUV in todays market is not worth much. A 4.8 is worth more because it is rare but the options don't mean much.