Low Resale Value What Gives?

[willrwilli]

Okay here is the scoop. To make a long story short, I am someone who was caught up in the 1 Source Auto Warranty situation. I have a 2001 X-5 3.0 with 86K on it. When I bought it I knew I needed an extended warranty because of the cost of repair. Since 1 Source went out of business I am now out of $3000.00, and have a big monthly payment on a vehicle with no warranty. My solution was to bite the bullet, and get a newer CPO X-5 or even a new one. The problem is I am getting killied on the value of this X-5. I am getting numbers from 12,000.00 to 15,000 for trade in value. Obviously I owe more than that on the vehicle. Is anyone else dealing with this? I am hearing that gas prices have hurt value, but if that is the case I can't see spending 50K on a new one if the value is just going to spiral down hill. My X-5 is well equipped (no navigation system) and is in mint condition. What do you folks think I should do?

[Boston X5 4.4]

I have seen the same drop in re-sale/residual values in New England which has historically had good re-sale for 4X4 with winter weather conditions. It seems like leasing new is starting to become a better/cheaper alternative than taking a big depreciation hit unless you plan on keeping the car for 5 or more years.

[motordavid]

ww,
The Stlr is lowballing your current value as he will prob. wholesale it.
It is an '01, (I have one, also), and that 86k on the clock is not helping.
Older Xs are depreciating like a dropped stone and, newer ones are right
behind them. The new E70 will not help the desired population situ, either.
The mfg'ers are in biz to move metal: lease and worry about retained "value",
later. Thus, the 2nd/3rd owner or long time holder is whittled down via
that lowered "value".

-If you have another Stlr in area, try them.
-Try to off it privately.

The 1Source toes up deal was not a good situ; I'm keeping my
fingers crossed with my WarrDirect ext warr.

You have bumped into the reality of a car: a very depreciating
expensive asset.
GL,mD

[SuperGreg]

Originally Posted by motordavid

The 1Source toes up deal was not a good situ; I'm keeping my
fingers crossed with my WarrDirect ext warr.

GL,mD

Placed my first warranty claim with WD a couple of weeks ago with absolutely no problems! So far so good

[Roc3b]

I brought up this topic last Dec and was shouted down but it is a sad reality. With realiability issues and gas hogging, those two things are counting against you.

[E61Silver]

Originally Posted by willrwilli

Okay here is the scoop. To make a long story short, I am someone who was caught up in the 1 Source Auto Warranty situation. I have a 2001 X-5 3.0 with 86K on it. When I bought it I knew I needed an extended warranty because of the cost of repair. Since 1 Source went out of business I am now out of $3000.00, and have a big monthly payment on a vehicle with no warranty. My solution was to bite the bullet, and get a newer CPO X-5 or even a new one. The problem is I am getting killied on the value of this X-5. I am getting numbers from 12,000.00 to 15,000 for trade in value. Obviously I owe more than that on the vehicle. Is anyone else dealing with this? I am hearing that gas prices have hurt value, but if that is the case I can't see spending 50K on a new one if the value is just going to spiral down hill. My X-5 is well equipped (no navigation system) and is in mint condition. What do you folks think I should do?

I think you should just keep the existing X5 for another year or so. The new X5 is just coming out and the stock is low so the dealer and BMW has now reason to cut low price deals. With regard to the existing X5 gas prices are dropping and demand for SUV's will probably come back soon.

[IFlyX5]

Originally Posted by x54.4blue

...With regard to the existing X5 gas prices are dropping and demand for SUV's will probably come back soon.

But you know the dropping prices of gas is only temporary, right?

[E61Silver]

Originally Posted by IFlyX5

But you know the dropping prices of gas is only temporary, right?

Not sure what you are saying:

1) The run-up in prices was caused by last years hurricane season and political event.

2) The current drop in prices get us back to 2004 "normal" levels

3) World events such as problems in the middle east could cause another run-up.

So my view is that current prices are within the range of normal price levels.

[AzNMpower32]

Try Carmax. We've sold our last two vehicles to them for a reasonable price and less hassle than doing so ourselves. Also, you can try posting on this site (if you haven't already) or the BMW CCA classifieds. Note that if you aren't a BMW CCA member, you'll have to pay for the ad.

Geez I hope the X3's value won't fall like this, although I don't see it happening in the foreseeable future.

[willrwilli]

I think at this time, I am going to either just hold tight, and try to pay down what I owe on it or look into selling it myself. Since I owe money on it makes selling it myself more of a chore.