B-Line, any tips on trading in (bmw to a newer certified bmw)?

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2002 X5 3.0 Siena Red
Premium, Cold Weather, Rear Climate Packages, 19" Wheels
Aluminum Running Boards, Clear Tail Lights, Clear Side Markers
Titanium Kidney Grills, Titanium Trunk Lid, Xenon Headlights
4.6is X5 exhausts, 35% Tint, Aluminum Pedals
2005 530I Mystic Blue
Premium Package, Sport Package, Xenon Headlights
18" Sport Wheels, 35% Tint all around
Mods to come: M-Tech Front Bumper, M5 Side Skirts, M5 Rear Bumper
Quad Exhausts, Style 172 19" Wheels

Great minds think alike. I follow the same methodology but I don't pick up the phones on the 1st phase. I generally just jump to the dealer website and submit via email/form and then dwindle it down from there.

Thanx, useful guide indeed!

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The Best Is Yet To Come!

Well, it's B-Line's thread, but maybe he will agree with the following.

Negotiate your purchase price first. If they ask, tell them you haven't decided what to do with your trade, sell privately, give it to a family member, whatever. Get your price agreed.

Then, see what they will offer you for the trade against an agreed purchase price. Consider any tax advantage, as in some jurisdictions the trade value is deducted from the purchase price to calculate the sales tax, but not everywhere. Know the sales tax law in your area.

The trade value is an emotional issue for most purchasers. They usually want to believe their pride and joy is worth more than it really is. The only figure that matters is the difference between the purchase price and the trade, but people tend to focus on one or the other and lose sight of managing both, so it is better to do them one step at a time. The dealer will want to talk about both values simultaneously. It is to your advantage not to do so. If two dealers are offering a similar sale price, you can shop the two dealers for a trade price, following B-Lines approach of keeping the dealers at arm's length.

With my last purchase of the 535i, I kept the trade out of it. I traded the Z4, because I didn't want to deal with joy riders and they gave me a fair price. With the 325xi, they were apprehensive about the value due to the manual transmission, so we sold it privately. With my X5 disposal, I planned to sell it privately. Four days before picking up the 535i, I called my dealer and asked for a valuation on the X5. They happened to want it (3.0, great condition, they had only 1 similar CPO in stock) and they offered me $1000 more, over the phone, than I could get for it selling it privately. Add in the sales tax advantage, and it was a no-brainer. I came out close to $5000 ahead of a private sale.

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2007 X3 3.0si, 6 MT, Premium, White

Retired:
2008 535i, 6 MT, M Sport, Premium, Space Grey
2003 X5 3.0 Steptronic, Premium, Titanium Silver
2002 325xi 5 MT, Steel Grey
2004 Z4 3.0 Premium, Sport, SMG, Maldives Blue

I usually go to Carmax and get a quote from them to see what I could cash out at, and then compare that to what the Dealer may offer.

There is a sometimes a difference between when you are talking about a car on the lot vs. ordering. Dealers are more willing to dump one that's on a lot. Not all the time but it's easier for them. And they generally don't want to do a dealer swap unless it's pretty close.

I would say, JCL hit it on the nose.

Treat the sale of your trade and the purchase of your new vehicle as two separate deals. One of the reasons I never finance is because even if your car is worth $20k when you are ready to sell it, it is usually next to impossible to actually get $20k for the car.
Maybe you get $18k or $17.5k.

So if you calculate that sale loss into the initial factor, it becomes even more clear that leasing is better.

I would say that getting the most for your vehicle is a completely different subject and should not factor into your buy. Treat them as separate entities. But if you get into a lease cycle, you won't have to worry about negotiating trades because your last car, you turned in.

But the best way to deal with your car is:
1) sell it privately
2) Car Max or Dealer trade.

But generally expect to get what is called "$2000 back of book".. Which means, whatever the wholesale book value is, the dealer will give you $2000 less than that. Then they sell it to a wholesaler. And $2000 isn't even that bad. It can often be $3k or less.

My point is, generally when selling a car you get screwed X3. And that is why I hate owning cars UNLESS, it is a garage queen. A porsche or special sports car, etc. But for daily drivers I don't want the headache of trying to sell and than taking a few thousand less than it's worth to get rid of it.

The last car I owned was an Infiniti FX45. Hated it and decided to sell it after a year. Book value was $45k. I only got $39k for it after six months of looking for buyers and selling privately. I then had to send the finance company $8k just to get rid of it cause I was upside down.

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"When two people agree on everything, one of them is not necessary" - Arliss

Carmax consistantely offers me more than any BMW Dealer and will pay me on top for the extended maintenance. Dealers use the trade as HUGE BS room.

Do dealers make more money on a lease overall than on a purchase thus more willing to work with you on this? Is it just as easy to get them to play this $500 over invoice game on a simple purchase?

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'08 X5 3.0si - Alpine White / Saddle Brown interior
Specs: Sport Pkg, Premium Pkg, Tech Pkg, Comfort Access, Aero Kit, Style 433 staggered 20s on Conti DWS
Mods: Carbon 35 tint, LED angel eyes, GP Thunder 7500k fogs, H&R 20mm/25mm spacers, clear reflectors, gunsmoke-tinted taillights
Coded: Digital speedo, windows/sunroof/tailgate close via keyfob

X5 pics at Flickr