What does it cost a dealer to recondition a trade-in for resale?

[fmcgraw]

I did a search and couldn't find anythign on this topic so hopefully I didn't miss a previous post. I'm wondering if anyone knows generally what it costs a dealer to recondition a used trade-in for resale? My car is in good shape with some minor exterior scratches and typical wear on the interior. The mechanicals are still perfect with no service needed in the 3 years I've had it.

I know they clean it, check the mechanicals and probably have some inspections to perform. I'm going to my dealer this weekend to order my 135 and discuss my trade and wonder how much wiggle room there might be in the value they offer me for it. I appreciate that they need to make a profit, but I'm hoping to get a good deal....I pulled the Kelley Blue Book value and have a good sense of where to start negotiations but wonder how high I can go. Thanks!

[AwesomeBMW]

The dealer may not give you a very good trade in value. I would suggest you try a carmax near you. You can get their apprasial and its good for 30 days or something like that. Then take it to the dealer and see which one is higher

[mikeo]

It always amazes me that people are willing to trade-in a car for $xxxx that with a $100 detail job, $50 AutoTrader ad, and little time answering contacts can bring $xxxx + $2500.

2005 Mazda RX-8, Base, manual, Good Condition

Kelly Blue Book, Trade-in value, 40K miles: $13,355

Kelly Blue Book, Private Party value, 40K miles: $15,915

[HFranks]

One reason people do a trade is that in many states you only pay sales tax on the difference between the price of a new car and the trade. If instead you sell your old car yourself, you pay sales tax on the full price of the new car and get no credit back when you sell the old car in a third party transaction. So if the sales tax rate is 9% you have to do better than 9% plus costs and hassle factor to come out ahead. It is a scam that the dealers worked with the state legislatures.

[atr_hugo]

Fortunately in Missouri, if I take the notarized 'Bill of Sale' in for my old car, the tax folks credit that against the new car price. Someone snuck one past the dealer lobbies in MO. ; -)

[larryn]

Most BMW dealers won't even bother trying to sell your car, in lieu of wholesaling it to a reseller (or a reseller of resellers), and you take a bath. Private sales are the biggest PITA, but yield the most scratch.

Around here, a 2005 RX-8 would be a double wholesale car. (no offense meant) You may want to put it up on craigslist for 2-5k more in your pocket.

[oldschoolhondafan]

unfortunately, if u look at kbb value on your car then walk into a dealer hoping for a good deal, you will most likely be very dissapointed. Take whatever you think your car is worth, then subtract 2-4k from that value. That is a good ballpark of what the dealer will offer you for a trade in.

[imported_Azzurri]

One of BMW dealers offered 10k for my car, and carmax the same. I checked KBB, and I would get about 2-3k if I sold it privately. The thing is I could be waiting a long time to find a seller.

[fuhgetaboutit]

The reason I am trading mine in versus selling is that the seat bolster on the driver's seat is all badly cracked (leatherette). Getting a new seat (of course it is a sport package seat) is too expensive, and trying to get it fixed it pointless because the dealer already tried that and it lasted a few months and was all cracked again (and it didn't look good even when they 'fixed' it).

[j330xi]

"Hybrid" solution...

My Dealer is very helpful....

I Find a PRIVATE sale person, and then the dealer "processes" the deal...

On paper I trade the car to the dealer , and the dealer immediately sell the car the private person for the amount that the Third party and I have agreed to. They ask no charge for "pushing" the car through... It shows as dealer trade for me, and they handle the title processing and transfer... The do a complete sale contract and everything for the Private buyer... if in state they will add the sales tax, title fee and apply for the plates.

I get the sale tax benefit for a "dealer trade"...

If you have a car on order or getting ready to order, they will allow an early "trade in".. and keep the equity as a deposit.. Used to give it all back BUT new laws say they have to keep any equity in escrow up to 9 months.... Flip side is you have to pay off the balance of the loan etc.. to clear the title.

[mikeo]

That is very creative, jgf330xi! You must have a very accommodating dealer.

[Fast Kiwi]

You guys have know idea how shocked i am to hear all that has been said in here..

and i mean in a good way.. lol

I've been in the car biz for a long time and have run everything from auctions to retail, wholesale blah blah..

To the OP, there is ALOT of very good information in here.. Some posts are more relavent then others depending on which state you live in etc but i'd take the advice you are hearing.

My two cents..

Find out the trade value from atl east two places and look at sites like yahoo cars, ebay etc.. to see what the "Buy it now" money is on a car like you'rs and then decide if the difference between those two numbers is worth A, the tax break loss (if you live in a state that dosnt do what "atr hugo" does, that is) and B, ask you're self this.. What is the money value for my time. if you still come up in the "green" then do.. If not.. don't waste you're time and enrgy.

Good luck.

[BMWhokie]

Good info in here. Now I need to calculate the adv/disadv of trading my car in.

[WhereItsAt]

Selling to a private buyer gernerates more cash. However, dealing with people, waiting for the sale and inviting "strangers" to your house can be very unappealing. Also, A few years back a friend of mine sold his Porsche to a guy with a cashiers check. Turned out to be a fake.

[Sherifftruman]

When I bought the MINI, I tried to sell my Jeep Cherokee, which was just barely 3 years old and had low miles. It was in really nice shape. I ran an ad in the paper and on Cars.com with a fair price given what about 5 sites said the car was worth and I got idiots calling me to offer something like 2 grand below the KBB dealer trade price. When my car finally came in I sold the Cherokee to Carmax for only about $1,000 below my asking price.

[bimmer98]

Yeah, I've got an '04 Alpine White 330ci Premium package with CPO warranty and 35,000 miles. It's been on AutoTrader for 4 months at $26,500 without a SINGLE call or email. I'm really worried about trade in value. I thought this was a reasonable price.

Since I bought it from the same dealer as my 135 only eight months ago as an 'interim' car (put deposit for 135 same day) until the 135 is delivered, I'm hoping they will work with me a little.

[BMWhokie]

Originally Posted by Sherifftruman

When I bought the MINI, I tried to sell my Jeep Cherokee, which was just barely 3 years old and had low miles. It was in really nice shape. I ran an ad in the paper and on Cars.com with a fair price given what about 5 sites said the car was worth and I got idiots calling me to offer something like 2 grand below the KBB dealer trade price. When my car finally came in I sold the Cherokee to Carmax for only about $1,000 below my asking price.

1k below asking price sounds reasonable to avoid the pains of selling privately. So did you use the KBB value as a starting point for price?

[Ty Vil]

This whole thread reminds me of what a hassle this is and how happy I am that I lease.

[Luongo]

My Black Sapphire 2006 330i with manual trans, premium pkg, navigation and cold weather pkg with only 35,000 miles got an offer of $25,000 from CarMax. MSRP when new was $42,500.

I'm not surprised you got zero call or email on your 2004 330ci with the asking price of $26,500.

Originally Posted by bimmer98

Yeah, I've got an '04 Alpine White 330ci Premium package with CPO warranty and 35,000 miles. It's been on AutoTrader for 4 months at $26,500 without a SINGLE call or email. I'm really worried about trade in value. I thought this was a reasonable price.

Since I bought it from the same dealer as my 135 only eight months ago as an 'interim' car (put deposit for 135 same day) until the 135 is delivered, I'm hoping they will work with me a little.

[bimmer98]

Originally Posted by Extract0r

I'm not surprised you got zero call or email on your 2004 330ci with the asking price of $26,500.

Yeah, sucks though. I'm going to lease this time. I've had to sell 5 cars previously, and it is a real pain in the ass.