what to do with a trade-in?

lhoboy8 · 11-10-2005, 02:40 AM

Hey guys,

My e90 was on the freedom, so it is due to arrive any day now. I was wondering what people generally do with their trade-in vehicle. I'm trading in a 2000 323ci with 45K miles on it. Should I have it washed and detailed before I bring it to the dealer? There are 2 minor dents in the car (people parallel parking into my car), a variety of superficial scratches, and some deep scratches. I've had people suggesting that I detail it, although i'm not sure it's worth the costs. I generally presume that a BMW dealership has a lot more resources to fix a car of their own so I wouldn't be penalized for smaller blemishes. ANyways, what did you guys do? and what should I do? Thanks in advance.

CPTHALL · 11-10-2005, 03:42 AM

I am in the same boat. I have a 2002 325ci with SP, PP , heated seats. My vehical arrives in Mid December. I can get 19k as a trade. Dont know if I should trade or sell? How much are they giving you for your trade?

BigDog · 11-10-2005, 05:39 AM

I'm assuming they already set the value for your trade in....

let the dealership handle it, they're not going to pay you for the time and money that you take to fix the car unless they included that in your trade in amount

pharding · 11-10-2005, 06:41 AM

Don't fix anything. You are allowed x amount of minor dings. However the dealers are generous with someone getting another Bimmer. I usually run my car through a car wash so that it presents better when I turn in my leased cars.

lhoboy8 · 11-10-2005, 08:07 AM

Thanks for the info, but I haven't set the trade-in amount yet since they said it had to be done within 1 month of the sale and I ordered by car 2.5 months ago. Does this change anything?

They had told me they will probably give me close to Kelley's Blue Book value - but they had not looked at my car yet. KBB had given me an estimate of just over $15K. But then again, when Lexus initially looked at my trade-in they were would only offer me about $10K - before negotiations. Therefore I'm slightly anxious about the amount that BMW will give me.

Steve328i · 11-10-2005, 09:29 AM

Based on my experiences with a '92 5-series, a '95 325iC, '00 328i, and a '01 330ciC, spending your time and money on detailing the vehicle will not get you anymore on your trade.

BigDog · 11-10-2005, 10:01 AM

they pretty much have a set idea on how much they'll give ya... not much you can do other than negotiate etc...

but will it be worth the time and effort? depends how much your time is worth to you...

noflash · 11-10-2005, 10:08 AM

Quote:

Originally Posted by lhoboy8

Hey guys,

My e90 was on the freedom, so it is due to arrive any day now. I was wondering what people generally do with their trade-in vehicle. I'm trading in a 2000 323ci with 45K miles on it. Should I have it washed and detailed before I bring it to the dealer? There are 2 minor dents in the car (people parallel parking into my car), a variety of superficial scratches, and some deep scratches. I've had people suggesting that I detail it, although i'm not sure it's worth the costs. I generally presume that a BMW dealership has a lot more resources to fix a car of their own so I wouldn't be penalized for smaller blemishes. ANyways, what did you guys do? and what should I do? Thanks in advance.

Just be prepared to walk away.

They'll try and give you next to nothing since your new car is waiting for you there.

You should've spent that 2.5 months trying to sell you car yourself.

If they don't come close to what you want, be prepared to walk away. Right now, they think they've got you right where they want you.

Good luck.

EDIT: I washed and vacumed my car before they inspected it. They low-balled me. I said no thanks. Two days later they cam eback with another offer. I agreed and brought them the car with a dead battery -- I left it running and told them to be mindful of where they turned it off!

longtran · 11-10-2005, 10:44 AM

Quote:

Originally Posted by noflash

EDIT: I washed and vacumed my car before they inspected it. They low-balled me. I said no thanks. Two days later they cam eback with another offer. I agreed and brought them the car with a dead battery -- I left it running and told them to be mindful of where they turned it off!

obLu · 11-10-2005, 11:59 AM

Sometimes they're good about trade-in values, but most times not. They'll usually try to get you to take auction value for it. Like the other poster said, be prepared to walk.

A 2000? I assume it's paid off, so maybe the sales tax credit might be worth it. Here in WA it's 9.1% so sometimes you can claw back quite a bit of the value from the credit.

I just sold my car myself, and while I got my pay off for it, I'm now turning around and forking over 3600 out of my own pocket for sales tax on the new car. Only way I'd sell my car myself again is if I could actually make enough profit to cover the sales tax. I had to spend a lot of time and money to sell that car.

lhoboy8 · 11-10-2005, 12:27 PM

I didn't even consider that I would have to pay tax on the sales revenue. In that case, I doubt I could sell my car myself more than the difference including sales tax. Plus all the time commitment, arranging meetings, letting people test drive your car. I just don't think it's worthwhile in this case. But then again, who knows who little the dealership will offer me...

obLu · 11-10-2005, 01:32 PM

You don't pay the sales tax on the car you sell, the buyer pays that. But if you trade a car in, you only pay sales tax on the difference between the trade-in amount and the sale price of the new car.

In my case, no trade-in = full sales tax @ 9.1%. Which is painful. If I'd been able to sell the car at a 3600 profit then it'd have been worth it.

I didn't have much choice though, I owed 28 and they only wanted to give me 21 for it.

lhoboy8 · 11-10-2005, 01:40 PM

Would the sale income be included on your tax filings as income? Thus you'd pay tax on this, and obviously you couldn't deduct your expenses for purchasing a new car.

34Three · 11-10-2005, 03:27 PM

no man, you've already bought the car with taxed dollars...not fair to tax you again on what you got back?

Some states don't charge sales tax to buyers of pvt. party sales (like Illinois)...dealers hate this since 9% in chicago is a chunk of change and can make a pvt transaction better for the common folk.

mc68386 · 11-10-2005, 05:32 PM

You don't have to pay taxes on the proceeds for stuff you sell at a loss (like your car.)
There might be exceptions in cases where you had deducted depreciation or something like that.
If you buy cars at auction and resell, or sell cars you have fixed up, and make a profit, you'll have to pay tax on the profit.

David328M-Sport · 11-10-2005, 05:49 PM

I negotiated a fixed price trade in back in feb when i ordered my car. I didnt wash or prepare it for trade in show. After that, I never washed it again although I had new tyres fitted in December 04, which the dealer was most impressed with. That's all I did.

lhoboy8 · 11-10-2005, 06:26 PM

yeah, that was my mistake. Funny thing though, I just got out of tax law class and we were talking about deductions on capital expenses, and then jotted a reply down. Completely forgot about the purchase basis. i'm an idiot.

selm · 11-10-2005, 07:18 PM

I am in the same situation. I have a trade in (infiniti) and the kbb fair trade in value is something like $6300 and good condition is over $7K. The BMW dealer offered me only $5000. I walked away very upset and will never buy another car from that dealer again. Too bad for that dealer, my spouse wants an E90 now, and I will be buying BMWs for the foreseeable future. I know it will not accomplish anything to call them and tell them off, but I really feel like doing it.

obLu · 11-10-2005, 10:02 PM

You'll *never* get anywhere near KBB unless the dealer is making it up on the backend by charging you too much for the car. You'll only get wholesale auction price. It's not like a BMW dealer is going to put a $6000 car on their "pre-owned" lot to try to sell. They reserve those spots for BMW lease returns.

dubroz · 11-10-2005, 10:06 PM

I had a 2000 VW Jetta 1.8T, fully loaded with only 55k miles.

KBB trade value was over $8k but my BMW dealer offerred $6500. I turned into

the devil spawn negotiator. They didn't budge, unless it is a BMW they go off of a fixed price sheet.

I even took a road trip and pretended to by a new VW (hurts to even think about making that mistake twice) from a local dealer. VW offered $7300.

Ended up taking the $6500 from BMW. I knew it would be too painfull to try to sell on my own.

11-10-2005, 02:40 AM	#1
lhoboy8 Enlisted Member 2 Rep 48 Posts Drives: e90 330xi Join Date: Jul 2005 Location: Boston iTrader: (0) Garage List 2000 323ci [0.00] 2006 330xi [0.00]	what to do with a trade-in? Hey guys, My e90 was on the freedom, so it is due to arrive any day now. I was wondering what people generally do with their trade-in vehicle. I'm trading in a 2000 323ci with 45K miles on it. Should I have it washed and detailed before I bring it to the dealer? There are 2 minor dents in the car (people parallel parking into my car), a variety of superficial scratches, and some deep scratches. I've had people suggesting that I detail it, although i'm not sure it's worth the costs. I generally presume that a BMW dealership has a lot more resources to fix a car of their own so I wouldn't be penalized for smaller blemishes. ANyways, what did you guys do? and what should I do? Thanks in advance.
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11-10-2005, 03:42 AM	#2
CPTHALL Second Lieutenant 50 Rep 216 Posts Drives: None Join Date: Oct 2005 Location: Maryland iTrader: (0)	I am in the same boat. I have a 2002 325ci with SP, PP , heated seats. My vehical arrives in Mid December. I can get 19k as a trade. Dont know if I should trade or sell? How much are they giving you for your trade? __________________ 2013 535XI M-sport 2012 Cherokee Overland 2010 BMW S1000rr
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11-10-2005, 05:39 AM	#3
BigDog Major 323 Rep 1,080 Posts Drives: YMB F80 Join Date: Jul 2005 Location: NYC iTrader: (1)	I'm assuming they already set the value for your trade in.... let the dealership handle it, they're not going to pay you for the time and money that you take to fix the car unless they included that in your trade in amount
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11-10-2005, 06:41 AM	#4
pharding Major 308 Rep 1,128 Posts Drives: 23 Audi Q4 e-tron + 14 X3 28i Join Date: Mar 2005 Location: Chicago iTrader: (0)	Don't fix anything. You are allowed x amount of minor dings. However the dealers are generous with someone getting another Bimmer. I usually run my car through a car wash so that it presents better when I turn in my leased cars. __________________ 23 Audi Q4 e-tron; 23 i4 M50 on order 14 X3 Retired: 20 Tesla Model 3 LR AWD; 17 540i x; 14 550i Euro Del; 11 550i Euro Del; 08 550i Euro Del; 06 330i Euro Del; 04 545i Euro Del; 01 530i Euro Del
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11-10-2005, 08:07 AM	#5
lhoboy8 Enlisted Member 2 Rep 48 Posts Drives: e90 330xi Join Date: Jul 2005 Location: Boston iTrader: (0) Garage List 2000 323ci [0.00] 2006 330xi [0.00]	Thanks for the info, but I haven't set the trade-in amount yet since they said it had to be done within 1 month of the sale and I ordered by car 2.5 months ago. Does this change anything? They had told me they will probably give me close to Kelley's Blue Book value - but they had not looked at my car yet. KBB had given me an estimate of just over $15K. But then again, when Lexus initially looked at my trade-in they were would only offer me about $10K - before negotiations. Therefore I'm slightly anxious about the amount that BMW will give me.
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11-10-2005, 09:29 AM	#6
Steve328i Commander, USN (ret) 13 Rep 19 Posts Drives: 11 335i, Black sapphire Join Date: Nov 2005 Location: St. Louis iTrader: (0)	I wouldn't do anything Based on my experiences with a '92 5-series, a '95 325iC, '00 328i, and a '01 330ciC, spending your time and money on detailing the vehicle will not get you anymore on your trade. __________________ Steve328i 2011 335i vert
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11-10-2005, 10:01 AM	#7
BigDog Major 323 Rep 1,080 Posts Drives: YMB F80 Join Date: Jul 2005 Location: NYC iTrader: (1)	they pretty much have a set idea on how much they'll give ya... not much you can do other than negotiate etc... but will it be worth the time and effort? depends how much your time is worth to you...
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11-10-2005, 11:59 AM	#10
obLu Major 50 Rep 1,159 Posts Drives: 330i 6MT ZSP Join Date: Jun 2005 Location: Kirkland, WA, USA iTrader: (1)	Sometimes they're good about trade-in values, but most times not. They'll usually try to get you to take auction value for it. Like the other poster said, be prepared to walk. A 2000? I assume it's paid off, so maybe the sales tax credit might be worth it. Here in WA it's 9.1% so sometimes you can claw back quite a bit of the value from the credit. I just sold my car myself, and while I got my pay off for it, I'm now turning around and forking over 3600 out of my own pocket for sales tax on the new car. Only way I'd sell my car myself again is if I could actually make enough profit to cover the sales tax. I had to spend a lot of time and money to sell that car.
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11-10-2005, 12:27 PM	#11
lhoboy8 Enlisted Member 2 Rep 48 Posts Drives: e90 330xi Join Date: Jul 2005 Location: Boston iTrader: (0) Garage List 2000 323ci [0.00] 2006 330xi [0.00]	I didn't even consider that I would have to pay tax on the sales revenue. In that case, I doubt I could sell my car myself more than the difference including sales tax. Plus all the time commitment, arranging meetings, letting people test drive your car. I just don't think it's worthwhile in this case. But then again, who knows who little the dealership will offer me...
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11-10-2005, 01:32 PM	#12
obLu Major 50 Rep 1,159 Posts Drives: 330i 6MT ZSP Join Date: Jun 2005 Location: Kirkland, WA, USA iTrader: (1)	You don't pay the sales tax on the car you sell, the buyer pays that. But if you trade a car in, you only pay sales tax on the difference between the trade-in amount and the sale price of the new car. In my case, no trade-in = full sales tax @ 9.1%. Which is painful. If I'd been able to sell the car at a 3600 profit then it'd have been worth it. I didn't have much choice though, I owed 28 and they only wanted to give me 21 for it.
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11-10-2005, 01:40 PM	#13
lhoboy8 Enlisted Member 2 Rep 48 Posts Drives: e90 330xi Join Date: Jul 2005 Location: Boston iTrader: (0) Garage List 2000 323ci [0.00] 2006 330xi [0.00]	Would the sale income be included on your tax filings as income? Thus you'd pay tax on this, and obviously you couldn't deduct your expenses for purchasing a new car.
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11-10-2005, 03:27 PM	#14
34Three Enlisted Member 1 Rep 46 Posts Drives: e90 6spd, e36, e30 Join Date: May 2005 Location: Chicago iTrader: (0)	no man, you've already bought the car with taxed dollars...not fair to tax you again on what you got back? Some states don't charge sales tax to buyers of pvt. party sales (like Illinois)...dealers hate this since 9% in chicago is a chunk of change and can make a pvt transaction better for the common folk.
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11-10-2005, 05:32 PM	#15
mc68386 Private First Class 8 Rep 121 Posts Drives: '06 330i 6MT Join Date: Mar 2005 Location: Tucson, AZ iTrader: (0)	You don't have to pay taxes on the proceeds for stuff you sell at a loss (like your car.) There might be exceptions in cases where you had deducted depreciation or something like that. If you buy cars at auction and resell, or sell cars you have fixed up, and make a profit, you'll have to pay tax on the profit. __________________ 2006 330i \| Black Sapphire Metallic \| Black Dakota Leather \| 6SP MT \| ZPP \| ZSP \| ZCW \| Sirius
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11-10-2005, 05:49 PM	#16
David328M-Sport Brigadier General 101 Rep 3,566 Posts Drives: F30 M-Sport 328i Estoril Blue Join Date: Jun 2005 Location: Melbourne Australia iTrader: (0)	I negotiated a fixed price trade in back in feb when i ordered my car. I didnt wash or prepare it for trade in show. After that, I never washed it again although I had new tyres fitted in December 04, which the dealer was most impressed with. That's all I did. __________________ 328i M-Sport, Estoril Blue, Carbon XP 35 Tint, front heated seats, black Dakota, Sports Suspension, Anthracite Headliner, HUD, Pro Nav, Sunroof, hk 600w, Bi-Xenon, 19" 403M wheels, Reversing Camera, DAB+, Xenon, BT Ext Connect, MST turbo intake pipe, MST Cold Air Intake, JB4 on Map 2 with Catless DP produces awesome performance in Sport.
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11-10-2005, 06:26 PM	#17
lhoboy8 Enlisted Member 2 Rep 48 Posts Drives: e90 330xi Join Date: Jul 2005 Location: Boston iTrader: (0) Garage List 2000 323ci [0.00] 2006 330xi [0.00]	yeah, that was my mistake. Funny thing though, I just got out of tax law class and we were talking about deductions on capital expenses, and then jotted a reply down. Completely forgot about the purchase basis. i'm an idiot.
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11-10-2005, 07:18 PM	#18
selm Fight On! 8 Rep 236 Posts Drives: 2006 325i Join Date: Aug 2005 Location: SD, CA iTrader: (0)	I am in the same situation. I have a trade in (infiniti) and the kbb fair trade in value is something like $6300 and good condition is over $7K. The BMW dealer offered me only $5000. I walked away very upset and will never buy another car from that dealer again. Too bad for that dealer, my spouse wants an E90 now, and I will be buying BMWs for the foreseeable future. I know it will not accomplish anything to call them and tell them off, but I really feel like doing it.
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11-10-2005, 10:02 PM	#19
obLu Major 50 Rep 1,159 Posts Drives: 330i 6MT ZSP Join Date: Jun 2005 Location: Kirkland, WA, USA iTrader: (1)	You'll never get anywhere near KBB unless the dealer is making it up on the backend by charging you too much for the car. You'll only get wholesale auction price. It's not like a BMW dealer is going to put a $6000 car on their "pre-owned" lot to try to sell. They reserve those spots for BMW lease returns.
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11-10-2005, 10:06 PM	#20
dubroz Enlisted Member 9 Rep 35 Posts Drives: 2006 325xi Join Date: Aug 2005 Location: Boston iTrader: (0)	I had a 2000 VW Jetta 1.8T, fully loaded with only 55k miles. KBB trade value was over $8k but my BMW dealer offerred $6500. I turned into the devil spawn negotiator. They didn't budge, unless it is a BMW they go off of a fixed price sheet. I even took a road trip and pretended to by a new VW (hurts to even think about making that mistake twice) from a local dealer. VW offered $7300. Ended up taking the $6500 from BMW. I knew it would be too painfull to try to sell on my own.
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