[crbalch]

Hey All,

I am about to order a 2016 M235i and was wondering if you think this is a good deal.

2016 M235i xDrive Coupe ($46,150)
Estoril Blue Metallic ($550)
Parking Assistance Package ($950)
Tech Package ($1950)

Total: $50,595
---
Sale Price: $48,200

Trade in value for my 2012 135i w/ 17k miles: $25,000

Net: $23,200
Doc: $168
Tax: ~$2000
Fee: $211
---
Total out the door after fees, etc: $25,840
1k rebate - $24,840

Ill finance the 22k at 1.9% and put another 2.8k down

Thoughts would be appreciated!

edit: updated sale price and trade in value

[igom3]

Negotiate price down, and your 2012 135i is worth more than 24k. JMO

[crbalch]

Apparently their profit margin is only 6% now and with this deal I'm taking 4% of that...what do you think would be reasonable for a price?

Also I know my car is worth more than 24k, but keep in mind its a dealer trade so its hard for them to come up much more...I look at it as 26.5k with the tax savings in mind. So if I sell my car privately before the order comes in anything over that and it'll be profit. Hopefully try to get 28 or 29 for it privately.

[opfreak]

get a quote from carmax.

[Cyberdemon]

Sell your car privately, even if you need to rent a car for a few weeks it would likely be better in the long run then the trade.

Generally speaking invoice is 7% below MSRP. They are making $1500 over invoice on that deal, before any holdbacks or incentives.

With the trade in, it is much harder to negotiate. Ultimately even if you negotiate a great deal on the car, they're likely making that money up on your trade. I just had a co-worker work multiple dealers to negotiate 5k off MSRP, only to find out they under-valued his trade by nearly $6k. Dealers do this for a living.

I would take that price and find some other local dealers and offer them $45,700 which is about $500 over invoice.

[crbalch]

Appreciate the input, I will go to another dealer today and see if they can get below that 46k mark like you suggested.

Thanks,
Cam

[ralawren]

Definitely check CarMax and other BMW dealers for the trade. If your car is clean they all should want it, especially BMW who can certify it. Don't forget to check and see if there is a sales tax credit if you include the trade on the purchase agrreement for the new car. In MD it was worth 6% of the trade in value. That is over $1000 you would lose if you sell your self or sell to CarMax and purchase from another dealer.

Fun huh!

[crbalch]

Originally Posted by ralawren

Definitely check CarMax and other BMW dealers for the trade. If your car is clean they all should want it, especially BMW who can certify it. Don't forget to check and see if there is a sales tax credit if you include the trade on the purchase agrreement for the new car. In MD it was worth 6% of the trade in value. That is over $1000 you would lose if you sell your self or sell to CarMax and purchase from another dealer.

Fun huh!

By sales tax credit do you mean by trading it in it reduces the sale price in turn reducing the tax?

[ralawren]

Right, in some states like Maryland and North Carolina you only pay sales tax on the difference between the sales price and the trade in value. I.e. Buy a car for $40k, trade in $20k. You only pay tax on the remaining $20k. Saving you $1200 if tax is 6%.

But this only works if the trade is on the bill of sale or sales contract. Last year I sold my 2012 Mercedes to CarMax and bought a used Boxster out of state. Cost me $800 in extra sales tax.

[crbalch]

Originally Posted by ralawren

Right, in some states like Maryland and North Carolina you only pay sales tax on the difference between the sales price and the trade in value. I.e. Buy a car for $40k, trade in $20k. You only pay tax on the remaining $20k. Saving you $1200 if tax is 6%.

But this only works if the trade is on the bill of sale or sales contract. Last year I sold my 2012 Mercedes to CarMax and bought a used Boxster out of state. Cost me $800 in extra sales tax.

Yep exactly what I thought you meant. For me my sale price is 48k so if I trade in for 25k I will be paying the 9.5% on 23k.

I would need to sell my car for at least 27.5k in order to break even with the tax savings.