A reader writes:
Steve –
So glad to see you back at TTAC. I've learned so much more about auctions to go along with what you and I discussed a year-and-a-half (!) ago.
I have a question of a personal nature. Well, it's still car-related, but it has to do with MY car, so I guess that's what makes it personal.
I am approaching the end of my CPO on my 2008 BMW 535i sedan. I have kept it in excellent repair (in fact, I've had about $7k in warranty claims since July – oil cooler, oil filter housing, both turbos, water pump failure, and, just last week, a new valve cover gasket). The tires are 10 months old. It's never been smoked in, and it's optioned to the hilt (just missing rear air bags, the fancy window shades, and HUD).
I'm looking to get rid of it before CPO expires on Nov. 27, and jump into a 2014 Mazda 3. Trouble is, I'm not having much luck in finding what seems to be a fair price for the BMW.
This week, I had it appraised at a Carmax in Houston, and a BMW dealer not far away (a second BMW dealer would not even look at it, on account of it having 82k on the clock). The appraisals came in at $13.1 and $14k, respectively. That's way way way under what Edmunds ($16.2) and KBB ($17k) say is the trade-in value.
Perhaps Carmax and Momentum BMW gave me low numbers because I wasn't looking to buy another vehicle from either place (and I'm assuming either one would just wholesale my car). I dunno. I am quite baffled over the discrepancy between their offers and what Edmunds and KBB say. Is there another online source I should check out? Should I ask someone at my bank (Chase) to look at something I've heard called "Manheim" (which, as I understand, is a super-secret set of numbers dealers often use to arrive a trade/sell prices).
As an aside – one thing that both Carmax and the BMW dealer mentioned when they gave me the disappointing bids was a re-spray job on the trunk and driver's rear quarter panel. I told them both that was done to repair some vandalism that occurred last year in NOLA.. and pointed out that they would have deducted even more had I left the scratches, etc. as is. Also, I had the work performed at a body/paint shop that is owned by the same company as the BMW dealer, so there.
I would sincerely appreciate any advice you have to offer. And, thanks in advance for taking time out of what I'm sure is a busy day to help.
Steve Says:
The trick to keeping the German machinery is to get the ones that have the most common powertrains with the fewest bells and whistles possible. Avoid 4matics and other all-wheel-drive systems. Cross out the active suspensions, dual turbos and navigation screens as well, and you are generally fine.
Unfortunately, your car represents the exact opposite of fine. Sell it.
How do you do that?
Forget about selling it to a re-seller. That's like paying someone $1500 for a repair that costs maybe $200. Oh wait, you almost did that a few times this year. See, that CPO warranty saved your ass, and now it's time to park this Barnacle Bitch of a car, and haul your ass to a less costly ride.
Sell it on Autotrader, Cars.com, Craigslist, and especially… local enthusiast forums. This vehicle received the very best of care for the time you owned it. An honest guy like you deserves to be saved from the, "lowballers r' us" brigade.
When you advertise it, emphasize the CPO history and all the repair work that was recently put into it. I know it sounds strange. But telling people you recently replaced the turbos in an under-engineered piece of shit car like this with a new factory unit is a big plus. It's akin to the early 2000′s Chrysler minivan buyer finding out that your ride has a new factory transmission. Or an old Mark IV Jetta buyer finding out all four window regulators have been placed.
They won't be surprised. They will be relieved. Your CPO warranty bit the bullets that the buyer wants to dodge. So let em' know about it.
This is the time of year when people don't have much money. There are no holiday bonuses. No tax returns, and no commercials that show oversized bows on overpriced cars. The used car market dies out a bit in October and November, so don't be surprised if it sits for a bit.
As for pricing, I would recommend you average out the three most common mainstream pricing sites for "good to very good condition"; KBB, Edmunds, and NADA. Deduct maybe 5% for the accident and the fact that you want to get this car out of your life, and let the laws of economics take their course. Manheim offers a wholesale pricing guide called the Manheim Market Report. It's useless for retail. You want retail prices and those three do a fairly good job at pricing the market.
Stay positive and make em' pay retail because, let's face it, that's how you bought this son-of-a-bitch.
Consider this to be a golden opportunity to shape up on your picture taking and writing skills. Tell some stories and post 12 to 27 high res pics. Offer some healthy links that highlight owner based reviews for your audience. If you revel in providing better advertising than those lazy retail establishments then maybe, just maybe, you'll get a multi-thousand dollar return on your time.
It's a risk I would take. So sell it straight and when it goes down the road, count your blessings… and your Benjamins.
from The Truth About Cars http://www.thetruthaboutcars.com
Put the internet to work for you.
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