Real-World Trade-In Values

mdenglund · December 2008

Hi everyone,

I am looking for a bit of advice on a car my wife and I are looking at purchasing. It is a manual transmission 2006 9-3 Sport Combi with ~30K miles and they are asking $16.5K. It has a clean Carfax, new tires and new front breaks (rear are 80%). Based on others in the Mpls, MN area, it looks like a competitive price ~ am I right? Also, it is only under factory warranty until 50K miles, but the dealership offers an extended bumper-to-bumper for ~$1,900 (6 yr or 100K) - based on your experience, is this worth it?

Any and all advice is greatly appreciated!

ateixeira · December 2008

Price on the warranty seems a little steep to me.

I've gotten quotes for a similar warranty on my Toyota for well under $1000.

I know it's a Saab, and parts aren't exactly cheap, but still.

woodyww · December 2008

This $1,900 ext. warranty is not a Saab warranty I take it, but some kind of aftermarket warranty? There are huge mark-ups on those for the dealers, & a lot of warranty cos. go out of business.

At any rate, you've got plenty of miles left on the orig. warranty, & if the car proves to be troublesome, you may dump it by 50K miles anyway. I say pass.

volvomax · December 2008

Trade in $1500 or so.

volvomax · December 2008

Oddly enough, both cars show wholesale values in the same neighborhood.
$20-22k.
I'm a big fan of CPO cars, but they have to be at a Ford or Lincoln store to get the CPO program.

volvomax · December 2008

Figure wholesalse @ $20-21,000

volvomax · December 2008

With a working A/C unit you have about a $3500 car.
So, the car is worth @ $2000 as is.

volvomax · December 2008

Wholesale @ $15,000

volvomax · December 2008

Trade in probably @ $16,000
Private party @ $3-4,000 more.

volvomax · December 2008

Current wholesale on that car is around $12,000
So, I'd hit them for some more discount. Or throw the warranty in.

Make sure the warranty covers EVERYTHING.
I would 100% get the warranty. The price doesn't seem out of line for a European car, provided it is comprehensive coverage.
Make sure you LOVE this car. The only thing that drops faster than a 401K is the resale value on a SAAB.

biker4 · December 2008

Thanks much for the reply. Do options change the prices much? Seems like Nav and other high priced items when new don't attract much in the resale market.

vish_dc · December 2008

Thanks volvomax.

I'm getting the car for $18K, plus $1430 to CPO the car in order to qualify for BMW's 0.9% financing. Any thoughts?

volvomax · December 2008

You are correct, most options count for next to nothing at resale time.
If anything, not having a certain option, like leather seats, will have a negative effect on resale value.

volvomax · December 2008

Is $18k your residual, or did the bank reduce it to that amount?

Either way, you are paying close to retail, plus the CPO.

vish_dc · December 2008

My residual was 23K but they have reduced it to $18K. Looking at sites like cars.com, the uncertified price for my car is around $18K. The lowest price I found was $17K but that was a dealer's "wholesale" price and was for licensed dealers only. Looking at BMW CPO inventory, cars similar to mine are being advertised for $24-25K.

I spoke to a competing dealer who checked and said that my dealer is paying BMW $17600 for the car, so the best he could do is match the $18K.

Where/how would I be able to buy a similar car closer to the $15K price?

[Deleted User] · December 2008

Ouch, didn't think it was going to be pretty...thanks Volvo!

volvomax · December 2008

$15k is wholesale, so you would have to have a dealers license and find a car at the auction.
I think the price you have is fine, you aren't stealing the car, but you aren't getting ripped either.

yatze · December 2008

Location: northern NJ
2006 BMW 530xi
Wagon
Auto transmission
20K miles
Metallic silver/silver leather
Options: Premium package, xenon headlights, heated seats,parking sensor
Condition: Interior - Excellent, Exterior - Good (couple of scratches)
Tires: Good
Brakes: good
Maintenance: all scheduled maintenance has been done (under BMW service plan)

Am reading that folks are getting their residuals reduced. Is that because they have bank financing? Thanks.

soonercat · December 2008

Excellent question on BMW financial vs bank leasing. BMW is taking huge hits on lease returns as the residuals are currently way out of line. My lease is up soon and I can buy same car for 5k less from a dealer vs the high residual. IF BMW was smart they would offer cars to current lease holder for a fair price. My expericence they will not. You turn in car. Goes to auction for 5-6k less and too bad.

cdnpinhead · December 2008

. . .the residuals are currently way out of line. . .

They've been "out of line" for years, but now the chickens have come home to roost (as the Chicago minister pointed out). BMW has been sucking up the upside-down residuals for quite awhile, but it's become beyond sustainable.

I think it's called a house of cards.

The next few years should be interesting for BMW leases.

volvomax · December 2008

Low miles on this one. Probably a $25k car at the auction.

FAIK, BMW Financial doesn't negotiate w/ customers.
They might negotiate w/ your dealer though.

bc13 · December 2008

Thanks Volvomax.

Really like the navigator, but don't like the miles or the dealer.

Does an offer of 23-4 sound unreasonable on the EB Exp?

cjd9997 · January 2009

thanks in advance for your opinion and they offered me 12,300 for my 05 prius with 35500.

R350 4Matic $43,000
775 Iridium Silver $700
141 Black MB Tex
H04 Brown Birds eye wood trim
P01 P01 Package: Teleaid, Hands free communi $4,225
359 : Teleaid
389 : Hands free communication system
413 : Panorama Sunroof
519 : Rear Audio Controls
536 : SIRIUS Satellite Radio
810 : Harman/Kardon Sound System
848 : Power Rear Quarter Windows
890 : Power Tailgate
322 322 Exterior Appearance Package: Blue Ti $1,000
P96 : Exterior Appearance
R02 : All Season Tires (19" Wheels)
R39 : 5-Spoke Alloy Wheels
V59 : Speed and Load Index
691 : Blue Tinted Glass
528 MCS II radio headunit
864 864 Rear Seat Entertainment Package: 2nd $3,050
575 : 2nd Row Center Console
864 : Rear Seat Entertainment
873 Heated Front Seats $700

SUBTOTAL $52,675
DESTINATION & DELIVERY $775
TOTAL $53,450

Vehicle has 22,001 miles on it.

Purchase price $30,390

kyfdx · January 2009

BMWFS won't negotiate with you... but, they may offer you a lower price. If you keep showing an interest in purchasing the car, they may continue to lower that price, as you get closer to the end of your term..

However, if you contact the dealer about buying the car, then BMWFS will no longer make reduced offers.

The dealer gets to buy your car from BMWFS for the MMR (auction) price, more or less.. So, if BMWFS won't work with you, contact your dealer about buying the car.. If the true value is well under the residual in the contract, you may be able to get it CPOed for the same or less than the straight buyout from BMWFS.

regards,
kyfdx
visiting host

georgehughes35 · January 2009

Not trying to start a new thread or get off-topic but I have been researching used Lincoln Town Cars lately and they depreciate like nothing I have ever researched before.

deltheking · January 2009

Hi, I was looking to buy the 2009 Chrysler sebring sedan - LX model.[base model]
The edmunds TMV is $20350. Carmax is listing them for 17k and above.Thats a huge difference.So is the edmunds TMV not updated ?And what price do I negotiate with dealer?Can I take print outs of the listings where it is selling for 17k?
Thanks.

stewardrobbins · January 2009

Spokane, WA
2007 Toyota Camry LE v6
6,000 miles
gray/gray
JBL 6 disc cd changer
Moonroof
Alloy wheels
VSC & traction control
Carpet floor mats
Autodimming mirror w/compass
No dings, dents, or problems - If a car can be "excellent" this is it.

I would like private party sale and dealer trade-in prices, please.

Thank you!

volvomax · January 2009

If they paid @ $20k for it, sure.

volvomax · January 2009

They are about spot on on the Prius.
Man, those things have dropped a ton now that gas is reasonable again.

Wholesale on the Benz is @ $23,000 tops.
So, if they bought the car right, you should have a couple grand at least to negotiate with. Maybe more.

volvomax · January 2009

The falling safe depreciation list:
BMW 7 Series
Mercedes S Class
Mercedes SL
Any big or medium size SUV right now
Jaguar X Type
Ford/Lincoln sedans

volvomax · January 2009

Why not just buy it from Carmax??

volvomax · January 2009

Trade in you are @ $13-14,000

deltheking · January 2009

Because the closest carmax dealer is 400 miles away.If I have to purchase through them,then I would have to pay shipping plus I will be buying a new vehicle unseen.
Any suggestions?Thanks.

volvomax · January 2009

Carmax sells new cars?
I thought they just did used.
If they have an 09 Sebring,chances are it was a rental or something.
So, if you are looking at a Brand New 09 Sebring, their pricing won't help you.

Best bet for a new car is to contact the Internet Dept of the local dealers and ask for a quote.

explorerx4 · January 2009

i think carmax does sell new cars, although not at every location. they ship them to other carmax locations, either.

deltheking · January 2009

Yes, carmax sells new cars as well as used.They sell new cars only at ssome locations.You can buy the car online and they will ship it to you.
So can I show these carmax quotes to the dealer b`cos I prefer to see the car in person before buying it.

erics6 · January 2009

Looking for approximate trade value.

01 Infinity QX4
4wd/awd
59,900 miles
black with tan leather
sunroof, tow package
clean interior and exterior
good mechanical condition
97080

volvomax · January 2009

You can give it a shot.
Worst case, you buy the car from Carmax.

volvomax · January 2009

Somewhere in the $7,000 range.

georgehughes35 · January 2009

My brother wants a Subaru Legacy Wagon, leather interior, 2005-2007 with 30K mile or less. He is willing to pay for it and apparently he will have to b/c there just ain't many on the market that meet his criteria. He is in Wisconsin and the car mentioned above is at Carmax South of Baltimore. I test drive it today and it is in good condition, some minor scratches, scrapes on leather in 1-2 places etc. Drives well, tires are ok but are good for 1-2 years depending on he he drives it. Well, the stats:

28,000 Miles.
Manual transmission.
Leather interior on the LTD.
Heated seats.
That ugly Suby light green exterior and tan interior.
AWD (I guess it goes without saying).
Massive sunroof, skylight which opens is more like it.

Carmax wants $18,000 for it and he would have to get it shipped to Wisconsin for another $450. I paid for the consumer reports pricing (They said $14,000 from dealer) and checked Edmunds (up to $15,000 from dealer). I told him I thought it was a buy before I checked the pricing and it seems like Carmax is really gouging on this one but maybe they are just hard to find used with low miles.

Thoughts?

volvomax · January 2009

That car would probably wholesale in the mid teens, so Carmax asking $18k isn't out of bounds.

georgehughes35 · January 2009

Thank for the input. I sent it along.

longislander1 · January 2009

These guys can give your brother a lot of good advice on buying a Subaru and perhaps offer leads on other cars for sale: http://legacygt.com/forums.

Kirstie_H · January 2009

We also have quite an active group of Subaru enthusiasts who hang out in our Subaru Crew area. They also have a live chat every Thursday evening if your brother wants to ask questions in real-time.

Kirstie_H · January 2009

A reporter from a large national newspaper would like to talk to consumers whose reasons for purchasing cars have changed. In the past, their car might have been the primary reflection of their personality, but now they are basing their purchases on other factors -- cost, features, the environment, etc. If you are interested in speaking to the reporter, please contact ctalati@edmunds.com no later than January 12, 2009.

qbrozen · January 2009

hey vmax,
Think you can help me figure out the mystery with this 2001 V70?
Claims T5, but states 2.4L engine. PLUS, if the decoder I found on volvo's website is correct, this VIN belongs to an XC70. YV1SZ58D611003557
Is that right?
And those wheels don't look like T5 wheels to me, but I can't say I'm an expert in that area on the '01s. No pics of the engine, so no help there.

thanks!

suspendmix · January 2009

Ya, the trade-in and just overall value of the s40 has gone down considerably. I had a 2006 s40 2.4 flint grey auto base with 43k miles in very good condition based in SF bay area. I brought it to 3 dealerships to trade in last month and got offers for $8-10k for it which I thought was ridiculous, especially since KBB and Nada indicated about $13-14k trade in value. I asked for an appraisal from a Volvo dealer in Sacramento and he sent me a listing of the weeks wholesale auctions for the similar S40s, well, those were mostly $7k to 10K. I decided to put it out on private market for $14500 (KBB said $15k for private) and thought I could get $13k for it. Well, long story short, 1 month on private market had 3 people look at and best offer I got was "well, it can't be worth more than $12,000 so give me a figure below that."

Well, this past weekend, looking at MDXs at an Acura dealership, I was finally able to unload the car for $12k, not bad for a trade in and when I checked KBB again, the trade in value had dropped to $12k. When the dealers initially told me there simply was no market for an American made car (i.e. Ford), I scoffed. Well, it took me this long to realize that they were right.

stickguy · January 2009

looks like a nice car Q (from what they show), but the '01s don't have the best reputation.

Wasn't the T5 a 2.4l in those days? I know that the LPT engine went from 2.4 to 2.5l ~ 2005, but was the T5 a 2.3L still in 2001? In any case, that is probably a typo.

It does have geartronic, so that bodes well for being a T5 (in case you don't trust the tag on the back!)

28firefighter · January 2009

Those were the wheels that came as standard on the T5- fancier ones that you normally see were an upgrade. We used to have an '01 T5 and paid for the upgrade.

IIRC, the T5 engine was a 2.3L 5 Cylinder High Pressure Turbo in the 2001's.

Hope that helps.

qbrozen · January 2009

I emailed the seller and he said he put in the wrong VIN by mistake. Here is the correct one:
YV1SW53D411006750

Thanks, firefighter, for the info on the wheels.

So, vmax, what do you think that's worth on a trade? Also, would you by any chance be familiar with the GT on the '01? Does it self-shift even in manual mode? Or does it bounce off the rev limiter, for instance, if I don't shift it?

If I did happen to buy such a vehicle, its intended purpose is for racing, hence the question.

Real-World Trade-In Values

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