Am I getting my pants pulled down?

[WilliamB]

Firstly if this is an inappropriate post, sorry and feel free to delete!

I went to look for a new car at my local Ford dealership today.

Their prices were keen and I've seen a couple I quite like.

When it came to talking turkey I said I wanted to part ex my BMW.

That's when I got a bit if a shock! They offered my £5,500 which I thought was a bit low.

It's a Nov 2001 on a 51 plate BMW 320iSE with 64,000 miles. It's got leather and 17in 5 star alloys. It has full BMW service history. It's condition is ok. Few minor scratches on the bodywork and some kerbing on the wheels but nothing more than you'd expect for a 6 year old motor. Mechanically it's spot on.

Told the dealer I want to do finance with him which I know is where they really make their money.

I had a search on the web and a few web sites suggested a value between 7k and 7.5k for it which I know may not be realistic etc but was really surprised to see such a difference.

I know a few people on here are far more clued up on this sort of thing than I am.

Question is: Is the dealer taking the proverbial or is it a fair offer?

[JeffC]

I dont think they are far away, they will have be working on shifting it straight on and in the trade they are not very desirable  

from Glass"s guide this month.

if its a facelift model (repeater lights high on the front wings) trade in is £6325

old model (repeater lights above moulding on wing) £5500

hope Im not telling granny how to suck eggs but watch the rates on the finance, you should be able to get sub 4% if they wont walk away you can get it online for that, and dont pay for paymant protection or any paint or upholstery protection another salesman commision dream    

calling swiss to the thread      

[cliveboy8]

Trading a car in against a new one is sometimes disappointing when the dealer values it. I've just had a quick look on autotrader web site and 320iSE's of your age are going for between £5500 and £7000 depending on spec and mileage.

You say the condition of yours is "OK", that would lead me to believe its not in very good condition. Bear in mind the dealer is in business to make a profit, he needs to make your car saleable, if he is intending to put it on his forecourt, which means he will incur costs making it good enough to sell. Most delaers will have between £900 to £1500 profit in a used car so they will be selling it for top book.

The problem with buying cars is that the customer wants as much off the price of the new one as possible, as much for his part exchange as possible, and the lowest rate for his finance. So, where is the dealer to make his profit?

You have the option of taking a loan from the internet, selling your car privately, after spending some money on the wheels and a valet and then seeing what the dealer will do for a "cash" deal. Or, taking the easy route and go with the dealer's offer.

[pistonbroke]

So thats £825 quid for repeater lights  

remind me again why I shouldnt go buy a beemer      

[JeffC]

So thats £825 quid for repeater lights  

remind me again why I shouldnt go buy a beemer      

amongst a few other bits but thats the easiest way to tell    

[adamnreeves]

I once looked into part-ex-ing my BMWer and I almost swore at the salesman. It was a Ford dealership and I wanted to downgrade, yes, you read right. I went along with my 2001 BMW, this was in 2004 so car was 3 years old. It was a 330 Sport with M pack II and was finished in High gloss red. I was pitching it against a Mondeo ST220 of a similiar age. I think it was up at 18K which I thought was expensive but I was hoping for a good partex deal. He told me my car was an import, I said no it isn't as the car was bought from a UK dealer and had the purchase order to prove it, it was bought in Slough. He insisted it was an import, I said well all BMWs are made in Germany, if that's what you mean! He offered me 5K!! 3 months later I sold it for 14.5K privately. If you do not mind waiting then try selling it privately first.

[cliveboy8]

you should be able to get sub 4%

I think you mean 4% flat per annum and pro rata don't you.

Ask what the APR is. Currently lowest on internet is about 6.7% APR.

The dealer's finance more often than not has extra charges in addition to the interest charges. It is not uncommon for there to be an Acceptance Fee or Credit Facility Fee of £150 and an Option to Purchase Fee of about £50.

[Norman Verona]

Agree with Jeff.

If you feel the dealer is taking the p1ss then why not sell the BMW on Autotrader and buy the Ford without a px and negotiate on price.

I think you'll find he isn't by the time you've finished.

ed to ad you can also try doing a px deal on a new BMW and see how that stacks up. Rememeber that the BMW dealer has more margin than the Ford dealer.

[WilliamB]

Thanks all.

It is a facelift model and when I said ok I meant that if I was buying it I'd expect it to be in the condition it is for a 6yr old car!

I had 6k in my mind as an absolute minimum.

I understand that they have to make a slice and I'm sure they will from their sticker price on the new car and the finance. I have no objection to that, but I do when you get squeezed from both ends!

Guess I'll wait and see how much he wants a sale and go for some major haggling. I'm in no rush after all!

Once again, many thanks for the advice.

[Barry Ashcroft]

When I bought the MX5 a few months back no dealers where interested in doing a deal except my local who when I pointed out the drivethedeal.com price was nearly 2k lower they matched the price.

QUOTE

I've just had a quick look on autotrader web site and 320iSE's of your age are going for between £5500 and £7000 depending on spec and mileage.

remember advertised price and what they get can be massivly different

[JeffC]

you should be able to get sub 4%

I think you mean 4% flat per annum and pro rata don't you.

Ask what the APR is. Currently lowest on internet is about 6.7% APR.

The dealer's finance more often than not has extra charges in addition to the interest charges. It is not uncommon for there to be an Acceptance Fee or Credit Facility Fee of £150 and an Option to Purchase Fee of about £50.

yep I meant 4% flat, and you are right on the fees the company I use for the cars I sell have a £195 set up and £100 final value fees, both these wack the apr up, not so bad on a big amount but killer on a small amount.

[BuGsBuNnY]

Try a few dealers, get a price and play them against each other. It worked for me :-)

[Major Stare]

FORD guy might have contacted the BMW dealer for a valuation, some dealers make no money when doing this.

The Ford dealer would be passing this car on, either another dealer or to auction.

Its always dissapointing to get a valuation but it works the other way. The car you want to buy, what are its values on-line/Parkers etc? See if you can find out its stand in value (what it owes the dealer).

[carpetstu]

Dealers used to offer around £1k below book but now it tends to be more like £1.5k below as they take on that they will prob have to clean, de-scratch, mot etc at around £500 - £600 cost to them before they can resell it. Or they will just put it out for bids to the trade and offer you what ever they can sell it straight out for.

Most major dealers will not want a 6yr old car on the forecourt and it will just get jobbed out or auctioned.

Besides the main problem is that we pay far too much for new cars and the resale value is a more realistic price, pro rota, on what it should have been sold for when it was new.

[Carl]

I'd view the deal as a whole.

If your getting a real steal on the car your buying then accept a slightly low p/x. After all is the difference between the p/x and new price that matters.

(he could always give you £6k p/x, however I guess then deal on the new car would change)