BMW Depreciates €16 k in one year

mickdw

Je_suis_Jean wrote: »

This isn't aimed at you Casati so is just a general question but why would any car dealer pay more for a trade in than they can purchase the same car for elsewhere regardless of whether elsewhere happens to be the UK or why would they pay more than the amount they believe they can make a decent margin on? I can't think of any industries where someone would willingly pay more for their stock than their competitors.

You are right, they shouldn't pay more than they have to however they should be then in a position to compete with uk prices when they come to retail these cars. They are not even close so they are basically taking the piss with the retail prices.
More people should be going in to dealer and offering a sensible price that would be similar to cost of importing and let them know that they cannot have it all their own way.

mickdw

MarkN wrote: »

The 7.7% on the 5 series is absolute madness in terms of trying to recruit sales (not including fleets) considering the competition.

You can go into Audi and get a much lower rate on a car competing directly for 5 series business. That said, I bought a 3 month old 5 series in 2012 and the rate was pretty similar at 7%.

For me, it's a shame as I think anyone who throws 11k into a car with it potentially being wiped out in 3 years (just to get a monthly repayment you can afford) is mad. I've been very loyal to the BMW brand for the last 10 years but if I want a new car again I'll be getting a Golf GTI or something as BMWs on PCP have become unaffordable for people without hefty deposits. I'm at a time in life where a big deposit like that would be going on a mortgage lump payment or pension not a heavily depreciating asset. Can't believe I've even typed that, I've changed

I don't see 11k deposit as large when talking about a new 5 series. Anything less is totally unrealistic. I do have a problem with the gfv being set so that you get none of it back. zero percent interest or 3.9 percent with the contribution still running would help

carsfan2

I wwas reading in Bimmerpost that in the uk they are already offering big discounts on the new 5 and 3.9% Apr which they can reduce to 2.9% for people trading in f10 models.
This means that in 6 to 12 months there will be a plentiful supply of new model 5 series coming over here much cheaper than what Irish dealers will be looking for them.
At the moment they are trying to have their cake and eat it.
Valuing trade ins at bottom and retailing at the top because they can. I guess they are using the contributions to improve their bottom line not reduce the prices for the punter. By giving a bottom value for the trade in I reckon the contribution only brings you back closer to where you should be in the first place.

54and56

Casati wrote: »

Regardless, dealers in Ireland traditionally valued trade-in's on what they could sell them for less a reasonable mark up and stocking cost. The sale price was/ is based not on the cheapest specific car available from a dealer in the U.K. but the typical price a similar model is selling for.

Sure but if there are no other considerations (see below) then the dealer is effectively deciding to pay more for model X from trade in customer Y than he can buy the same model/mileage etc for elsewhere.

Casati wrote: »

By comparison with U.K. market, you could rightly say they over-valued used cars and paid too much for trade-in's, but by knowing their local customers and market they were still able to make money and look after those customers not just for a single transaction but possibly for their working/ driving life

I don't disagree at all. There's a big difference between price and value. A dealer paying a higher price e.g. €500 for a trade in than he would pay if he bought the same car from an auction (assuming transport and VRT etc is built into the price) could still represent the best value as he's reducing risk by knowing the history of the car and likely getting a sale of another car out of the transaction.

There's always a few variables in the equation but bottom line as you've already said is a dealer has to be able to buy a trade in at a price which will generate a decent margin for him. If buyers are only willing to pay €25,000 for a one year old 318GT (buyers set the price after all) that sets the bar for what a dealer can offer as a trade in.

Back in the day my wife used to work for a large fleet management company in the UK and part of her job was predicting residual values for new car models. Her party piece was explaining to friends how it was cheaper to lease a £35,000 Five series BMW for 3 years than a £28,000 Citroen XM (I'm guessing the actual values from memory) as the Five series had a predicted 40% residual value at the end of the lease implying depreciation of £21,000 over the 3 years whereas the XM had (and I remember this figure exactly) a predicted 17% residual value at the end of the lease and thus depreciated £23,240 over the 3 years.

They didn't lease a lot of Citroen XM's and although the 318GT is a BMW it's a quirky model with limited after market appeal hence the big depreciation hit.

MarkN

mickdw wrote: »

I don't see 11k deposit as large when talking about a new 5 series. Anything less is totally unrealistic. I do have a problem with the gfv being set so that you get none of it back. zero percent interest or 3.9 percent with the contribution still running would help

But there's no incentive for such a large deposit, no cheap rate, deposit needed again in 3 years etc and we're not talking M-Sport here either!

Casati

MarkN wrote: »

But there's no incentive for such a large deposit, no cheap rate, deposit needed again in 3 years etc and we're not talking M-Sport here either!

Yes agreed, overall they seem to be offering really poor deals both on new and used cars.

The punter who does his research is probably mad buying from an Irish BMW dealer, either new or used. Most BMW's here are still massively more expensive new than in the U.K. - even when you net out the 'contribution'.

Still though I would rather like a 520d x-drive Touring!

TheRiverman

Reading those posts has me appreciating my ten year old Peugeot 407 more and more.I used to buy new cars back in the 1980's and 90's,until I realised what a gob****e I was.

carsfan2

Going back to the original post I think that the fact we are talking about a 3 gt is part of the problem. It's not exactly Citroen xm territory but it would be one of their worst performers residually and exaggerates the high depreciation evident on cars now whether "premium" or not.

vintagevrs

I sat in a g30 for the first time today and it's a very nice place to be, but I'm not going to part with any cash over one anytime soon. Chatting to herself about changing her car (f10) , and it'll probably be 2 years time we will buy again. Her car was 2 years old with 15k miles on it when we bought it and seemed to be at the time the sweet spot for value.

The G30 I sat in today was priced at 65k, and didn't even seem to be specified OTT.

A 530e touring would be nice, so if anyone wants to buy one and sell it to me after loosing their shirt that'd be swell.

mickdw

Casati wrote: »

Yes agreed, overall they seem to be offering really poor deals both on new and used cars.

The punter who does his research is probably mad buying from an Irish BMW dealer, either new or used. Most BMW's here are still massively more expensive new than in the U.K. - even when you net out the 'contribution'.

Still though I would rather like a 520d x-drive Touring!

The uk bmw deals (for UK residents) are unbelievable.
6 months payments as deposit and very good monthly. You would have a new 5 series over there cheaper than a mondeo here for sure.

Idbatterim

LOL, nearly the funniest part of my day is driving past the bmw garage i work beside, seeing the sticker price of joke cars like the 3GT and hearing about the sick depreciation, but hey, they have probably gone down from the E200 to the E180 tax bracket! no doubt in a few years the same morons will be on saying their kids are eating cereal 3 times a day and "nobody warned us joe"...

Idbatterim

I sat in a g30 for the first time today and it's a very nice place to be, but I'm not going to part with any cash over one anytime soon. Chatting to herself about changing her car (f10) , and it'll probably be 2 years time we will buy again. Her car was 2 years old with 15k miles on it when we bought it and seemed to be at the time the sweet spot for value.

The G30 I sat in today was priced at 65k, and didn't even seem to be specified OTT.

A 530e touring would be nice, so if anyone wants to buy one and sell it to me after loosing their shirt that'd be swell.

A wise choice, can only imagine what you will be able to bring in a one year old one for in about a year! Id say you could be doing yourself out of 10-15k...

I am assuming with the new bmws, that the msports hold their value a fair bit better?

TimeToShine

BMWs and Audis are grossly overvalued in this country. The 520d in particular has the Germans laughing their arse off, we're paying flagship money for a mid-tier product.

Casati

TimeToShine wrote: »

BMWs and Audis are grossly overvalued in this country. The 520d in particular has the Germans laughing their arse off, we're paying flagship money for a mid-tier product.

What makes you think that?? Here is a year old 520d GT for under 55k. Must be the bargain of the year


I'd love to know what trade-in the buyer of that 520d would be offered in say 12 months time by Joe Duffy. Im thinking less than 30k???


http://www.joeduffy.ie/used-cars/6701742-bmw-5-series-520d-m-sport-gt/

Idbatterim

the 5 series GT is horrendous looking! Also I am in the uk a lot, I see the prices for their cars popping up on online adverts, in the uk, I feel they are good value and would probably go for one of them new over the rivals. Over here, they premium they want is comic! Or should I say, the premium people will pay, is comic!

Lets get real, most are buying a 3 or 4 cylinder poverty spec tractor engine in most cases, it isnt a status symbol!

Brian Scan

Idbatterim wrote: »

LOL, nearly the funniest part of my day is driving past the bmw garage i work beside, seeing the sticker price of joke cars like the 3GT and hearing about the sick depreciation, but hey, they have probably gone down from the E200 to the E180 tax bracket! no doubt in a few years the same morons will be on saying their kids are eating cereal 3 times a day and "nobody warned us joe"...

Were you bullied at school?

Idbatterim

No I wasn't. INthink prople should do their homework before landing out that kind of money on the ****e they get in return for it though. 3 and 5 series gt being key examples. The 4 and 5 series are lovely. Just be prepared to lose serious money here with what BMW charge new, v what they charge in the U.K, particularly With the favourable exchange rate ...

Special Circumstances

Brian Scan wrote: »

Were you bullied at school?

Hit a nerve for ya did he? You had to go straight for the low blow?

Brian Scan

Special Circumstances wrote: »

Hit a nerve for ya did he?

No.