Out of the blue I saw a replacement for my 3 series soft top. I always try to buy privately, or ex lease, but colour apart, this had the exact spec I was looking for, so I contacted the dealer. Their best price was 4% discount if I bought by end of the month. And no p/ex. We Buy Any Car valued it at 38% less than their valuation. Poles apart so looks like the soft top is staying.
Their loss, but probably not as someone will be along soon to buy it at full sticker price. With finance.
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Did you factor in all those options to the WBAC value, LL? If they're attractive to you, they will be to others too. (Although not me if one of them is a sunroof.) Say that makes the true value £6,600 (taking a notional screen price of £10,000.)
Then let's assume the dealer wants or needs to achieve a 25% gross margin on the sale, so that requires a selling price of £8,800. OK, still some way below the £9,600 he's offered you - but then he's not even seen you yet. I reckon it's worth a second try, especially as it's almost the end of the month.
I presume you've not told him that it's just the spec you want!
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I told the dealer that a few of the options were desirable, the others not at all! The price difference between their 'best price' and the WBAC valuation was around £8k. I know how much all those options cost. Lots! But at 2.5 yo I would only expect their value to be 50% unless someone better informed knows otherwise. They have my number, and I emailed them to thank them for the prompt & friendly response. I even offered to pay a non refundable deposit, car unseen, if we could agree a price.
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I don't see what the WBAC offer has to do with the dealer's selling price? Whenever I use WBAC to get a guide, they always come back offering more, suggesting that their initial bid is a cheeky rock-bottom below book bid. Of course a dealer is going to ask somewhat more - to pay for all his overheads, including warranty costs. Oh, and a bit of profit!
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>> Of course a dealer
>> is going to ask somewhat more - to pay for all his overheads, including warranty
>> costs. Oh, and a bit of profit!
>>
Blame all those new car buyers beating the dealers down with DtD price matching or they'll walk. A dealer has got to eat so he hits the used car prices.
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>> I told the dealer that a few of the options were desirable, the others not
>> at all! The price difference between their 'best price' and the WBAC valuation was around
>> £8k. I know how much all those options cost. Lots! But at 2.5 yo I
>> would only expect their value to be 50% unless someone better informed knows otherwise. They
Long time back when I speced my A4 Cab I had the same conversation with the dealer about options. In essence he told me some were essential like leather, as nobody would spec one without, so it becomes very difficult to sell without, but the others like ICE upgrades would only be worth about 10% of their value on the used market.
Not sure if it still stands true, but sounds plausible.
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The reality with options or extras is that the vast majority of them don't add to the second hand value at all, just make them easier to resell. As mikeyb says, some cars are however substantially devalued if they don't have what are considered the, "standard" extras.
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BMW 5-Series E61 Touring - Intransigent dealers - WillDeBeest
