Is it viable to trade down with a dealer?
Discussion
Bit of a random one - my friend owns a 2015 BMW 235, value around £18k, and wants to trade down to something like a Megane 265 and free up a bit of cash. Is it a viable idea to trade in a more expensive car at a dealers for a cheaper car and get a car & a chunk of money, or doesn't it work that way round?
Car is finance free and he wants an easy transaction and is worried about selling privately. I've told him best bet is private sale, bank the money then have a free choice, but I'm just asking on behalf, if this is an idea?
Car is finance free and he wants an easy transaction and is worried about selling privately. I've told him best bet is private sale, bank the money then have a free choice, but I'm just asking on behalf, if this is an idea?
Shouldn't be an issue with it as long as your friend realises he will be paying retail price ( or close to it ) for his Megane and getting trade price ( or close to it ) for his BMW.
Dealers don't make their money from the cash difference between the one you buy and the one you trade in, they make it from the difference between the price they pay for a particular car and the price they sell it for whatever way that price is paid.
Of course he will be better off if he can sell the BMW privately but there's no absolute guarantee how long that will take or how much better off he will be, and how long after selling the BMW it will take to find a Megan he likes.
Dealers don't make their money from the cash difference between the one you buy and the one you trade in, they make it from the difference between the price they pay for a particular car and the price they sell it for whatever way that price is paid.
Of course he will be better off if he can sell the BMW privately but there's no absolute guarantee how long that will take or how much better off he will be, and how long after selling the BMW it will take to find a Megan he likes.
You reckon will be as low as WBAC valuation? Would have thought a dealer could shift a BMW 235 a bit quicker than a Megane 265 so maybe they would be willing to go a little higher. WBAC offered £15,200 and equivalents of his model are up for sale at £18.5-20k. I think he was kinda thinking, full price for the Megane, £17k for his car, dealer makes whatever on the Megane and an easy £2-3k on his.
Well he can but try!
Well he can but try!
He can try. But remember, the dealer has got to prep, service and warranty the BMW, at which point the £3k profit starts to fall away. I'd actually try selling the BMW directly to BMW. IME dealers will often pay a decent amount for cars from the brand they deal even if it's not as a part ex.
Use tootle.co.uk if you want a hassle free middle ground. Get your BMW valeted and make it very shiny, take LOTS of high-res pics of it from every possible angle including stone chips/dings/dents/alloys/tyre treads, write an honest description of condition and post an ad on tootle. Then wait for the offers to start rolling in from dealers. No hassle as they (or at least most of them) come and collect your car and BACS you the money via FP before they leave. This is what I did recently when trading down to a shed and by playing the dealers off against each other I got £1100 more than the WBAC/WWYC offers and I reckon I wouldn't have got more than another £500 if I'd advertised it privately, plus there's the added unknown of whether you'll get any interest at the price you have it up for or whether you'll have to drop the price in a month when it's still not sold. £500 was worth it to me to save on that potential hassle.
Speed Badger said:
You reckon will be as low as WBAC valuation? Would have thought a dealer could shift a BMW 235 a bit quicker than a Megane 265 so maybe they would be willing to go a little higher. WBAC offered £15,200 and equivalents of his model are up for sale at £18.5-20k. I think he was kinda thinking, full price for the Megane, £17k for his car, dealer makes whatever on the Megane and an easy £2-3k on his.
Well he can but try!
£15,200 is a good offer for a 2015 M235i from WBAC. Most dealers won't match that as a trade in figure. Well he can but try!
For a nice 265 in desirable spec he won't pocket that much cash between a dealer priced 265 and a trade in figure for the 235i.
He'd need to be looking at an early 265 without key options to pocket a decent sum of cash.
Surprisingly the Megane will probably cost more to run.
Gassing Station | Car Buying | Top of Page | What's New | My Stuff