Any Advice...Dealer offer to trade in 2019 X5

JROCK973R · 01-28-2021, 10:50 AM

I received a letter from my dealer offering a trade in deal that will put me in a 2021 X5 with no cash out of pocket. They say that the used market is huge right now. I have made 24 payments on a 48 month finance. Has anyone done this, and does it make any sense to do this?

See attachment

If this has been discussed previously I apologize. I tried to search it.

TurtleBoy · 01-28-2021, 12:33 PM

I would say ignore all numbers in that letter given it is a marketing tool. If you want to get a new one, or see what it would cost, give them a visit and get the actual details of what the deal would look like for the vehicle you want. Then you can decide whether to proceed or not.

JROCK973R · 01-28-2021, 02:17 PM

I understand. I was hoping someone could steer me by saying that "the used car market is really killing it, I'd go for it" or "that would be stupid to lose all that equity you already have in the car". I went and looked and realized they haven't done much in the last 2 years, but then I got the itch when I was thinking about how it would be nice to get some of the options I didn't get the first time.

gqgambler · 01-28-2021, 02:35 PM

Generic marketing letter. That being said the used car market has been a boom since COVID hit and dealers have been low on inventory. The question is what kind of deal are they willing to give you and what does that put you in. Do they have something on the lot that you want? Can they give you an early build slot? Can you afford to step up your options? Do you want to step up from a 40i to M50i? etc? Probably all questions we can't answer for you, given we don't know your desires or financial situation. They are probably advertising a pretty generic build to tell you your payment will be the same; it might not be the build that you want. If you move on your car now you will be beating the 3 year lease turn-ins that will start end of the year and into next, when that happens your car won't be as desirable because the market will become flooded.

GOLFFRR · 01-28-2021, 02:40 PM

Marketing thing to get you to come in. However x5s are holding pretty solid value right now (in our neck of the woods) so you may be able to get into a 2021 for close to same payment but not sure about what offset etc.. you would have to do. The only way to know is for you to go in and get a full breakdown of the deal and go from there.

JROCK973R · 01-28-2021, 04:09 PM

I am more interested than I was initially. I would like to upgrade wheels, get third row seating, trailer hitch and the driving assistance pro package. Payments will be the same plus probably a grand out of pocket for the extras. I appreciate all of your inputs. Again, if someone said it was stupid, or it looks like a great idea, the decision would be easier. Could the next person to reply please cut and paste the following: Hey man, you should really do it. In the end you'll be happier with your car, and your current car will never be as valuable as it is now. It makes a whole lot of sense when you really weigh it out."

Thanks again!

arciga18 · 01-30-2021, 07:49 PM

I have a 2020 x5. 75.5 msrp

Msport
Black on black
Msport brakes
Air suspension
Other standard goodies at this price point.
5900 miles

I have gotten offers from 52k to 55k.

I know trade in numbers suck on average from a buyers perspective but I have not been impressed.

So I would be careful. You are going to get the BS story of we could buy the car for xxx brand new .

I'm looking at a 28 percent loss Vs msrp which is kinda ridiculous if the used market is good.

Also, this is a bread and butter bmw. Not a stripper model . Also not a niche x4/x that dealers claims they cannot sell because no one wants them.

NickyF25 · 01-31-2021, 10:35 AM

Quote:

Originally Posted by arciga18

I have a 2020 x5. 75.5 msrp

Msport
Black on black
Msport brakes
Air suspension
Other standard goodies at this price point.
5900 miles

I have gotten offers from 52k to 55k.

I know trade in numbers suck on average from a buyers perspective but I have not been impressed.

So I would be careful. You are going to get the BS story of we could buy the car for xxx brand new .

I'm looking at a 28 percent loss Vs msrp which is kinda ridiculous if the used market is good.

Also, this is a bread and butter bmw. Not a stripper model . Also not a niche x4/x that dealers claims they cannot sell because no one wants them.

Not ridiculous at all IMO. You will always take a beating trading in a barely 1 yr old widely available car, especially a luxury brand. And when most can buy new for an 8% discount why would anyone pay a high price on a used car. In Nov, 19 we got an 18 month old CPO 2018 3.5i MSport very well equipped with 7200 miles for $51k ($75k orig. MSRP), and KBB good value on our 7.5 yr old MDX, so am guessing trade in was between 45 and 48 at most.

arciga18 · 01-31-2021, 01:23 PM

Quote:

Originally Posted by NickyF25

Quote:

Originally Posted by arciga18

I have a 2020 x5. 75.5 msrp

Msport
Black on black
Msport brakes
Air suspension
Other standard goodies at this price point.
5900 miles

I have gotten offers from 52k to 55k.

I know trade in numbers suck on average from a buyers perspective but I have not been impressed.

So I would be careful. You are going to get the BS story of we could buy the car for xxx brand new .

I'm looking at a 28 percent loss Vs msrp which is kinda ridiculous if the used market is good.

Also, this is a bread and butter bmw. Not a stripper model . Also not a niche x4/x that dealers claims they cannot sell because no one wants them.

Not ridiculous at all IMO. You will always take a beating trading in a barely 1 yr old widely available car, especially a luxury brand. And when most can buy new for an 8% discount why would anyone pay a high price on a used car. In Nov, 19 we got an 18 month old CPO 2018 3.5i MSport very well equipped with 7200 miles for $51k ($75k orig. MSRP), and KBB good value on our 7.5 yr old MDX, so am guessing trade in was between 45 and 48 at most.

I put in a disclaimer — " if the used car market is good." .

I agree with you. It also normal and expected . Two different things . You could also make the argument that people should demand 10-12% off the new car because they lose their value immediately. Run that by a car dealer and see what they counter with.

There is also a big issue with trade value. Auction ... trade ,,, private party.... dealer retail .... cpo retail . imagine an anxious buyer with deep pockets shows up and gets xxx on the trade that you mentioned. He doesn't care. You show up and swing a great deal on a cPO. The car dealership makes enough money on the used to be happy. They probably made more on the used car than the new car.

Did the person that traded the car in get top money for the trade?

I was trying to help the OP who is motivated to get a new car and may not like the numbers they show him.

beermato · 02-26-2021, 04:02 PM

Funny, I received the same letter (specific to my loan, VIN, etc.) and came here with the same question as the OP - is it a good deal, or am I missing something. I haven't run the numbers or asked the dealer for specifics, but it surprised me that they would propose that I could trade my 2-year old car in for a 2021 version and the payment would be lower.

I realize the "payment" is usually the last thing you care about in negotiating a car deal, but it appears to imply a much higher trade value than I would have assumed. I would have thought if I took my 2019 X5 to the dealer and wanted a new one, I would have additional downpayment, etc. to make up shortfall, not a wash.

01-28-2021, 12:33 PM	#2
TurtleBoy General 13242 Rep 19,746 Posts Drives: 2019 X5 40i,2021 M340i Join Date: Jan 2019 Location: Colorado iTrader: (0)	I would say ignore all numbers in that letter given it is a marketing tool. If you want to get a new one, or see what it would cost, give them a visit and get the actual details of what the deal would look like for the vehicle you want. Then you can decide whether to proceed or not. __________________ 2021 BMW G20 M340i xDrive - Verde Ermes/Black - 03/2024.40 2019 BMW G05 X5 xDrive40i - Phytonic Blue/Cognac - 11/2023.50
	Appreciate 0 Quote

01-28-2021, 02:17 PM	#3
JROCK973R Enlisted Member 10 Rep 30 Posts Drives: 2016 X5 Join Date: Nov 2018 Location: Essex County, NJ iTrader: (0)	I understand. I was hoping someone could steer me by saying that "the used car market is really killing it, I'd go for it" or "that would be stupid to lose all that equity you already have in the car". I went and looked and realized they haven't done much in the last 2 years, but then I got the itch when I was thinking about how it would be nice to get some of the options I didn't get the first time.
	Appreciate 0 Quote

01-28-2021, 02:35 PM	#4
gqgambler Major 716 Rep 1,449 Posts Drives: Fast & Furious Join Date: Jun 2018 Location: Beast from the East iTrader: (1)	Generic marketing letter. That being said the used car market has been a boom since COVID hit and dealers have been low on inventory. The question is what kind of deal are they willing to give you and what does that put you in. Do they have something on the lot that you want? Can they give you an early build slot? Can you afford to step up your options? Do you want to step up from a 40i to M50i? etc? Probably all questions we can't answer for you, given we don't know your desires or financial situation. They are probably advertising a pretty generic build to tell you your payment will be the same; it might not be the build that you want. If you move on your car now you will be beating the 3 year lease turn-ins that will start end of the year and into next, when that happens your car won't be as desirable because the market will become flooded. __________________ No. Try not. Do. Or do not. There is no try. -Yoda
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01-28-2021, 02:40 PM	#5
GOLFFRR 10816 Rep 27,599 Posts Drives: GOLFFRR cart Join Date: Mar 2009 Location: we sell BMWs to "ALL" US states iTrader: (4)	Marketing thing to get you to come in. However x5s are holding pretty solid value right now (in our neck of the woods) so you may be able to get into a 2021 for close to same payment but not sure about what offset etc.. you would have to do. The only way to know is for you to go in and get a full breakdown of the deal and go from there. __________________ BEFORE YOU BUY YOUR NEXT BMW, EMAIL OUR GUY KOTE FIRST! Kote M Sales:Kotem@bmwofcamarillo.com Cell:805-368-9101 vipfinance@bmwofcamarillo.com for warranties!
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01-28-2021, 04:09 PM	#6
JROCK973R Enlisted Member 10 Rep 30 Posts Drives: 2016 X5 Join Date: Nov 2018 Location: Essex County, NJ iTrader: (0)	I am more interested than I was initially. I would like to upgrade wheels, get third row seating, trailer hitch and the driving assistance pro package. Payments will be the same plus probably a grand out of pocket for the extras. I appreciate all of your inputs. Again, if someone said it was stupid, or it looks like a great idea, the decision would be easier. Could the next person to reply please cut and paste the following: Hey man, you should really do it. In the end you'll be happier with your car, and your current car will never be as valuable as it is now. It makes a whole lot of sense when you really weigh it out." Thanks again!
	Appreciate 0 Quote

01-30-2021, 07:49 PM	#7
arciga18 Brigadier General 1729 Rep 3,654 Posts Drives: LeMans/ Chestnut E90, RWD Join Date: Apr 2012 Location: Chicago iTrader: (3)	I have a 2020 x5. 75.5 msrp Msport Black on black Msport brakes Air suspension Other standard goodies at this price point. 5900 miles I have gotten offers from 52k to 55k. I know trade in numbers suck on average from a buyers perspective but I have not been impressed. So I would be careful. You are going to get the BS story of we could buy the car for xxx brand new . I'm looking at a 28 percent loss Vs msrp which is kinda ridiculous if the used market is good. Also, this is a bread and butter bmw. Not a stripper model . Also not a niche x4/x that dealers claims they cannot sell because no one wants them.
	Appreciate 0 Quote

02-26-2021, 04:02 PM	#10
beermato Second Lieutenant 102 Rep 240 Posts Drives: 2019 X5 Blue Join Date: Dec 2018 Location: Texas iTrader: (0)	Funny, I received the same letter (specific to my loan, VIN, etc.) and came here with the same question as the OP - is it a good deal, or am I missing something. I haven't run the numbers or asked the dealer for specifics, but it surprised me that they would propose that I could trade my 2-year old car in for a 2021 version and the payment would be lower. I realize the "payment" is usually the last thing you care about in negotiating a car deal, but it appears to imply a much higher trade value than I would have assumed. I would have thought if I took my 2019 X5 to the dealer and wanted a new one, I would have additional downpayment, etc. to make up shortfall, not a wash.
	Appreciate 0 Quote