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Ged

Dealer Markups & Depreciation

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Guys

Currently have a 94 cabriolet and am looking at updating to a newer versions. Saw a lovely 2003 330 Cab in CChurch BMW for $65,000 give or take - no doubt a little movement on the price but still bloody hefty!

Hopefully someone can answer the following bits and bobs..

How fast do these depreciate i.e at what point ( age of car) does the depreciation curve start to tail off ?

How much markup does the stealer make on this level of car?

Any ideas how much I could get this for if I was happy to wait and import it myself...I can find out opening bids at the auction houses but can't find final sales prices.

Thanks a bundle

Ged

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Can't answer the question on depreciation as each car depreciates differently - a lot of other factors will also affect how much a car depreciates. General rule of thumb however is it's worth what the next person is willing to pay for it. Majority of times the higher demand cars hold value a little bit better and better condition cars do the same.

As for how much the dealers make ... if you are buying from an authorised BMW dealership the standard margin is $10,000 on every car they trade in. That is to say if they take a car in for say $50K they will advertise it for sale for $60K. However this $10K margin isn't full profit. An authorised dealership will have to spend around about $3K buying a warranty and service plan from BMW NZ and they will allow for about $1500 for servicing and minor repairs - then there's commission to the sales, GST ect leaving a true margin of around about $4500 to play with.

Hope the above info helps.

Edited by M3_Power

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Any ideas how much I could get this for if I was happy to wait and import it myself...I can find out opening bids at the auction houses but can't find final sales prices.

As a general rule, normally add 300,000 to 400,000 Yen to the start price to estimate the final price. From my importing spreadsheet, a car that sells for say 3,000,000 Yen in Japan, would be on the road here in NZ for $NZ45,300 complied & registered.

Happy to email anyone a simple .xls spreadsheet which takes a price in Yen and adds fees etc to give you an on road price here in NZ.

Ron

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My mum bought a 330i recently. They do range in price quite a bit, and the specs vary too. Some have way better kits/wheels etc.

The 325's are a bit cheaper. The 330i goes ok and way more noticable down low, but if you are a cruiser, i wouldn't be adverse to the 325.

You should be able to find a nice pre face lift e46 cabrio for $50k. The 325's go for under that. For $65k i would hope that its a facelift model, in a nice colour, in as new condition.

BWM dealers will rip you off, but i think you'll find that dealers will have the best quality stock. If you can find a good one privately, go for it.

Thing is private sellers bought their car for thousands more not long ago and are taking a big hit. Where as the dealers have bought them way cheaper and are selling for a profit. So IMO you may find little difference in price. (Except BMW dealers, man wtf is with them?)

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