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      11-26-2020, 06:34 AM   #1
jamesinaz
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Ever trade a car less than a year old?

Curious how big a beating one takes if they buy a car and decide that they want something else.

Last summer I bought a 2020 Porsche Cayenne. Let me say it does everything they claim. Drives great. Handles, accelerates, corners, everything is tight.

I have only two complaints. One is the electronics in the car are inferior to the ones I had in my 2017 540i. So I assume newer BMWs will be even better yet. Not that I'm certain I would get a BMW just saying a step down in that area wasn't what I expected. And I use them more often than I use the Porsche's amazing handling.

The other is the payment. Yeah I can afford it. Question is - why? I've had this since June and put 4500 miles on it. It isn't as if I need an expensive car and my needs would be filled with a Honda Passport. Not that I would get the Honda just saying. As to the payment it is large since I returned a leaser and put 0 down on it. Druther have a lower payment and perhaps leasing a BMW will cut the monthly in half although I recognize I build no equity.

I'm not ready to bail but curious if anyone in the business reading this can give an idea of how bad I get hit if I walk from the Cayenne this early. I see a few similar ones listed for sale at around $73k but not many available.

Oh and - HAPPY THANKSGIVING
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      11-26-2020, 09:01 AM   #2
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You're gonna get killed, face it.

I'd suggest spending ten-minutes at a Carmax to get an actual cash offer on it before you try trading it to cut your payment in half. Ha! What are you planning on buying, a used X1? Not only will you build no equity, you likely have a huge negative equity following you around now that may actually be better handled by adding it to another lease. It may or may not offer a lower payment than your current finance payment but at least it will pay off your negative at the end of the term without worrying about the end value. Your Cayenne will continue to depreciate more rapidly than your ability to pay off the principle.
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      11-26-2020, 09:36 AM   #3
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Yea, the first 2-3 years are the biggest depreciation hit - and like mentioned above - that car will depreciate faster than you can pay down the principle. You need to run all the numbers - getting out of that payment may actually cost you more in the long run than if you kept it for another year or two (maybe).
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      11-26-2020, 09:53 AM   #4
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Quote:
Originally Posted by BMWCCA1 View Post
I'd suggest spending ten-minutes at a Carmax to get an actual cash offer on it before you try trading it to cut your payment in half.
My dad recently passed away, and mom doesn't drive, so we decided to sell their car. Went to CarMax this past Monday, expecting the place to be a ghost town. Luckily I made an appointment! I counted 5 other people selling cars to CarMax while I was there. New cars too, like a loaded A6 and a humongous Cadillac SUV of some kind. It was pretty eye-opening to me. People are either bored, or their financial situations are bad.
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      11-26-2020, 11:44 AM   #5
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Have you ever thought of putting it up on Bringatrailer.com
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      11-26-2020, 12:20 PM   #6
jamesinaz
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Quote:
Originally Posted by CYANiDE View Post
Yea, the first 2-3 years are the biggest depreciation hit - and like mentioned above - that car will depreciate faster than you can pay down the principle. You need to run all the numbers - getting out of that payment may actually cost you more in the long run than if you kept it for another year or two (maybe).
Yeah I figured I'd take a hit. Price was around $80k and dealers list used ones similar around $73k. And of course they make money always on both ends of a deal. I am catching up as I didn't take out a 6-7 year loan. Goes against the grain to do a loan for that long on an item I doubt I will still own so on a 5 year loan it IS getting paid down now faster than depreciation. Maybe I need to just live with it for 2 more years and see if it's worth trading.
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      11-26-2020, 12:21 PM   #7
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Quote:
Originally Posted by wdb View Post
My dad recently passed away, and mom doesn't drive, so we decided to sell their car. Went to CarMax this past Monday, expecting the place to be a ghost town. Luckily I made an appointment! I counted 5 other people selling cars to CarMax while I was there. New cars too, like a loaded A6 and a humongous Cadillac SUV of some kind. It was pretty eye-opening to me. People are either bored, or their financial situations are bad.
I got an offer online I can not recall if it was Carmax or Autotrader or who. Was way too low. Maybe I'll try Carmax for more data points.

In regards to the large numbers of people my guess is most are in financial situations. The boredom factor shouldn't be any higher now than normal.
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      11-26-2020, 12:24 PM   #8
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Quote:
Originally Posted by BMWCCA1 View Post
You're gonna get killed, face it.

I'd suggest spending ten-minutes at a Carmax to get an actual cash offer on it before you try trading it to cut your payment in half. Ha! What are you planning on buying, a used X1? Not only will you build no equity, you likely have a huge negative equity following you around now that may actually be better handled by adding it to another lease. It may or may not offer a lower payment than your current finance payment but at least it will pay off your negative at the end of the term without worrying about the end value. Your Cayenne will continue to depreciate more rapidly than your ability to pay off the principle.
Actually I could easily cut my payment in half getting a new X5 if I leased a leftover 2020. I am currently buying a car on a 5 year loan that costs $10-20k more than a decent X5.

And yeah I got it that I might take a hit. If it is just $5-10K might be worth it.
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      11-26-2020, 12:25 PM   #9
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Originally Posted by psuibmw View Post
Have you ever thought of putting it up on Bringatrailer.com
I'll look into it. Thanks
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      11-26-2020, 12:31 PM   #10
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Yeah, I’ve done it too many times (over 30), lol...

I get tired/bored/annoyed with my cars & motorcycles. It’s the only two things I get bored with. Yep, it will cost ya. Price u have to be willing to pay...
It’s weird; I don’t get bored, tired, or annoyed with any one of my other indulgences.

I buy a new car every year and a new motorcycle every other year.
Been doing this since 1990.

I hope to stop this madness if & when I’m content; However, that goes against Benjamin Franklin’s principle...

Cheers & Happy Thanksgiving to all,

P.S. Prayers to those who need it!

B
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      11-26-2020, 12:34 PM   #11
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its gonna hurt a bit trading in / selling a brand new car. especially a high end luxury item that isn't limited. best bet to find out how much it would be worth is checking autotrader and see what people are selling them for.

also i'm not sure how sales tax works in your area. in my state we get a sales tax credit. so if you sell a 70000 dollar car, then purchase a 90k car in 6 months you only pay taxes on 20k. some states i think you are forced to trade in to a dealer to get this credit. some states don't have it at all.
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      11-26-2020, 12:37 PM   #12
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Quote:
Originally Posted by BenDiem View Post
Yeah, Iíve done it too many times (over 30), lol...

I get tired/bored/annoyed with my cars & motorcycles. Itís the only two things I get bored with. Yep, it will cost ya. Price u have to be willing to pay...
Itís weird; I donít get bored, tired, or annoyed with any one of my other indulgences.

I buy a new car every year and a new motorcycle every other year.
Been doing this since 1990.

I hope to stop this madness if & when Iím content; However, that goes against Benjamin Franklinís principle...

Cheers & Happy Thanksgiving to all,

P.S. Prayers to those who need it!

B
I am usually content for 3-4 years so this I hope is a one off. And from what I'm hearing I'm just not gonna make some dealers more money than I have to. Guessing this urge will fade and I'll live with the payment. It isn't as if I see it anyway. it is on autopay from an investment account.

BTW I used to be like you but with guitars. Man did I shuffle through a gaggle of different guitars until I found the ones I was happy with. Now I am about 4 years since I last bought one and have no urge to look.

Thanks
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      11-26-2020, 12:38 PM   #13
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Quote:
Originally Posted by Humdizzle View Post
its gonna hurt a bit trading in / selling a brand new car. especially a high end luxury item that isn't limited. best bet to find out how much it would be worth is checking autotrader and see what people are selling them for.

also i'm not sure how sales tax works in your area. in my state we get a sales tax credit. so if you sell a 70000 dollar car, then purchase a 90k car in 6 months you only pay taxes on 20k. some states i think you are forced to trade in to a dealer to get this credit. some states don't have it at all.
I think I did autotrader but I'll check again. I got nothing better to do today until the wonderful meal being prepared is on my plate.
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      11-26-2020, 12:50 PM   #14
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Check out carvana as well. Two friends of mine sold their cars to them (albeit the cars were older) and they gave them a better deal that was much higher than any dealer or carmax.
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      11-26-2020, 12:59 PM   #15
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Honestly surprised so many people like new cars, most of them shit me to tears with the beeping and warnings and beeping and beeping .... fucking leave me alone ya fucking pest.

Gonna run my 10 year old saab into the ground, at least it fucking shuts it's mouth.
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      11-26-2020, 01:19 PM   #16
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Quote:
Originally Posted by stein_325i View Post
Check out carvana as well. Two friends of mine sold their cars to them (albeit the cars were older) and they gave them a better deal that was much higher than any dealer or carmax.
Haven't done Carvana. Guessing it won't be high enough but "ya never know". Thanks
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      11-26-2020, 01:29 PM   #17
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Once.

I wanted an '18 M2 that stickered for $57K, but the dealer wanted $65K for it.
I bought an '18 IS350 FSport that stickered for $53K, but paid $38K for it.

I waited nearly a year, found the right used '18 M2, and paid $49K for it, and got all my money back on the IS (Lexus knows resale, let me tell you).
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      11-26-2020, 03:14 PM   #18
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Quote:
Originally Posted by Humdizzle View Post
also i'm not sure how sales tax works in your area. in my state we get a sales tax credit. so if you sell a 70000 dollar car, then purchase a 90k car in 6 months you only pay taxes on 20k. some states i think you are forced to trade in to a dealer to get this credit. some states don't have it at all.
Bingo. We traded my wife's ND Miata in for a GTI before the arrival of our daughter - zero sales tax paid.

My unsolicited opinion? Spend more time shopping and driving cars in the segment before choosing one, perhaps even look into a weekend rental.
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      11-26-2020, 04:12 PM   #19
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Quote:
Originally Posted by VisualEcho View Post
Once.

I wanted an '18 M2 that stickered for $57K, but the dealer wanted $65K for it.
I bought an '18 IS350 FSport that stickered for $53K, but paid $38K for it.

I waited nearly a year, found the right used '18 M2, and paid $49K for it, and got all my money back on the IS (Lexus knows resale, let me tell you).
Well, you can call it "resale" value but then you paid nearly 30% off the original list. That's a crazy discount, but happens when they have to give away inventory no one wants.

On the contrary, why would you not just go to another BMW dealership rather than pay a 14% bump on an M2? Great that you got a deal on a year-old one later but that was only $5k to $7k off on a year-old car, depending on how it was equipped compared to the MSRP on the one you passed on. That's actually pretty good resale value!

Which dealership thought they could get you for a 15% "adjustment"? Plaza? Autohaus? I've been selling BMWs for over 40-years and never had the balls to charge a "market adjustment". And I even bought a car from Autohaus (in 1973) back when Willy called it Webster Auto Service.
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      11-26-2020, 04:31 PM   #20
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In order to make a good decison you need good data. The best indicator of what to expect is to obtain the Manheim Market Report (MMR) on the Porsche. It's what most all dealers use for used car valuations and you have to be a dealer to obtain it. It calculates the average sale price for the vehicle across all dealer auctions in the country and tells you the average price It's bringing at that exact moment in time. Adjust up for what should be exceptional condition and down for the opposite. Hopefully someone involved in the business with access to this number will see this and help you out. I'm not involved in the business but an old neighbor of mine was a used car dealer who would take me to auctions from time to time. He educated me on some things and obtaining the MMR was one of them.
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      11-26-2020, 05:32 PM   #21
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Do you have GAP insurance...😬
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      11-26-2020, 06:30 PM   #22
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Quote:
Originally Posted by BMWCCA1 View Post
Well, you can call it "resale" value but then you paid nearly 30% off the original list. That's a crazy discount, but happens when they have to give away inventory no one wants.
You're a bit lost on these comments. The IS350 FSport is highly desired, and it IS resale, try that with a Ford and see how much you get.

Quote:
Originally Posted by BMWCCA1 View Post
On the contrary, why would you not just go to another BMW dealership rather than pay a 14% bump on an M2?
I went to several dealerships, but none wanted to give me the discount I wanted on an aging car with a '19 on the showroom floor. No worries, I'll let someone else take the depreciation.

Quote:
Originally Posted by BMWCCA1 View Post
Which dealership thought they could get you for a 15% "adjustment"? Plaza? Autohaus? I've been selling BMWs for over 40-years and never had the balls to charge a "market adjustment". And I even bought a car from Autohaus (in 1973) back when Willy called it Webster Auto Service.
I wish the STL dealers would have had inventory back at that time, but they didn't, so I had to go elsewhere.

I was very specific about the options/color.
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