How to make money off cars – my new 2005 BMW 325i E90 with iDrive - part 2

posted Dec 12, 2009, 11:50 PM by Quentin Ballard Tremeer   [ updated Dec 16, 2009, 6:01 AM ]

Light Grey BMW 325i E90 side viewThe next closest BMW dealership didn’t even phone me back when I left a message with the “used approved” manager to phone me back about having this car on consignment. I was looking at this option as I thought I may have better luck selling a BMW through a BMW dealership………. Seems they even don’t know the things that I am telling you here………… they are either still buying cars for too much AND/OR trying to still sell them for too much as they are not moving many and need to make their margins…… quite opposite to what you would have imagined….. it seems to be the medium sized private dealerships that have adapted to the new market and not the big guys………they kind of dug their own grave as they did not adapt to the change in prices in this new climate quickly enough as they were heavily leveraged in the beginning of the dip…………….. and didn’t follow my point 1 below…………..
So, in summary, what did I learn:

1.       Release cash quickly. Take the first reasonable offer you receive. Hanging on arrogantly too long for the exact price you want will dilute your return….. you could be investing in a car with a better return…………. people aren’t stupid ……… if the car has been sitting there for a long time…. Even if the dealer plays the favourite trick of advertising……. then not advertising…….. then advertising again with a different picture and price…… the guy who has regularly visited the dealership and is serious about buying will get you down on your price.

2.       Price right by looking at similar cars in your local website or auto trader magazine.

3.       Sell through guys that will give a guarantee to the buyer.

4.       Sell through guys that are part of a group and who will not be “gone tomorrow”….. test this by looking at the prices they are selling cars for and asking them how they are finding business….. you will get a good idea from the “round about” answers they tell you.

5.       The money you pay in commission to a re-seller is well worth it as most buyers are wanting to trade in a car in on another (as you have seen, it is HARD to release cash from a vehicle especially in our current economic climate). As a private seller you can not give a guy a trade in………… well you can, but then you end up trying to sell a car that is worse than the car you have…….. risk is higher with older cars …. Poor maintenance etc etc……..

6.       Buy a car that is WAY below the retail price otherwise you are not going to make money (dealerships do this by taking your trade in from you for a very low price…..).

7.       Don’t over extend yourself financially. Buy cash, DON’T borrow money, even from family. Borrowing money means you will feel financial pressure to take a bad offer and not show confidence in your sales negotiation.

So now there is the hassle of registering the car in my name. I know that there are guys who will stand in the queue for me for a fee but I’m not too sure that in these times that they won’t register the car in their own name……… ok I can fully fill out the papers and send them with someone……….. I am sure I will find a good solution that manages my risk well….. I will share it with you in the next article as I complete the next step……I also need to find a better way to cover myself for defrauding of payment / the dealership going bust….. I will find it and share it with you………..
I think I may get away with transferring ownership straight from the previous owner to the new owner. I just have to figure out how I am going to cover my risk with the car never having been registered in my name………. the insurance company did however have sight of the vehicle……… they don’t seem to happy to cover for defrauding of payment though………….

Anyway, step one accomplished (freeing up cash) to buy the next car…… creating a little extra un-necessary stress for myself along the way…….. by borrowing money for the next car by being impatient when seeing a good deal…….. I don’t recommend this……… being patient is much less stressful….. when you have a car you haven’t paid for…………… and another car that you in turn have sold but have not been paid for…………. the stress level is quite high…………… hence the flu………….

The biggest thing I learned that I want to share with you though is this:

I always wondered what cars the rich drive………….. I was always amazed by the frequency that they changed their cars……….. I thought that they had money to burn in paying the commission to dealerships every three months……..but NOW I understand what they were doing……… I have driven a very nice car, the 2005 BMW 325i E90 Auto with iDrive (see my video review coming soon) for a whole month and it hasn’t cost me ANYTHING in depreciation, tyres, maintenance ………. It’s been FREE…. Other than the petrol and insurance I have paid for……… AND I am going to make money off of it that will cover this and still yield me a profit………… Ok I have to drive a 1998 Toyota Cressida 2.4GLE for the time in between cars………. Small sacrifice…….. and still a very comfortable and relaxing car to drive……. I will eventually get to the point where I can split the cash I have in half as I continually make more money of each vehicle I sell………..and I will then drive the new car I have bought while I sell the other one therefore cycling between cars……………… AINT RECESSION A BEAUTIFUL THING.

BMW Pictures:

 

 

Light Grey BMW 325i E90 side view

 

               Silver 325i BMW E90         2005 BMW 325i E90 iDrive

 

 

Side View BMW E90 Charcoal

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  Tags: BMW 325i E90 with i Drive, BMW i Drive, 2005 BMW 325i, BMW E90 Auto

 

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