Negotiating used car prices

[axxeman01]

Hi All,

There was a bit of this in another thread, but I need some advice specific to my scenario.

I'm looking at a 2001 M5, located here: (link not included, not sure if it's frowned on but better be safe), PM me for the link, but here's the ad description:

2001 BMW M5 84,500 miles:
"This is a beautiful car that has been well taken care of. Inside and out it is almost flawless. The interior has no tears, blemishes and no wear to speak of. The paint is in great condition, it has new front brakes and tires. The rear tires have about 7000 miles on them. Maintained regularly, there are no mechanical issues to worry about. This is a beautiful car to drive and to own."


He's asking 17,500. KBB shows the following:

Fair - 14,900
Good - 16,250
Excellent 17,250

Nada shows:

Avg Trade - 14,725
Clean Trade - 16,725
Clean Retail - 21,850

I plan to pull a carfax as well as schedule a pre-inspection prior to pulling the trigger, but I'd like to get a price nailed down prior to paying $150 for the inspection. IE, "if everything checks out I can give you XXX, does that sound good?" I need to get this number prior because I am going to finance and the bank doesn't write blank checks, they really need me to provide a specific number, so I want to start low and work up to that number, but not go above.

I've had a bud pull the BMW service records, and the only thing he got was the following:

Enhanced Premium Sound,Split fold-down-rear seat,rear side airbag deactivation (this is normal, they are very dangerous for kids in the backseat), Rear sunshades

all service was up to date through the maint plan period. after that, I can not see.

nothing major replaced on it except the flywheel and clutch back in 2004.

Thank you - Chris

[figbo]

If you are married,take her and let her at it!

[axxeman01]

I pulled the autocheck and it was rated a 75, with a similar vehicle range of 75-88, so at the lower end. I think that may be because of 5 owners and a minor accident in the past. Not sure how much the number of owners matters in a practical sense; I'd think more owners would mean more stuff fixed.

[beerformeplz]

Price seems high. Try to get it just below KBB trade in value.

[Naples09]

I think your numbers are bad. Black Book, which most banks use to value a car, lists the following:

Retail - Clean : $18,575
Retail - Average: $14,275

Trade - Clean: $15,760
Trade - Average: $12,010

Black book also lists what a bank should loan on the car and that value is $15,425

You better confirm with the bank how much they can lend on that car, if you have not already.

Based on this info, I would try for a deal at $16000 to $16500 if the car is considered clean. Lower if its average.

Good luck!

[axxeman01]

Thanks Naples, that is the first I've heard of the Black Book. Good stuff! Bank was happy with the 17500, so now it's up to me to negotiate less if it checks out. Thanks again!