I bought a 2009 328 M-Sport Vert Loaded last year at this time. I paid 37,900 for it. It's now worth about 27 on trade in, and I'm struggling to get 29 for it. Is this normal depreciation? Or did I just overpay? I'm shocked at how bad its held its value. This is for a CPO car that is in very good condition, clear carfax, no body work. And very desirable color combo. Did I just get it at the wrong time in its depreciation cycle. I lost 10k in value in 12 months.

Makes me hesitant to even think about another BMW. Is this why most people lease their BMW's? I've had almost 30 different cars through out my life, and have never taken such a beating.

Thoughts?

 

There are a couple things that make it hard to answer this, like no purchase vs current mileage, specs on the car (manual vs auto, packages etc). That being said unless the drove the crap out of it, that seems steep. If it were new when purchased I would expect a drop like that but not on an 09. I haven't had any have that kinda drop either. Don't forget if you purchased at a dealer (which I am assuming since you said it's CPO) that the price you paid is retail, compared to your now private party value.

 

Key part in that statement is "trade-in." I never trade vehicles because it means the dealer makes money off you twice. Much better off selling yourself. Also, you didn't list any options, you did buy a cpo car at a dealer (which costs more), and the new model 3 series is out now with the 4 right behind it.

I believe it is a combination of things.

 

I got trade in numbers after having the car up for sale since April. As far as options the car is loaded. Every option you can get except for the Logic 7 stereo. I've always sold my cars myself and never had a problem until this one.

 

It's normal to lose at least $10K...

 

My suggestion. Be better prepared when walking into a dealership. You should know what to expect, before even entering. The internet has made car buying a lot simpler for most folks. Search and you'll find the information your looking for.

 

IMO, paying $38k for an used 328 is insane. I think you overpaid. I'm assuming your 328 is non-CPO 10-20k miles right? Assuming this, I wouldn't have paid more than $30k last year. I know the M-Sport adds some value, but $8k worth of value is insane.

Let me give you what my car looks like:

2008 E90 M3, Delivered in April 2008. $67k sticker.
June 2010 - sold to me for cash $46k (8k miles), car was valued at $45k in dealer-only auctions.
Today - worth about $41k (23k miles)

I had a higher starting price, and only in the first two years, it took a $10k depreciation a year, but it's a M3 with a $67k sticker! And at this point, the car has hit it's bottom for about 2-3 years until the F30 M3/4 comes out, you can't pick up a E9X M3 for lower than $33k these days (80k~100k mile cars).

a $27k trade is generous, but it's b/c they're making money on both sides of the deal with you, since you're also buying a car from them. i think your 328 is worth about $25k cash right now, being optimistic, selling to the right guy, in California. In the future, i suggest making friends with people online who has access to dealer-only auctions (Manheim) and they will show you some recent auction prices, those are going to be the lowest or baseline figures a used car dealer would sell a used car to you, and also would be the highest they will accept a straight up purchase of your car a-la Carmax.