Part exchange values (UK) 😙?

[Diavel]

I wondered about peoples different experiences with part exchange (px) valuations at BMW dealerships? I enquired online , with a dealer in the Gloucester area, about a BMW R1200RT with my 2020 S1000XR TE in px which I had bought from them. They have the same  bike for retail sale ,with higher mileage and no BMW panniers at £14245 -their colour is red/white / blue whereas mine is ~Ice grey/lower mileage with BMW panniers .They valued my bike at £10,000 😂 and when I asked the Sales team the reason for the massive difference in valuation between their bike and mine ...the Sales Manager did not reply and the salesman avoided answering the question directly. I am realistic and was not expecting anywhere near £14245 but 30% less 🙄.

[wessie]

£14245 might be the asking price, but will they sell at that price?
Then they will have to put a 2 year insurance based warranty on the bike after a check over in the workshop and fixing any faults. BMW won't be giving away those insurance policies.
Any profit in the bike will be reduced by paying 20% VAT on that profit. If they make £3k profit gross, they will only see £2400 net of tax.
Sales person's commission
That massive complex in Cheltenham costs a fortune to run
The "free" coffee and biscuits need paying for.

and of course, the shareholders in the parent company have school fees and yachts to pay for

[Diavel]

You make valid observations as you know the dealership well it seems 😁.But, at the end of the day, if an overly expensive infrastructure makes them less competitive then it plays into the hands of dealers who have a more manageable cost base and can offer better value?

[wessie]

Originally Posted by Diavel

You make valid observations as you know the dealership well it seems 😁.But, at the end of the day, if an overly expensive infrastructure makes them less competitive then it plays into the hands of dealers who have a more manageable cost base and can offer better value?

They have been in business a long time. I think they know the market they are in. They get a lot of repeat business

[Diavel]

I know I ...was ...a repeat customer.

[Winger]

It’s not just motorcycles or BMW’s,went the electric mountain bike route with Covid etc,it cost not much less than what I paid for my XR in 16,was in the mountain bike shop recently and was in informed that head office had been on the phone ‘No P/X’s

[Gothrick]

Similar story on same model bike to yours - trade in value £10k at a dealership in Nottingham. BMW loyalty to previous customers zero!

[Matt589]

Originally Posted by Diavel

I wondered about peoples different experiences with part exchange (px) valuations at BMW dealerships? I enquired online , with a dealer in the Gloucester area, about a BMW R1200RT with my 2020 S1000XR TE in px which I had bought from them. They have the same  bike for retail sale ,with higher mileage and no BMW panniers at £14245 -their colour is red/white / blue whereas mine is ~Ice grey/lower mileage with BMW panniers .They valued my bike at £10,000 😂 and when I asked the Sales team the reason for the massive difference in valuation between their bike and mine ...the Sales Manager did not reply and the salesman avoided answering the question directly. I am realistic and was not expecting anywhere near £14245 but 30% less 🙄.

The red, white, blue model is the M sport edition, which retails at about £2.5K more. As Wessie said, in reality it’s likely to finally sell for more like £13,250. From my research when I bought a used XR, the going rate for a 20 plate with < 10K miles is about £12.5K retail, which you could likely snag for £12K cash. So offering £10K in part ex seems about right - it’ll return a profit of £1K-£1.5K, which is the bare minimum for a BMW dealer to stay afloat - the financial burden mandated for all dealers by BMW means you’ll be highly unlikely to find a much better deal elsewhere. And luggage counts for nothing with part ex (unless it’s a big tourer like an RT or K16), so you’d get far more overall selling privately, IF the buyer can get to the locks to recode them, as the latest panniers are apparently not re-codable according to my dealer…

[Diavel]

Originally Posted by Matt589

The red, white, blue model is the M sport edition, which retails at about £2.5K more. As Wessie said, in reality it’s likely to finally sell for more like £13,250. From my research when I bought a used XR, the going rate for a 20 plate with < 10K miles is about £12.5K retail, which you could likely snag for £12K cash. So offering £10K in part ex seems about right - it’ll return a profit of £1K-£1.5K, which is the bare minimum for a BMW dealer to stay afloat - the financial burden mandated for all dealers by BMW means you’ll be highly unlikely to find a much better deal elsewhere. And luggage counts for nothing with part ex (unless it’s a big tourer like an RT or K16), so you’d get far more overall selling privately, IF the buyer can get to the locks to recode them, as the latest panniers are apparently not re-codable according to my dealer…

You may be right and the BMW dealers will love you for your understanding. You understand that your part exchange is worth a lot less and you acknowledge that the £800 panniers you have are now worthless 😂 so will throw them in.

Additionally if you think that the price for their bike is £1000 less (may sell) then why would they not give a px allowance of £11,000 plus? Commonly called an "over allowance" ...their terminology not mine.

[Matt589]

Originally Posted by Diavel

You may be right and the BMW dealers will love you for your understanding. You understand that your part exchange is worth a lot less and you acknowledge that the £800 panniers you have are now worthless 😂 so will throw them in.

Additionally if you think that the price for their bike is £1000 less (may sell) then why would they not give a px allowance of £11,000 plus? Commonly called an "over allowance" ...their terminology not mine.

Not my “understanding”. It’s simple facts. Ask any dealer whether they get any more for a bike with panniers. They don’t. No-one is telling you to throw the panniers in for free. And I did get £11k for my 2020 XR with no accessories in part ex, plus £1K off the bike and a £1K deposit contribution. It all depends how well you negotiate and how much room for manoeuvre the dealer has (plus whether the sales person has met their sales quota, or whether the dealership needs to sell more new bikes to meet their quarterly quota, which results in a bonus from BMW that often eclipses the profit from all the bikes sold that quarter). And no-one is forcing you to go with that dealer - I generally get the best prices from my local dealer, but on occasion they’ve not been competitive and I’ve bought elsewhere.