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  BMW Forums » BMW discussion forums » BMW European Delivery
  Break Even

 Break Even



Is Selling at One Year and Breaking Even Possible?
I am hoping to purchase and ED 2005 325Cic and selling it one year later at a break even price. Is this possible? What are the sunken costs that may prevent this? Any thoughts from those with experience would be greatly appreciated.
Trent
   Reply » Break Even

Depreciation during that first year is going to be your biggest challenge. A car (any car) loses the biggest part of its value during the first year. To give yourself a ballpark, go to Kelly Blue Book (kbb.com) or NADA (NADA.com) and check the private party value of a one year old version of what you're looking to buy. That should give you an idea as a starting place.

   Reply » Break Even

It is likely too late for ED of a 2005 model. Also, the new cabs are scheduled to come out in early '07, so you may take a bigger depreciation hit on an "old" model as people wait for the new car.

   Reply » Break Even

Thanks for the tip. The KBB value for the 2004 325Cic is $36,720 which is the ED price for the 2005. This makes me think I could sell it at break even after a year, but I don't know of the other costs.
What additionall fees will I encounter in buying ED?

   Reply » Break Even

Umm...the cost of flying there and staying

   Reply » Break Even

Sales tax and some small purchasing fees...

Also, I asked the same question a while back, and beewang kindly, if not subtly, pointed out his opinion on KBB.

Anyway, I'll try next year and find out the hard way. Since I'm not looking for break-even, but reasonable loss on the transaction, I think there's a chance I'll be happy. I'm also going to try the BMWCCA membership and rebate programs mentioned elsewhere on this fine forum.


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