Unreal trade in allowance

So I traded in my 2010 Lexus GX460 that I bought new back in 2011 to get a 2018 BMW 328d wagon due to steep gas price 8n my region.

My local bimmer dealer offered me a clean $30,000 for my Lexus.. needless to say I signed on the spot because the blue book said my Lexus is worth about $22,000 tops..
It had 100,000 kilometers. Thats about 60,000 miles.
I am still puzzled how they could offer me such an handsome amount.. could it be a mistake??

2010 GX with 100,000 kilometers sell at about $30,000 on used lots here in Great White North.

Not that I have any problem with it.. I still find it hard to believe..

Any thoughts on this??

 

Someone at the dealership made a mistake to your advantage even if it was Canadian money. I recently looked at a 2013 GX460 with the premium package and 48k miles and the seller was asking $27k.

 

So, they gave you $30k for a trade-in that they can sell for $30k and they got you in a new car. Sounds like they are gonna make out well. Doesn't sound like a mistake to me. They did what they had to do to sell you a new car and they made money. Did you finance with them? If so, they made even more money.

 

Also know they could have over allowed on your trade and used money from the new cars "bucket" of money

 

I doubt they won't make any profit.. from my personal experience though, the dealers usually try everything they can to discount trade as much as possible. Rarely do they offer a trade in allowance close to what they can resell for.

 

Buying a new vehicle is a shell and pea game. The three shells are trade in, dealer financing and the actual vehicle price.

The only way you'll ever find the pea under the actual vehicle price is to take the other two shells off the table.

IE don't trade, don't dealer finance. THEN you'll know what you are actually paying for the vehicle.

If a buyer likes their trade value and/or financing deal, they simply paid too much.

 

Moving numbers around on a piece of paper is how it's done.

 

Don’t forget the extended warranty shell.

 

So tell us what the sticker on the beemer is and what you paid for it. That's the other half of the equation on how they are making money.

 

Sticker on the bimmer was $51,000. Its a 2018 328d wagon with m sports.. and 5000 kilometers

 

Did you pay sticker price for it?

 

yes sir

 

WOWSER

 

Lexus holds their value pretty well, BMWs hold value about as well as a tub of warm cottage cheese.

 

I heard the car buying experience once compared to fighting the Hydra..cut one head off and 2 more pop up

 

The only way to fight that monster is with heel dust.

As in when the BS meter goes off, get up and walk.

 

Why would you pay full price without negotiating for a better price. Cars are priced high with the expectation that the buyer will talk down the dealer on the price.

 

Because Beemer.

It's the thing to do.

 

They got you on the purchase price

 

Simple math here people. On paper, they gave him a sweet deal on the lexus trade in, maybe 5k more than he expected (lets value it at 25k). Then he paid full list price (51k) on the BMW without any negotiation, which you could argue is a bad deal. Maybe the BMW was worth 45k. Pool all the $$ together and he netted about 1k off the list price of the car. A fair deal. Where the deal did work in his favor (not sure how this works in canada, eh) is by only paying tax on the difference between the new car price and the sale price of the lexus. Would save you a few grand vs paying tax on the full 51k.