BMW 740il

[Real1]

My latest inventory: 2001 BMW 740il

Here is my latest inventory

2001 BMW 740il w/86,200 miles


Acquisition Price: $18,300
Target Sale Price: $21,000


I'll be the first to admit.......we overpaid for this one. We should have got it for low a max of about $17,500.

Although all of the pricing guides show that the trade in value is about $19,500, the private party is about $22,000 and the retail is about $25,000, it appears the true market price for this car will likely be about $20,000. We won't lose money on this car (and I'm going to be driving it some until it sells), but we won't make the $3k to $4k that we want to make on a $18k investment. We are able to make $2k on cars that we acquire for less than $10k, so if we spend twice as much on acquisition, we want to make twice as much profit. I'll let you know how it goes.

It's a nice car that turns alot of heads even with it being completely stock (no rims, window tent). It has a 282 hp engine that gets it from 0 to 60 in 6.3 seconds. I know because I ran it from a dead stop to 60, 3 times in a row to confirm speed. It has navigation and a run flat tire system. The rear seat is like flying first class. It's going to make someone a proud owner. Why do people spend 60k on a new car when you could buy 2 or 3 late model high end cars for the same price?!?!

Since Thanksgiving '05, we have sold the following vehicles

1999 Range Rover
1997 Jaguar XJ6
2000 BMW 528i
2003 Acura 3.5 RL
and now this 2001 740il is in the process

For our next acquisition we may break the 30K price barrier on acquisition.


<a href="http://i79.photobucket.com/albums/j133/realstar1/Pictures228.jpg" target="_blank"><img src="http://i79.photobucket.com/albums/j133/realstar1/th_Pictures228.jpg" border="0" alt="" /></a><br />
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[TENT]

Re: My latest inventory: 2001 BMW 740il

damn good job man.

you sound smart and sensible.. learning and improving as you go along is what it is all about...

soon you will be doing 10 deals at a time man.

keep doing your thing.

Here is my latest inventory

2001 BMW 740il w/86,200 miles


Acquisition Price: $18,300
Target Sale Price: $21,000


I'll be the first to admit.......we overpaid for this one. We should have got it for low a max of about $17,500.

Although all of the pricing guides show that the trade in value is about $19,500, the private party is about $22,000 and the retail is about $25,000, it appears the true market price for this car will likely be about $20,000. We won't lose money on this car (and I'm going to be driving it some until it sells), but we won't make the $3k to $4k that we want to make on a $18k investment. We are able to make $2k on cars that we acquire for less than $10k, so if we spend twice as much on acquisition, we want to make twice as much profit. I'll let you know how it goes.

It's a nice car that turns alot of heads even with it being completely stock (no rims, window tent). It has a 282 hp engine that gets it from 0 to 60 in 6.3 seconds. I know because I ran it from a dead stop to 60, 3 times in a row to confirm speed. It has navigation and a run flat tire system. The rear seat is like flying first class. It's going to make someone a proud owner. Why do people spend 60k on a new car when you could buy 2 or 3 late model high end cars for the same price?!?!

Since Thanksgiving '05, we have sold the following vehicles

1999 Range Rover
1997 Jaguar XJ6
2000 BMW 528i
2003 Acura 3.5 RL
and now this 2001 740il is in the process

For our next acquisition we may break the 30K price barrier on acquisition.


<a href="http://i79.photobucket.com/albums/j133/realstar1/Pictures228.jpg" target="_blank"><img src="http://i79.photobucket.com/albums/j133/realstar1/th_Pictures228.jpg" border="0" alt="" /></a><br />
<a href="http://i79.photobucket.com/albums/j133/realstar1/Pictures227.jpg" target="_blank"><img src="http://i79.photobucket.com/albums/j133/realstar1/th_Pictures227.jpg" border="0" alt="" /></a><br />
<a href="http://i79.photobucket.com/albums/j133/realstar1/Pictures224.jpg" target="_blank"><img src="http://i79.photobucket.com/albums/j133/realstar1/th_Pictures224.jpg" border="0" alt="" /></a><br />
<a href="http://i79.photobucket.com/albums/j133/realstar1/Pictures184.jpg" target="_blank"><img src="http://i79.photobucket.com/albums/j133/realstar1/th_Pictures184.jpg" border="0" alt="" /></a><br />
<a href="http://i79.photobucket.com/albums/j133/realstar1/Pictures172.jpg" target="_blank"></a><br />
<a href="http://i79.photobucket.com/albums/j133/realstar1/Pictures203.jpg" target="_blank"><img src="http://i79.photobucket.com/albums/j133/realstar1/th_Pictures203.jpg" border="0" alt="" /></a><br />
<a href="http://i79.photobucket.com/albums/j133/realstar1/Pictures191.jpg" target="_blank"><img src="http://i79.photobucket.com/albums/j133/realstar1/th_Pictures191.jpg" border="0" alt="" /></a><br />
<a href="http://i79.photobucket.com/albums/j133/realstar1/Pictures190.jpg" target="_blank"><img src="http://i79.photobucket.com/albums/j133/realstar1/th_Pictures190.jpg" border="0" alt="" /></a><br />
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[Mello Mello]

Re: My latest inventory: 2001 BMW 740il

Do you have a dealers liscense? I know here in Cali in order to sell more than three of your own cars you they require you to have a dealers liscense whats the deal in DC Metro?

 

[Real1]

I don't have a dealers liscense. I wouldn't be suprised if the rules are the same or similar in DC. However, I'm not getting any complaints and I'm not set-up at a retail or commercial location, so I don't think I'll run into any issues.



By the way, we took a loss on the 740il. It went on ebay for only 18,099. When it was all said and done with expenses and etc, we lost about $759. The lesson we learned was that although the price guides showed that it was worth about 20k to 22k, the marketplace (ebay) dictated that the car would go somewhere in between $17k and $19.5k. When it comes to price, you always have suggested price and actual price. The suggested price is what is SHOULD be worth or what is was worth last year, last month, yesterday, or 10 minutes ago. The actual price or True Market Value is what it is going for NOW. The actual price trumps everything else. My customer was happy with the car, I saved miles on my main ride for a couple of weeks, I don't have to worry about the regret of not buying the BMW. I tried it and it didn't work. I readjust my aim and shoot again. Next time, I buy at a better price. I'm now comfortable dealing with autos that will retail for $20k. Dealing with an auto that will sell for $30k doesn't scare me one bit.

Real1

 

[TENT]

Price and value is a funny thing.

It is all subjective becuase it is possible if you tried to sell the same car a month from now someone online might have found it irrestiable and bought it for 24k!!!!!!!!!!!!!

You live and learn and keep on moving. At the end of the year you see the total profit.

 

[blackop]

Damn cuz that is my dream car there..Missed out on that there..I like the 2001 740il black with the sports package and black on black body molding like this one here http://autos.yahoo.com/usedcars/det.../photo.html;_ylt=AqTKkiYlG9E8UVDf26IMEKb0TcUF

 

[afroyale]

Price and value is a funny thing.

It is all subjective becuase it is possible if you tried to sell the same car a month from now someone online might have found it irrestiable and bought it for 24k!!!!!!!!!!!!!

You live and learn and keep on moving. At the end of the year you see the total profit.

Couldn't have said it any better -- Price and value is indeed a funny thing!

In the RE thread, I implied the same reason as to what was causing the RE bubble. Say a house is appraised at $400K. Buyers can't or don't want to pay $400K (due to many reasons), then it's not worth $400K. The seller would have to keep lowering the price until the buyer "approves". If the seller sits on the item and refuses to sell, then he/she would incur loses on the item. Economics 101 -- The Concept of Supply & Demand cannot be cheated.

Real1, do you thang bruh. You seem to be a smart businessman.