Hi! I am fortunate to be able to buy a new car tax free and, for BMWs only, at a significant further discount. I cannot afford to keep one of these for good, but as, at the moment, the resale price on an X5 is so high, one can buy one of these taxfree, drive it for a year, and then sell it in the UK (they are all UK spec and delivered, before export) at a small profit, expenses included. I am told that the best model for this is the 3.0d Sport (the facelifted model coming out this autumn). The dealers suggest that I should buy a whole range of extras, including tinted glass, running boards, leather seats (heated), automatic gearbox, 6 CD changer, and a few others. Whilst I do not quibble with the auto box, and perhaps the leather seats (unheated?), I am a bit dubious about the others. My guess is that they will push up the selling price (and dealers commission?) without adding much to the resale value (as I will still be overseas, I will probably be forced to sell it back to the UK dealer); in other words, they are getting me to pay for lots of extras that will make it easier for them to sell, without adding much to what they will give me for the car. Am I being overly suspicious? Also, does anyone think that the market for 1 year old X5s is likely to crash in the next year or so? I can't afford to get this wrong! Many thanks!
"Archie"
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You are right to be sceptical about extras. This is a luxury car so will have \"expected extras\" that you need to sell the car.
They are:
Auto box - yes vital.
Leather - yes vital. (go heated - people like em)
The others are nice to have but you will not recoup the value.
Normally these extras will help sell your car against similar others. However if its a sought after model, you wont have any problem shifting it without all the other expensive tat. Leave it on the options list.
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Obviously there are no hard and fast rules but...
I would be very sceptical of an X5 without leather and although I'd quite like a manual an auto is a must unless you have strong feelings about doing the changing yourself.
Running boards can be added later, as can the 6CD changer, probably for about half of what BMW are changing. If it already has single CD, it will make zero difference to the car's saleability.
Given the numbers of X5s selling, and the kind of people they sell them to, my feeling is that a BMW dealer, offered a 'poverty' spec one would want only to shift it through the trade, if at all. Yes, someone would buy it but people are paying the high prices because they absolutely won't wait - and they absolutely won't put up with cloth seats or changing gear themselves either.
Anything that you don't actively want and can easily be adde dafterwards, definitely leave. Auto and leather are essential, not so sure that they need to be heated though (haven't checked the price difference).
Window tinting, an upgraded stereo and running boards will definitely add gangsta appeal but can be added by plenty of aftermarket people for much less bling.
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Bear in mind that there is a waiting list for this model of 15-18 months at the moment. I saw an 03 3k X5 3.0d Sport import go though Blackbushe a few weeks ago. Black, running boards, auto, leather, satnav. Made £41k something which given a £35,500 basic list is probably close to list. Auctioneer was instructed to submit best bids. Auto & Leather are definitely essential, satnav becoming more so.
PB.
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Thanks for the comments!
As far as the waiting list goes, if I order soon BMW can deliver in mid/late Jan 04, though I guess it would then be worth delaying collection till the new registration comes in. At the moment, WhatCar? is listing the 3.0d Sport (year 02/ reg 51, ie 1 year old) as Original Cost:£36100, Trade value now £34745. As I can get the car without tax, and with a further 15% off, this is still a small profit (I have to keep it registered outside the UK for 1 year before I can sell it without incurring a penalty). And it is the only way I will ever afford to own a car like this for a year or so! The BMW dealers tell me that they see no reason why the trade figures should be much different in years time, especially as I would get the facelifted model. But then, they would say that, wouldn't they!
The extra price for seat heating is ?232 (about £160 - 170). I am told that people find leather seats a bit cold on the bottom in the winter! Though I prefer a manual gearbox for my cars, every review I have read for the X5 says "get the auto". But I think that I will give the other extras a miss. For one thing, I really don't think I could bear to drive around looking like a drug dealer with blackened windows! Of course, my final concern is, as I will have to pay for the car on collection in Euros (I get paid in Sterling), do I shift the money into a Euro account (with their much lower interest rates) now before the pound weakens further?!!
"archie"
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£160-£170 for heated seats! The heating pad only costs £8 or so to manufacture! That is one big fat profit.
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In India, I can get leather seats done for 350 quid inc door trims. How's that for a profit. This person did the leather interior for the Aston AMV8 concept car
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Just a thought on the current high residuals on the X5, might the X3 not steal away some potential X5 buyers? I reckon that's the thing to get, cheaper to buy but with similar premium to what X5 attracts now.
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One extra well worth considering is the electric folding wing-mirrors, unless you're very sure of your parking arrangements. This car is W I D E; without the mirrors folded I couldn't get through a standard single garage door, and I would be uneasy about street parking. The cost of the option could be recovered from the first ding you don't have...
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IMHO - I'd say definitely auto. and definitely leather - be careful about your colour choices. Not sure about the heated seats myself, personally I find them a bit freaky, but then again I don't find the leather too cold.
Do BMW still supply without a cd player at all? because if so, you might want to get one whilst you are driving it, and a next purchaser would expect one.
As for tinted glass - read the thread on here somewhere, it seems that it's getting controversial.
If you'd like to let me see the complete options list, I could comment on it all, and tell you the spec. I'd go for (as a potential X5 buyer myself) :-D
(that's a joke against myself btw in the light of my recent extensive research)
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Thanks for these comments. No, hootie, it does not come with a CD player - thats ?129, with the option of a 6 CD changer for ?344 extra. There are so many other options, that I can't really list them all here, but the main ones (not including leather and auto which, as I have said, I will definitely get) are:
Tinted glass ?344, Anti dazzle mirrors ?439, aluminium running board ?258, climate comfort windscreen ?198, xenon lights ?603. There are many others (such as double glazing!), but these seem to be the main ones. However, as I stated at the beginning, I won't add them unless they enhance the resale price!
By the way, why are you not keen on the X5 (if I understood your final joke correctly!)?
"Archie"
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Don't panic Archie - I AM keen on the X5, and would like one myself (have seriously considered it when my girls stop costing me so much money) The joke was that I had two threads running here over the last week asking for opinions on choosing a new car for daughter No 1 .. someone commented it must be the best researched new car in history. It is now on order btw)
My specialist skills are choosing things and shopping (although not technical)so I wasn't being sarcastic, just having a laugh - get it?
We've had a couple of BMW's and I know how pricey their extras can be.
For what it's worth, if I was buying one with my own money then I'd go for auto with unheated leather seats and a cd player - I might stretch to the 6 cd changer if I could, and because I'm petite possibly the running boards as a practicality.
I wouldn't bother above that.
As a potential target customer, hope this might be of some help to you - only wish I could get one, but university fees and costs of two girls loom large for a good while yet :(
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Thanks for all the advice everyone. I have just put down a deposit for the car, including auto, leather (not heated), xenon headlights (automatically switchable for UK/continental driving), CD player, and mirror upgrade (folding/dipping). All frightningly expensive, even after a hefty discount; lets hope it works out OK! Delivery could have been late Jan, but I have delayed until March for the next registration number (also gives me more time to collect the money!). Once again, many thanks!
"Archie"
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