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Discussion Starter #1
Hello, I am interested in a 2013 limited outback with the special appearance package. The msrp is $34,751. However, I recently purchased a BMW 535 just a couple of months ago that I am now finding out is a bit too small. I am wondering if it is reasonable to try to make a straight trade. It is a 2009 535 and loaded with premium package, leather, nav, heated seats, etc. it was purchased as a cpo and paid an extra $2,500 for free maintenance until 100,000 miles. Factoring in rebates on true outback, will a dealer do this? I am a recent college grad, which I think I could receive $1,000 back, right? Thanks!
 

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I just plugged your cars value in with 30k miles, assumed it was an auto, and assumed it wasn't all wheel drive and according to kbb your value comes out to $29,072 in excellent condition. I think you may be able to get away with putting a $1,500-2k out of pocket plus taxes depending on if you get under if invoice or not. That's going with the 2.5. Also, I don't think Subaru does college grad rebates. It says they may have special financing and has alittle thing about it on their website, but I can't find any detailed info.

Best thing you can do it shop around and see what they can do for you.
 

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Discussion Starter #3
Thanks for the response. I agree that based on the online valuation sites I could be within $1-$2k. However, do you think that the free maintenance until $100k (that I paid an additional $2,500 for) is worth anything to a dealer? I am planning on shopping a bit today, but wanted to see if there was a general consensus on the board. Thanks!
 

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Probably not. Is there anyway to cancel that and get a prorated refund? Most companies give you 60-90 days for a full refund and after that time, they will prorate it.

Be sure to post how you make out today!
 

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Have you considered throwing it up on Autotrader or Craigslist just to see if you get a bite? See what the retail book value is, and price it to move. It should be more than enough to buy the Outback, and a private buyer will see value in the maintenance package (assuming it is transferrable...might want to check). The dealer won't care about it, and if you do trade, see if you can get a refund.
 

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That $2,500 maintenance package transfers with the car to the new owner... so that definitely should be a factor in the trade.

I traded in a 335i a few years ago and learned the hard way that you cannot be reimbursed for the maintenance package - just the extended warranty (and that's pro-rated).
 

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Discussion Starter #7
I put in a question to BMW USA asking to simply cancel the extended free maintenance. I am wondering since it even hasn't started yet (it kicks in after 50,000 miles and I currently have 45,000) it should be fully refunded. Fingers are crossed. It has been 50 days now since I have purchased it, so hopefully it is not limited to within 30 days. The good thing is that all warranties are fully transferable. That I already checked on.

I also put it on Craigslist yesterday just to see if there is any interest, but I'm a little hesitant in pursuing that route due to possible scammers and it being such a tedious process. Also, it is partially financed so the transfer of title could through a wrench into the works.

As far as my Outback initial purchase process, I test drove one just now and it is what I expected and what I am looking for. However, the exact model/package was not available, but should be in within the next couple of weeks or so. They didn't proceed in the valuation process since a deal wouldn't be made today.

All in all, I am hoping to convert to a 2013 limited 2.5 with the special appearance package without any additional $$ out of pocket. If anything, I feel I should receive a small credit since I feel the value of the 535 outweighs the Outback. But I am a little bias. :)

I appreciate the great feedback from this forum thus far. Keep it coming!
 

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I bought a 2005 Hyundai Santa Fe with 12k miles back in October on craigslist and the people I dealt with couldn't have been nicer. I also tried to selling that vehicle on craigslist to purchase my 2012 Impreza. Surprisingly, the people I dealt with were actually seriously interested. Gas mileage kept them from buying it. I think if you are careful, craigslist is a good route to go. You will definitely get more selling it yourself and probably more of what you are looking for. Many people sell more expensive cars on craigslist with loans on them, just put the stipulation in there that you have to pay off the loan. People shouldn't have a problem with that.
 

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Discussion Starter #9
I just read MTNBOUND's response regarding not being able to be reimbursed for the maintenance portion. Looks like my best bet will be to sell it private party unless the dealership can work in that value. I am thinking that although they may not value it, they can advertise the car accordingly thereby increasing the premium and pass it along to the next buyer.
 

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Have you figured the difference in taxes paid by trading or paying cash?
You may be able to sell your car for more on your own but will lose a lot of that by paying more in taxes. (If this applies to you)
 

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Better make it two separate transactions.
Shop for the best price on the OB without mentioning trade. Once you have "invoice less 2%" quoted, then bring up the subject of the BMW.
It's the dealers business to work with you but I suspect you are not going to get a straight across swap.
 

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Discussion Starter #12
The buyer pays the taxes and fees in a private party deal, as I understand the codes set forth by the California DMV. The main tax is the so-called 'use tax', which is essentially a sales tax, of about 7%. However, this use tax is based on the value at which the car is sold (at least on the bill of sale).
 

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Greg,

That's not what he was referring to. I'm not sure if your state has it, but there is a "tax credit"(it's not the correct term for it) when you purchase a new car and trade your car.

Say the Outback is $30k and your car is worth $25k. You are only paying taxes on the $5k difference rather than the full amount of the new car($30k).

You need to figure out if the extra money you make in the private sale will make up for the difference you save in taxes. For some it's not worth it.
 

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Discussion Starter #14
Ok, I think I got it. I believe that in California, tax is based on the price of the new car, regardless of what the trade in is. Basically, the taxable purchase price is not netted down by the trade in value.
 

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Greg
Sorry I wasnt more clear:)
Some states would look at that as paying tax twice. Your trade should not be taxed until the next owner/user buys it.
In the senario Carl used (most states) you only pay tax on the difference of the purchase price. ($5000, which would be $350 (at 7%) in taxes.) Taxes on $30,000 would be $2100. So you would have to sell your car for $26,750 to be even at $25,000 trade. Then, only you can decide how much over that would make it worth your time selling it on your own.:)
 

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Discussion Starter #16
I wish that were the case. We apparently double tax in California. You would think we (Cali) wouldn't be in such dire straights economically with all this double taxing!
 
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