When buying a new or used BMW from a dealer many people simply take their present car along and get a part exchange price. Although this is the easiest way to change cars it can cost you quite a bit of money and heres why.

When you buy a car from a dealer you should negoiate the price. Most cars are priced so the dealer can reduce them. If you have no part exchange then simply haggle with the dealer until you are happy with the price. The amount the dealer will reduce the price by depends on a number of factors such as how much profit there is in that particular vehicle, demand and even the time of the month. Some dealers may have targets to meet and so may give generous discounts towards the end of the month.

Now if you part exhange your BMW things are a little different. Generally the dealer will only offer you the "book" or trade price for a car. He may then add a little on to give a you a price to change. What is happening here is that in reality the dealer is giving you trade price for your BMW and then reducing the cost of the new vehicle and adding onto your part exchange price to make it look like they are offereing more. The thing to remember however is that the dealer would have reduced the cost of the new car regardless so in effect you are selling your existing BMW for around trade price. After all the dealer has to make a profit and still has to sell your car.

If you decide not to part exchange your BMW then you still have to sell it. Selling a car privately has its drawbacks. Its costs money to advertise and you have to be prepared for canvases and timewasters. There can also be insurance problems allowing prospective buyers to test drive the car etc.

Anther option is to use one of the many car buying companies that have started appearing. You can simply contact them with your car details and if a price is agreed they will come and collect your car or you take your car to their nearest outlet. Whilst many of these will give a decent price for your vehicle care needs to be taken as some will only offer a trade price and then make you pay an admin fee. You may also find that if you have misdescribed your BMW in anyway then the offer price will be reduced.