Quote:
Originally Posted by P1et
How on earth can a dealer afford to have a vehicle for sale for two years?
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Not a BMW dealer, a normal second hand car dealer as this was a used car.
Not entirely sure about this particular vehicle, but its quite common over here for these dealers to import cars from Germany.
Then just pay VAT, and don't pay the import tax before someone buys it.
The car in question was possibly bought in Germany for about 50.000 Euro two years ago.
They advertised the car around 150.000 euro 2 years ago. (exchange rate as of two years ago).
At the moment its on sale for 110.000 euro. (current exchange rate).
They are still just 50.000 out of the pocket so to say.
The import tax (which has not yet been paid) has been reduced 20% as the car has become 2 years older (10% drop every year). So that has to account for most of the price reduction.
Not saying they will get their 50.000 euros back, but doubt they will lose more than 5000 euros if the car sells at the current price.
Now if this was a car that the taxes was paid on, they are hurting pretty bad.
Though I guess they took a pretty good margin on the trade in so in that case the previous owner took a big hit.
I had a trade in offer on a -03 325ci I had in 2007, and the offer I got was almost 10.000 euros lower than what I sold the car for 3 months later.