What would YOU pay for this BMW?

Question

I am wanting to buy this BMW but don't really know how much this salvage title car is worth. Thanks! Here's the link:

http://www.autotrader.com/fyc/vdp.jsp?ct=p&car_id=248298048&dealer_id=62979501&car_year=2001&model=330CI&num_records=25&systime=&make3=&make2=BMW&highlightFirstMakeModel=&start_year=2001&keywordsfyc=&keywordsfyc=&keywordsrep=&keywordsrep=&engine=&certified=&body_code=0&fuel=&awsp=false&search_type=used&distance=500&marketZipError=false&model2=325CI&search_lang=en&showZipError=n&make=BMW&keywords_display=&color=&page_location=findacar%3A%3Aispsearchform&min_price=&drive=&default_sort=priceDESC&max_mileage=&style_flag=1&sort_type=priceDESC&address=95821&advanced=y&end_year=2009&doors=&transmission=&max_price=11000&cardist=81

Answer 1

I wouldnt buy it at all. The potential of me spending a lot of money to fix a salvage car is too great and i have no idea why it was salvaged...

Usually, a car that has a salvaged title was declared a total loss by the insurance company (due to a flood, major accident etc...) and somebody fixed it up. This BMW could have been in a flood or received frame damage. You should probably stay away from salvaged cars because it can break down at anytime and things can fall off. Plus, many insurance companies dont really like to insure salvaged cars, so you may or may not get coverage for it and if you do, you might be paying a lot for it.

I would advise you to keep looking because this BMW like a ticking time bomb waiting to go off.  

Answer 2

One of the keys to pricing a car is to effectively rate the car as the price will vary widely based on condition and mileage.  Mileage is pretty obvious.  You should base condition on a Carfax report (which would also help catch any odometer fraud) and your own review.   Before you buy your final step should be an inspection by a qualified mechanic - but that's too expensive to do on every car you look at.

There are a bunch of places to check car prices on the Internet. NADA guides is one - but since they are owned by the car dealers association I never recommend them. KBB is another. Driverside.com is a new site and they have a couple of extras - great data showing price based on mileage; DriverSide Estimate where they search actual listings to find what cars are actually selling for in local markets; and estimates for trade in pricing.    Given that this car is already listed as a salvage - you should base your estimate of pricing on fair/rough condition.

Also take a look a the DriverSide cost of ownership - service, gas, insurance and even depreciation to see how the price will drop over time.  I find that most folks look at the one time sales price - not the ongoing costs which continue long after you buy your car.