In Reply to: Re: Buying from a relative...help! posted by PorscheDriver on April 23, 2001 at 22:37:00:
The bottom line is that the market price is the better indicator. If you were buying an E30 M3 from someone other than your relative you'd be basing your price points on market values, right? I agree with everyone in this thread that has said that the relative rarity of these cars increases the price. With special cars people will pay to get one in good shape. (Have you ever seen the classic car auctions or DuPont Registy?) If there is a pristine, really low mileage, stock example it might just be worth $20,000 and someone would not be crazy to buy it. There will be a day when there are very few low mileage cars left. It all depends on the car and the buyer.
In your situation you should be honest with your relative and tell him or her what the "book" value is and what the market value is. (If he's in to E30 M3's he should know what the general market value is.) Somewhere in between there should be a mutually agreeable price where you feel like you get a good deal and he doesn't feel like you took advantage of him.
Good luck and enjoy the car if you get it.
Are the ads a better indicator, or do people generally jack up the asking price of these cars and sell closer to blue book range? Help!
The asking prices are a very poor indicator of actual value. A lot of owners are asking ridiculous prices. Nobody on this board is going to pay 20K for an E30 M3 except for the fools.
The market guides are an excellent resource because they provide an independent and unbiased source of information about actual selling prices. You will not find unbiased information on this board about actual selling prices because most everyone on this board is an owner with a vested interest in keeping the values artificially inflated.
The CPI value guide, for example, lists an '89 BMW M3 in excellent condition with a value of $12,200. http://www.cpivalueguide.com/
"How do you determine the values listed in the Guide?"
The editors of CPI Value Guide collect and analyze tens of thousands of pieces of data from auctions, dealer sales reports, and public sales. The editors also confer with various car clubs to get a better feel for what’s happening in the market. Each vehicle is reviewed individually, and the value listed is determined by reviewing the available information."
I would offer $12k for the car, and show your relative the value guide.