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What Value is Your Trade-In Worth?

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Story by Robert Fan

Several factors indicate 2012 is the year to make a move.

Got the itch to upgrade to the new, more stylish model? Need a roomier cabin now that kids are on the way?

There has never been a better time to trade in your car. A number of contributing factors make 2012 the year to consider making this move.

There are significant market forces at play which have tightened the supply of pre-owned cars.

Here are some key points to consider:

  • Advances in engineering and build quality mean cars are made better now. According to the National Automobile Dealers Association (NADA), the average age of a car in North America is a record eleven years. In fact, one in five cars are fifteen years or older! This has lengthened the trade cycle of vehicles landing on dealership lots.
  • The credit crisis and subsequent economic recession with bank bailout and housing market corrections led to a severe decline in new car sales in 2008-2009, way down from 2007 levels. Used cars in the two to three year-old model range are now in short supply.
  • With the credit crunch, major automobile manufacturers like GM and Chrysler got out of the leasing game entirely, while other players such as Volkswagen and Ford greatly reduced their appetite for leases.
  • Stung by tough economic times, consumers held onto their cars longer.
  • The traditional Big Three (GM, Ford, Chrysler) reduced their volume of fleet sales to rental car companies in an attempt to prop up their falling resale values, which resulted in fewer used cars entering the market.
  • Fuel prices are forecast to rise due to political instability in oil-producing areas, which has increased the demand for compactfuel-efficient cars. However, in North America, SUVS and trucks are still in strong demand due to tight supply.

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So what does all this mean on a local level? In 2008-2009, more of our clients financed their cars or opted for a 48-month lease instead of a 36-month lease; hence, BMW Canada has forecastto have more than 50% lease maturities in 2012 compared to 2011. This year our dealership is on the hunt for good quality, pre-owned cars. There is a limited window of opportunity, as the number of lease maturities escalates in 2013.

There are several reasons to make a move now:

  • BMW Canada has rolled out the redesigned benchmark 3 Series with substantial improvements in fit and finish for 2012. In 2011, we introduced the compelling X1 and the new iterations of the X3 and 5 Series sedan.
  • We have strong support from BMW Canada with excellent new car financing rates, incentives, and special Certified Pre-owned programs.
  • Our dealership group is burgeoning, and now includes Brian Jessel Autohaus. With three lots to fill, we will pay top dollar not only for BMWs, but for other brands, SUVs, compact cars and highend exotics.
  • If your car is in our service department, we will be happy to appraise your car while it is in our care. Simply request an appraisal from your service advisor and they will contact our pre-owned department for assistance.
  • We will make the appraisal process straightforward and painless. Enjoy a coffee or a something to eat at our M Cafe while an appraiser performs a fifteen minute inspection ofyourvehicle’s condition

The used car market promises to be a buoyant one during the fall-winter of 2012; however, nothing lasts forever. Please contact your sales consultant today for an appointment to review your options, or email me for further information.

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Proper Care and Feeding of Your BMW

Behind-the-scenes in the Brian Jessel Service Department

As a Service Manager of many years, I have continuously searched for the best products I can find to help clients maintain theirvehicles. Good technicians know that using quality automotive products is the proper way to care for a vehicle to keep it running well for years to come.

One brand our technicians have grown to trust is BG Products. For over forty years, BG have consistently offered techs quality automotive products like vehicle testing equipment, premium quality engine fluids and maintenance tools. Founded in 1971, BG Products believes that maintaining a vehicle to the best of their ability will ensure

not only a long life for your car, but a loyal customer base for their products. Using leading edge technology, BG’s service equipment is widelytrusted by car manufacturers and the auto service industry. BG’s line of products allow technicians the ability to perform top-quality maintenance services on brakes, oil or cooling systems faster and more thoroughly than was previously thought possible. The company’s commitment to “quality first” has helped earn them the reputation as the premier solutions provider to the OEM and dealer environment.

At Brian Jessel BMW we are pleased to offervehicle servicing backed by BG Products to our clients, as preventative maintenance on their vehicles. In March we launched a new program to offer our clients an even more outstanding, next-level service. This program is unparalleled in the automotive market place. While the idea of a “protection plan” is not entirely unique; most other programs end after a certain time period or kilometre interval.

What separates The BG Lifetime Protection Plan from the pack, is thatthe plan stays active for as long as the customer maintains their vehicle using the BG Products, and stays within the recommended service intervals, regardless of time, mileage or vehicle age. The program is also fully transferable if the vehicle is sold, as long as the new owner continues the services. Only BG Products is committed to offering time-proven strategies and coverage.

The BG program is not an extension of your manufacturer’s warranty; it is a program that offers coverage after your vehicle is past its warranty. By following the maintenance guidelines set by BG Products, drivers continue to be able to maintain coverage for major components. If you start the services prior to 60,000 kilometres you will qualify for $4000.00 of coverage on major vehicle components.

If the services are started between 60,001 and 120,000 kilometres, your coverage will be $2000.00 on major components. At Brian Jessel BMW the following are services are available to our clients using BG Products:

“ BG is a program that offers coverage after your vehicle is past its warranty ”

Power Steering Service

This is a relatively new process that helps prevent the failure of seals and gaskets inside the power steering pump and steering rack. In the past, power steering fluid was not a concern, and typically lasted the life ofthe vehicle. Today, power steering fluid deteriorates much sooner due to significantly higher operating temperatures and pressures. Fluid deterioration can be credited with an estimated 300% increase in power steering repairs over the past fifteen years. A power steering flushing prevents most expensive power steering failures.

Hot Oil Service (Gas & Diesel)

No matter how meticulous you are about oil changes, there are areas inside every engine where oil doesn’t circulate well. The oil sits in depressions in metal castings of the engine where it slowly becomes thick and gooey from heat. Over time this forms chunks of sludge that move about inside the engine. As these chunks find their way to the oil pan, they are sucked into the oil pump pickup screen where they eventually restrict the amount of oil that can circulate for lubrication. Net result shortened engine life.

Cooling System Service

Our procedure removes sludge and contamination from inside the radiator and engine and maintains the proper coolant pH. Coolant pH is continually dropping and the lower the pH, the more acidic and corrosive the coolant becomes. Failure to flush coolant can lead to water pump failure, radiator failure, shortened hose life, failed head gaskets and many other costly failures.

Major Emission Service (Gas & Diesel)

The process removes carbon and deposits from injectors, valves, and combustion chambers. Carbon deposits are the result of additives used in modern gasoline to keep them stable and burnable. These necessary chemicals leach out and form substantial collections of carbon. Fuel oxidation is also a major contributing factor in carbon formation. This service is recommended for emissions failures, engine pinging problems, rough idle problems, hard starting, hesitation problems, and as general preventive maintenance. Failure to perform this service could lead to failed emissions, various performance concerns, lowered fuel economy, engine noises and sometimes – engine damage.

Brake Service

Brake fluid is hygroscopic, which means it attracts and absorbs water. This is a natural occurrence in all brake systems. Contrary to popular myth, there is no such thing as a sealed brake system. Because brake fluid attracts water like a magnet attracts metal, moisture can even be drawn into the fluid through the pores of rubber brake system components. Moisture in the brake system combines with available oxygen, causing oxidation of brake fluid, hydraulic parts, and ABS electronic components. Some are cheap to be repaired; some are staggeringly expensive!

A/C & Heat Ventilation Service

During the winter months, the blower box in your car’s ventilation system stays wet due to condensation and low ambient temperatures. The dark, moist environment is a perfect breeding ground for mold and fungus. The blower box dries out in the spring and summer months causing mold and fungus to be blown into the passenger cabin. This results in a foul, musty odor and often causes allergies to flare up. OurVentilation Service removes all mold and fungus. Additionallyyour A/C system becomes more efficient and gets cooler, sooner.

Diesel Injector Service

Modern diesel engines are powerful, compact, efficient and quiet. They are precise, computerized marvels. Due to tight engine tolerances, diesels are very sensitive to deposit buildup. Deposits in the combustion chamber and injectors rob power. Combine all ofthis with radical changes in diesel fuel over the past decade, and you have serious performance issues. A clean engine is an efficient engine. This service restores power and performance, while increasing engine efficiency.

For more information on the services and coverage plan, please contact our Service Department at 604.222.8806, to speak with one of our BJBMW Service Advisors.

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