You really shouldnt be going in negotiating different parts of the deal between each other. Each is a separate transaction unto itself. First, negotiate the price of the M3 all by itself. Do not factor in any trade in value, discounts, rebates, etc etc. Pretend you are buying the car with cash, and get the best value for the car by itself you can. Then repeat the same process for your trade in. Add the two together, and you have a final deal.
Also get your car appraised with carmax. They often offer better deals because they are a nationwide chain and can ship your car to any city for sale. If they can beat the dealer, then try to get the dealer to match the trade. If they wont match it, then get the dealer to add the difference to your loan so you can still sell the car with carmax, and pay off the difference with them. This way you get carmax's selling price rolled into the purchase price of your new car.
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