Reasonable Selling Price for Tahoe

[FLtahoe]

I'm considering selling my Tahoe. I want to list is at $23,900.
Too high? Too low?
I know alot of it has to do with the local market too (Tampa, FL), but I'd be interested in your thoughts.

See below for details. Thanks!

2007 LS: 2WD, V-8, 4.8L
40,000 miles
Silver Birtch Metallic
Interior and Exterior are in really good shape (not perfect)
Cloth - 2 rows only
Upgraded door handles (body color)
LT center console
Chrome mesh grille
Body color upper mirror caps.

I don't expect for someone to pay for my upgrades, but just thought I would list them.

 

[Polo08816]

Your 2007 Tahoe is 5 years old (2007, 2008, 2009, 2010, 2011). A normal buyer could get a brand new 2011 Tahoe LS 2wd for approximately $31xxx. Usually, to get people to budge on a used car, you have to show 50% depreciation from purchase cost over the first 5 years.

Based on your asking price of $23,900, that means that over 5 years the vehicle only depreciated $7000.

$7000/5 years/12 months per year = average depreciation of $116 per month. That's substantially lower than the lease rate for the vehicle assuming no money down.


Your asking price is WAY TOO HIGH. You need to be around 50% of the original purchase price for a used vehicle that is 5 model years old.

Of course if you can find a buyer, then more power to you. It's just that these SUVs are a dime a dozen and based on your asking price you're certainly not showing me value if I were in the market for a used Tahoe. I'd rather buy new myself at $32000 and resell it 5 years later at $23900 if it were that easy...

 

[bub]

so you're saying his tahoe is worth about $15,500?
kbb on it says its about 21-22k. i think you're at a fair price to start out with.

 

[Polo08816]

so you're saying his tahoe is worth about $15,500?
kbb on it says its about 21-22k. i think you're at a fair price to start out with.

What I'm saying is that if he's saying his 07 Tahoe is worth $23,000 after 5 model years, then I would be better off buying new (and selling after 5 model years for $23900) than buying used because buying used isn't delivering value to me based on the strike price. Heck, I wouldn't even be able to lease a Tahoe for as cheap as that. $23900 for a 5 year old vehicle that has brand new current market price of $31000 is super low depreciation.

Keep in mind that GM is offering 0% APR up to 72 month deals that GM is offering on these SUVs now. It is much easier to put $0 down and drive away in a Tahoe than to put $23,900 cash up front.

KBB is always too high. You can price out an almost brand new Tahoe on KBB and it'll still be higher than USAA price brand new. USAA price is not some super secret squirrel figure. It's a number that the dealer is comfortable selling. They are not taking a loss on the car either.

If a dealer were to sell you a new car based on USAA pricing, a dealer will never give you close to KBB Trade In Pricing on a car either. They'll give you a bit below what the vehicle would get on an Auction.

Some quick numbers that I'm running through my head:

$31000*0.5 ~ $15,550

$15550/5years ~ $3000 depreciation per year of use for a $30,000 vehicle. Is that not reasonable? If it's not depreciating any faster than that, then it's really not worth it to buy used. My rental rate aka depreciation for that car would be ~$260/month which is a bit below what this car would probably lease for.

 

[UofMZ71]

i understand your arguement, but in no way is my truck ($50K new - 2007) now worth $25K, as ive seen my same truck (stock vs mine has plenty upgrades) with twice the miles (50k + vs mine just at 25K) for $33K-$36K and as low as MAYBE $28K but with 100K+ miles!

Now im not saying i could get $36k right now or even get my money back for the upgrades, but if i put my truck up for $25k, i might as well give it away...

people are always willing to save (say i sold for $35k) $15k for my truck considering the care and low mileage, plus the upgrades just being an added bonus.

To be honest ive had dealers offer trade in at greater than $25k!

 

[Polo08816]

i understand your arguement, but in no way is my truck ($50K new - 2007) now worth $25K, as ive seen my same truck (stock vs mine has plenty upgrades) with twice the miles (50k + vs mine just at 25K) for $33K-$36K and as low as MAYBE $28K but with 100K+ miles!

Now im not saying i could get $36k right now or even get my money back for the upgrades, but if i put my truck up for $25k, i might as well give it away...

people are always willing to save (say i sold for $35k) $15k for my truck considering the care and low mileage, plus the upgrades just being an added bonus.

To be honest ive had dealers offer trade in at greater than $25k!

What people fail to understand is that it does not matter at all how much they bought their truck for brand new? What matters is the current market price of an equal or superior vehicle?

I suggest you take a look at this:

http://tahoeyukonforum.com/forum/showthread.php?t=19652

The current market price for a brand new 2010 and 2011 Tahoe LTZ 4wd with Trailering Package is posted there. Even an LTZ could be bought $47xxx nowadays.

First year model year owners like yourself often get screwed when selling used.

That's because what's included in a "trade in" is ambiguous.

X = price of brand new car.

P = value of trade in

Suppose P = $25.

(X+10)-(P+10)...it looks like you're trade in is worth more than $25.

But that expression is no different than (X-P). now your trade-in is worth $25.

It's all the same. When you're dealing with a trade in, you're really just negotiating the difference that you have to make up.



One thing you need to keep in mind is that I'm talking with respect to the NJ market. This area incredibly competitive in terms of pricing. We usually have rock bottom pricing out of anywhere in the nation on new car sales. Heck, we have the largest volume Corvette dealership in this state.

 

[skippy737]

i traded in my 2005 yukon slt with nav and sunroof and dvd with 105K miles and two lights- check stabilitrack and some other one and got $15.8-- it was in avg condition outside and pretty immaculate on the inside.
i bought a new 2010 black yukon denali with sun and dest package and SBZA for 51250 and did it thru usaa over the phone and in and out in less than 30 minutes And had them put on brand new mudflaps on all tires. libertyville gmc north of chicago

it just all depends on how much things are worth to certain people/dealers
try craigslist but they always lowball--- hell try ebay you only pay if it sells-- its worth a try.

 

[mentalattica]

If it helps any, we bought a 07 Yukon SLT 2wd last week with 35,900 for $24k, and we were looking at a 07 Tahoe LS 2wd with 41,000 for $22,800. Both at dealers though. So I would have been interested had you been in my market selling.

But our markets may be a little different.

 

[Poncherello]

I think your asking price is right on the money, to start with anyway. In June I traded my 05 Tahoe LT with Nav, DVD, and sunroof with 64,000 miles for $17,100. The dealer cleaned it, replaced a few things, and put it on the lot for $22,995 and sold it in less than a week. You can always lower the price if you get no bites. Good luck.

 

[FLtahoe]

Thanks for the responses everyone.

Polo - You make a great argument and, on paper, it totally makes sense how you got to your $15,500 number. Having a finance backgroud myself, I can appreciate your method. However, your method lacks real world application. If I listed it at $15,500, I would have to change my phone number I would get so many phone calls. That strong of a demand tells me I need to raise my price.

Theory aside, I've had offers of $21,000 and $21,500, so I think I need to be somewhere between $22-23,000 which is where I think I will list it at.

Bottom line is that it's only worth what someone will pay for it...and there's only one way to find that out =)

 

[UofMZ71]

What people fail to understand is that it does not matter at all how much they bought their truck for brand new? What matters is the current market price of an equal or superior vehicle?

I suggest you take a look at this:

http://tahoeyukonforum.com/forum/showthread.php?t=19652

The current market price for a brand new 2010 and 2011 Tahoe LTZ 4wd with Trailering Package is posted there. Even an LTZ could be bought $47xxx nowadays.

First year model year owners like yourself often get screwed when selling used.

That's because what's included in a "trade in" is ambiguous.

X = price of brand new car.

P = value of trade in

Suppose P = $25.

(X+10)-(P+10)...it looks like you're trade in is worth more than $25.

But that expression is no different than (X-P). now your trade-in is worth $25.

It's all the same. When you're dealing with a trade in, you're really just negotiating the difference that you have to make up.



One thing you need to keep in mind is that I'm talking with respect to the NJ market. This area incredibly competitive in terms of pricing. We usually have rock bottom pricing out of anywhere in the nation on new car sales. Heck, we have the largest volume Corvette dealership in this state.

anyone can make up their own logical formulas, but say i just traded in my truck plain and simple, not buying another car. in your argument your suggesting that i would get less than $25K because i wouldnt be making up the difference in numbers. Sure there are many sites that give ideas on what cars are worth (edmunds, NADA, KBB, and USAA) and all are going to have different selection on options.

And since im down south the demand is much higher for an SUV then up north.

Ive done the math and research before and after my purchase, and since i too am a finance major, i created many a formula to figure out the right down payment, trade in, and monthly payment for me to get full advantage of my trade in when the time came. Now im not saying im trying to make money, cause thats just stupid , but im not going to lose a crazy amount either!

 

[Polo08816]

Thanks for the responses everyone.

Polo - You make a great argument and, on paper, it totally makes sense how you got to your $15,500 number. Having a finance backgroud myself, I can appreciate your method. However, your method lacks real world application. If I listed it at $15,500, I would have to change my phone number I would get so many phone calls. That strong of a demand tells me I need to raise my price.

Theory aside, I've had offers of $21,000 and $21,500, so I think I need to be somewhere between $22-23,000 which is where I think I will list it at.

Bottom line is that it's only worth what someone will pay for it...and there's only one way to find that out =)

I am certainly a bit low with my estimate of the value of the vehicle. I just feel that in my local market $23900 may be too high. But hey, if you find someone willing to pay that, then more power to you. I know that based on my USAA purchase price and the financing incentives that GM is offering on 2010 Tahoes, I would rather buy new than used based on that price.

I know my theory has flaws. It doesn't apply everyone. It probably only applies to those with the capability of purchasing this vehicle new. Of course there's always those who cannot afford this car brand new so that wouldn't matter for them.

But regardless, good luck with your sale.

 

[Cartwright]

In reality its worth about 18-19 So list it for 23K and expect to get lowballed and take the lower price or sit on it till you find someone who is willing to pay to much.

 

[Polo08816]

In reality its worth about 18-19 So list it for 23K and expect to get lowballed and take the lower price or sit on it till you find someone who is willing to pay to much.

Time is never a virtue of selling used.

 

[Tahoewhat]

Time is never a virtue of selling used.

just wondering are you a used car salesman or something? 8 posts and they are all about this thread of the op asking a resonable selling price.

Just wondering.

i agree w/ the time statement. Sort of anyway. depends on vehicle

 

[Polo08816]

just wondering are you a used car salesman or something? 8 posts and they are all about this thread of the op asking a resonable selling price.

Just wondering.

i agree w/ the time statement. Sort of anyway. depends on vehicle

I would never want to be a car salesman. I just happen to take a lot of interest the pricing of used vehicles. Usually I prefer to buy new because I tend to keep my cars forever, but one of my cars (my dd) is a dying 1994 Camry and I'm just reading up on vehicles that I might consider for its replacement.

I'm very very flexible with replacements however, I'm keen on getting a good value.
I'm open to nearly anything as long as the pricing is to die for.

BMW 02-06 E46 M3
BMW 07+ 335i Coupe or Sedan
Infiniti 07+ G35/37 Sedan or Coupe
Jeep 08+ Grand Cherokee SRT8
Chevy 09+ Tahoe LT or LTZ
Cadillac 08+ Cadillac Escalade
Chevy Corvette 06+ 6MT Coupe
BMW 08+ 550i 6MT
Toyota 06+ 4Runner V8 Sport Edition or Limited
Ford Mustang 2011 5.0+ GT Premium (3.73, HID, Security, Brembo)

Basically, I'll take any one of these once my Camry dies (if it ever does. 225k with a blown head and valve gasket, consuming 1 qt of oil every 800 miles lol). Just waiting for a seller to get desperate. Otherwise, I'll just consider buying either the Mustang or the G37x Sedan brand new via USAA.