A Dealer wants to buy my 2021 Tahoe for a loaded 2022 Yukon SLT. Any advice?

OR VietVet said:

Uber and Door Dash!

Click to expand...

Medical Sales Rep.

gooffeyguy said:

30k miles in less than a year, wow

Click to expand...

Lol yeah, I drive a lot for work.

WalleyeMikeIII said:

Check the financing. Is it same payment but stretched out longer? Interest rates are surely higher now than they were when you bought your 2021.

If it is truly he is giving you trade in value on your 21 = selling price of the 22 + dealer fees so the net deal after trade is $0, and all you are doing is transferring the balance owed on the 21 to the 22, then yes, you are buying 29970 miles for zero dollars. But, unless you see the total purchase price less trade = $0, you are not winning.

Click to expand...

I would be starting out a whole new payment, so I guess that's where I'd be losing. My current vehicle is being financed for 4 years, with 3 years and 1 month left. This would put me back at a full 4 years again, so I'd be eating the 11 months I've paid on my vehicle now. But at the same time, still seems like a decent deal.

I think I'll hold out though and see if he tries to sweeten it at all. I love my Tahoe anyway and its no loss to me if this deal doesn't happen.

My Tahoe:

You are trading a unique super sharp vehicle for a "Plain Jane"....Nah, I'd keep it. I've been offered 100K for mine. Told them, sorry, but it's too hard to duplicate....

That Tahoe and the wrap looks awesome. I guess for me it would depend on the details of the new Yukon and how much that wrap cost to do it to again.

I’m guessing he has someone looking for a z71. With max tow hard to get you need a z71 in order to get the 2 speed transfer case. I would compare window stickers and see what all you would be losing because the z71 comes with standard things the SLT has to option.

Stbentoak said:

You are trading a unique super sharp vehicle for a "Plain Jane"....Nah, I'd keep it. I've been offered 100K for mine. Told them, sorry, but it's too hard to duplicate....

Click to expand...

Yeah, I was thinking the same. I could wrap the Yukon as well, but that would come with an additional expense that I really don't want to take on. I guess I was more excited about it because I've always been a Yukon guy and while I love the Tahoe, a 2022 Yukon seemed like an awesome swap.

Donnation said:

Yeah, I was thinking the same. I could wrap the Yukon as well, but that would come with an additional expense that I really don't want to take on. I guess I was more excited about it because I've always been a Yukon guy and while I love the Tahoe, a 2022 Yukon seemed like an awesome swap.

Click to expand...

It may or may not be a horrible deal. My suggestion is, get the payment out of the picture. Here is the math you need:

Purchase Price of New Yukon = P
Trade in Value of your Taho = T
Payoff on 2021 Tahoe = Z
Dealer Fees = D
Taxes = t
Title, License, Transfer Fees = L

Your Real Cost, C is defined by

C = P - (T - Z) + D + t + L

Then, since you are financing, you need to consider:
Annual Interest Rate converted to a decimal = r (ie: 4% = 0.04)
Number of months = n

Total Interest you will pay = I

For a 4 year loan, you can calculate the total interest you will pay from this formula:
I = C * [(1 + r/n)^n – 1]

Or an easier way is use an online loan calculator --> https://www.calculator.net/auto-loan-calculator.html

Add I to C to see the real cost of the deal. If you want to see the delta cost between sticking w/ your current vehicle and now, you would need to determine the remaining interest you have to pay on the current vehicle...but, what is going to get you is that on a 4 year loan, about half of the total interest expense comes in the first year..so you are basically resetting into the high interest part of the loan, and I am almost positive that you will be paying a higher interest rate originating a loan now that you were in 2021.

One wild card could be that GM was offering 0% for 36 months...if you could sneak in to this financing, you would actually save money on interest vs. what you were at.

WalleyeMikeIII said:

It may or may not be a horrible deal. My suggestion is, get the payment out of the picture. Here is the math you need:

Purchase Price of New Yukon = P
Trade in Value of your Taho = T
Payoff on 2021 Tahoe = Z
Dealer Fees = D
Taxes = t
Title, License, Transfer Fees = L

Your Real Cost, C is defined by

C = P - (T - Z) + D + t + L

Then, since you are financing, you need to consider:
Annual Interest Rate converted to a decimal = r (ie: 4% = 0.04)
Number of months = n

Total Interest you will pay = I

For a 4 year loan, you can calculate the total interest you will pay from this formula:
I = C * [(1 + r/n)^n – 1]

Or an easier way is use an online loan calculator --> https://www.calculator.net/auto-loan-calculator.html

Add I to C to see the real cost of the deal. If you want to see the delta cost between sticking w/ your current vehicle and now, you would need to determine the remaining interest you have to pay on the current vehicle...but, what is going to get you is that on a 4 year loan, about half of the total interest expense comes in the first year..so you are basically resetting into the high interest part of the loan, and I am almost positive that you will be paying a higher interest rate originating a loan now that you were in 2021.

One wild card could be that GM was offering 0% for 36 months...if you could sneak in to this financing, you would actually save money on interest vs. what you were at.

Click to expand...

Thanks so much for this great advice.

it wasn't mentioned but guessing the Yukon is 4wd?

use this link to throw up the window stickers of both if you want (just put the VIN at the end and then you can screen grab it)



Agree with the above formula and to ignore the monthly payment....

But I have some pause with your initial comment about the payment being essentially the same...maybe you're playing off the payment going down $50-100 or more with buying the Yukon...but the payment shouldn't be close to the same even using higher interest rates if the dealer is truly giving you an even swap

you've paid on a 4 year loan for almost a year (at what one would think relatively low interest) - your next payment and you've paid down the loan close to 25%

for grins...
say the 2021 Z71 stickered at $65k
you financed $50k
interest rate 2.5% for 4 years
monthly payment almost $1100

11 payments in and your payoff is ~$39k

New Yukon maybe stickers for $70k (this is and isn't really important) - he could be selling it to you for $70k and offering you $70k for your Z71 or selling the Yukon for $75k and then offering $75k for your tahoe...but all fees in and the dealer is "saying" it's an even swap

Your new starting principal amount should be the amount you currently owe on your Tahoe if it's a true even swap...

so the loan starts over...
Finance $39k
interest now at 4.5% (you can probably find lower but thought I'd bump this up)
4 year loan again
monthly payment is now $890...over $200 less than initially


just throwing that out there as I didn't know if the dealer said he could keep your payment the same or....


As far as Z71 vs the SLT, Z71s (and AT4s) will always be in higher demand over a LT or SLT and yours is unique to the point where it could demand a premium in the already inflated market prices...SLT is sharp as well and could stand out with similar mods...but stock vs stock...Z71 will be in higher demand

Without looking up your tahoes trade in value I'd think you are getting a higher trade in value than what the book says (or the dealer is "discounting" the yukon to match the actual trade in value)