Need advice on my potential Yukon purchase situation

[CalmGlass]

Hello all, newbie to the site here!

I visited 3 dealerships today and came back pretty discouraged. Found this forum, and it's even more discouraging. Here's my situation, I currently own a 2018 Yukon XL Denali, and looking to get into a 2022/2023 Yukon XL Denali. Fortunately, all 3 dealerships say they price at or below MSRP, so that's great. But it's looking like the only people who can get a *new* one, based on what the dealers are telling me, are people who've ordered from factory and then taking delivery. There are simply no new ones on dealer lots. Configuring one online, you just never know when you'd ever get it delivered.

That said, my issue here is that I need to trade in my current Yukon to pay towards the $85-$90K price tag. I only owe a few thousand $ on the current one, so I have pretty good equity. If ordering from factory takes 3 - 6months or longer, used car values could keep coming down and I'm losing equity. If it takes a year to take delivery, I fear my 2018 yukon may lose up to $5K in market value by then.

Anyone else who's dealt with this situation? It's looking like used car values have never been this high, and the market is due for correction soon. I'd just like to have traded in my Yukon before that happens. Any thoughts/advice appreciated.

 

[PaulGA]

I know earlier in the year when I was shopping, a few dealerships offered a locked in trade price when you ordered a truck. So say that ‘18 is worth $50k today when you signed the deal and $47k in December when the new one came in, you’d have a signed deal stipulating a trade price of $50k.

Totally worth a shot to ask around.

 

[Banks22]

What state are u in? Get on gmc.com and search inventory for Denali’s, and check twice daily and you’ll have to call on each one. Might take u a few weeks and a lot of phone calls but u will eventually find one. Out of state from u are less likely to be below msrp. And also there’s more ultimates being built than base denali’s not sure why. So check those too if within your price range...I’ve had success doing this, just have to be very persistent

 

[todayusay]

What did each of the three dealerships say about lead time? Did any of them say they have an allocation available for a Denali? Searching for one already built would be the first path I'd go down for sure...you may have to change the 2022 to 2023 in the url as it doesn't look like GMC has set up a dedicated page for searching for 2023 inventory (try the link below for 2023s)

Site Maintenance

It'll say 2022 on the page but the yukons will be 2023s

if you don't find anything matching your "wants" - then a custom order is really the only other option unless you're willing to pay $10k over MSRP for a used one. Simply put, the only way to speed up the order/build process is to actually have your order accepted by GM...if you've read a little on the process then you know you can walk into any dealer and place an order within 15 mins, but that dealer has to have an allocation for your build in order for it to actually be accepted by GM (two step process - which can be the biggest hurdle)

as far as trade in values, some dealers are willing to lock in a trade in value with a mileage restriction, but most will only do 30-60 days max and even those tend to be on the low side price wise...they are going to protect themselves. Guess you don't live in a state that allows private sales to offset the sales tax? If you're not sure, check into it as there are states that allow this...(just gives you another option)

 

[Punteh]

I'm in a similar position as you. I've placed an order for a 23 Yukon XL Denali and I'll be trading my 14 Silverado in. My biggest concern is what's going to happen to the trade value for my Silverado in the unknown time it takes for the Yukon to come in. The gap between the two vehicles is only going to get wider as time passes

 

[WalleyeMikeIII]

I'm in a similar position as you. I've placed an order for a 23 Yukon XL Denali and I'll be trading my 14 Silverado in. My biggest concern is what's going to happen to the trade value for my Silverado in the unknown time it takes for the Yukon to come in. The gap between the two vehicles is only going to get wider as time passes

Yes, and Prices will increase as well (at least MSRP). The 22's from this time last year were 2-5k less on the sticker than equivalent is now. Now, if the NEW market tanks...then its anybody's guess as to what will happen...

Net...Follow advice above, you might find one for sale on a lot...but you may have to compromise on your want's list. If you have a specific config you are looking for ordering will be the only way.
Now, my experience is the more loaded up you order it, the more apt it is to be built. My '22 Denali had every option except RSE from the "Ultimate Package" (not the same as the '23 Ultimate). It was ordered on 11/14/21, and arrived at my dealer on 2/9/22.
Net, if you were GM, and had a finite part's stream, and a finite production capability..and you were selling everything you could make, wouldn't you option them up to the hilt too, and maximize your profit/revenue?

 

[OR VietVet]

Welcome to the forum.

One thing to keep in mind is this, with Ca. and several other states going to the "buy new electric car percentages and only new by 2035", these used vehicles may hold value longer than some people think. The mandates kick in in 2025 with a certain percentage and then a higher percentage as years roll by and then must be 100% by 2035.

 

[ColeBlooded]

I was also scared that my previous car value would plummet so i sold it myself a few months before I got my Escalade. Luckily my mother is retired so i was able to borrow her car until I got my Escalade.

But in my opinion, i don't see used or new car values going down this year. These inflated prices might be here to stay for awhile.

 

[Blueinterceptor]

I traded in a 2017 Tahoe. Got $45k on a truck with 24k on the clock. Perfect condition ltZ. They marked it up to 47k. It’s still on the lot. Used car prices are coming down. Cost of fuel coupled with rising interest rates and increased new car inventory is going to suppress the values of used cars.

 

[Seamus]

I know earlier in the year when I was shopping, a few dealerships offered a locked in trade price when you ordered a truck. So say that ‘18 is worth $50k today when you signed the deal and $47k in December when the new one came in, you’d have a signed deal stipulating a trade price of $50k.

Totally worth a shot to ask around.

Used car prices are dropping rapidly. Repo guys cant keep up with the banks requests. Market is changing rapidly. Can't see anyway a dealer could lock in a trade value unless it was 5k low to begin with.
I am is the same boat as the OP and the best you can do is order the truck, cross your fingers and when it gets here its a yes or a no based on values. Thgis will take over a year to adjust, not looking good.

 

[todayusay]

just sold a 22 Tahoe, most dealers didn't even really want to look at it - and several that did wanted to stay at sticker ($66k) or below - average trade in was $5k over original MSRP. cheapest similar Tahoe (basic Z71) I could find online was $8k over
here's the offers I received

Carvana offered $56k
Vroom $59k
Local Autonation group - $61k this dealer said they changed their approach to how they were pricing their offers buying from the public back in early August - sales guy said they hadn't bought hardly anything from individuals since
all of the above offers weren't even at the low end of book value
givemethevin offered $64k
had another dealer just ask what we wanted since the sticker was $66k
another dealer's online took came back with $69k, but they pulled back on their offer and said the best they could do was $65-66k since that is what the sticker was (heard that several times...I just quit responding when they brought that up - they aren't in the business to lose money)
two other dealers offered $68k - sold it to one of them
KBB instant cash offer wouldn't even price it
Carmax wouldn't value it without seeing it

Sounds like a lot of legwork - but honestly I obtained all those offers in probably 15mins online (dealers usually responded in a few hours from the initial email/filling out their online form

value on a 2018 is going to go down, but not as much as the 21/22s that have been overpriced

 

[Punteh]

Yes, and Prices will increase as well (at least MSRP). The 22's from this time last year were 2-5k less on the sticker than equivalent is now. Now, if the NEW market tanks...then its anybody's guess as to what will happen...

Net...Follow advice above, you might find one for sale on a lot...but you may have to compromise on your want's list. If you have a specific config you are looking for ordering will be the only way.
Now, my experience is the more loaded up you order it, the more apt it is to be built. My '22 Denali had every option except RSE from the "Ultimate Package" (not the same as the '23 Ultimate). It was ordered on 11/14/21, and arrived at my dealer on 2/9/22.
Net, if you were GM, and had a finite part's stream, and a finite production capability..and you were selling everything you could make, wouldn't you option them up to the hilt too, and maximize your profit/revenue?

I'm hoping I end up with a similar situation as you. My order is pretty similar to yours, everything except RSE. I know that the advanced tech package is a problem right now because of it coming with super cruise, which I actually don't want but can't get the rest of the items without it. I don't want to settle on a vehicle with less options because it seems crazy to me to spend over $90k on a GMC that's missing a bunch of features.

 

[CalmGlass]

Thanks for the replies everyone. Much appreciated. As I mentioned, my apprehension about waiting had to do with not wanting my used Yukon's value to keep dropping while waiting for the new Yukon Denali. I took the advice here and shopped far and wide. Yes, I know it's only been a few days, but absolutely nobody had a new one for sale. They're all spoken for. I called all the GMC dealerships I could find locally, a bunch statewide, and a bunch that are a couple of states away. They were all saying the same thing: place the order online and be prepared to wait anywhere from 3,6,9 months, depending on a number of factors.

I pivoted and started looking for used Yukon XL Denali's and all the closest ones to what I would have configured online were $5K - $15K over what I'd pay for them brand new---as I said, the initial local dealerships say they don't charge above MSRP for new. I simply don't want to pay that much for a used car when brand new goes for much less. I'm going to keep searching for a used one at a price that won't make me regret not waiting. If all else fails, I may have to look beyond my desired Yukon and go for something that's close enough. Then maybe trade it a couple of years down the road when the market (hopefully) gets back to normal and there are hundreds of brand new vehicles on dealer lots all over the place. The good old days!

Thanks again for the advice

 

[Stbentoak]

I think the above still reflects reality in this market. We have 3 Chev, GMC and Cadillac dealers locally and not a one of them have any full size SUVs on their lot and haven't all summer. They may have softened their stance on 5-10K over sticker slightly, But these vehicles just aren't out there yet. Same with Bronco's, Bronco Sports, and Expeditions. Maybe a few Expeditions here and there but they are usually gone in a week also. They have also sneakily been Rasing prices at every turn + mandatory OnStar, not to mention shipping w/o options that have no real dates of being fulfilled. Still a tough market out there if you actively NEED one now....

 

[OR VietVet]

Every time I see these threads about lack of inventory for new rigs and see what new buyers are going thru, I don't regret a bit putting more money in my 05.

Good luck to all the new buyers.

 

[jforb]

Now, my experience is the more loaded up you order it, the more apt it is to be built. My '22 Denali had every option except RSE from the "Ultimate Package" (not the same as the '23 Ultimate). It was ordered on 11/14/21, and arrived at my dealer on 2/9/22.
Net, if you were GM, and had a finite part's stream, and a finite production capability..and you were selling everything you could make, wouldn't you option them up to the hilt too, and maximize your profit/revenue?

Interesting take on it...but opposite of what happened to me....I ordered a base Tahoe (with only on option) in early May, it was built and delivered by the end of June.

The salesman did say before I ordered it that they had just been told that Chevy was not taking any dealership stock orders any longer, only customer orders. I think the situation is different than it was earlier in the year.

 

[tjs3922]

I am in the same position. Have a loaded 21 RST Suburban now and expecting my 23 Suburban HC in late 2022.

I look at the value of my 21 a little differently. I am using it normally and not worrying about trade in value. I am getting my value by using it and driving it now. So I figure it all washes out in the end. My dealer has hinted I will get what I paid for it in dec 2020. ($70K)

 

[ProfeZZor X]

I don't mean to be "that guy" but I'm afraid it appears that you underestimated the expectations of dealers having stock on hand. Or you haven't been preemptively doing the research to see how the market is before you decided to commit to trading in your vehicle. It took me over a year of doing the "walk-in" dealer thing, lots of cold calls, and tons of salesman follow ups before I learned the hard way of what you're experiencing right now. I could have placed an order a year ago, but like yourself, I was naive and wanted the instant gratification of buying it from a dealership that day and driving it off... Well, that didn't happen. Far from it.

My next strategy was to look on the official GM Inventory website within 500 miles. When that didn't work after two months, I expanded my search to include every state in the entire US. At that point, I began to see lots of them in different states. Unfortunately, 95% of them were customer orders. After a year of searching, I then got desperate and placed an order back in February this year. Then after checking the forums and the helpful people there, I realized my dealer order hadn't been touched in two months. This was due to supply chain constraints of parts and the chips. I continued to keep my order, but I also kept my search active. A month later I found a "dealer stock" 2022 Yukon AT4 that had just arrived on the lot within 2 days. It wasn't a customer order, but they did ask for an addition $3k markup. In fact, it was a new 2022 color, so I hadn't even seen what the color looked like. But, seeing that I desperately needed a vehicle, and given the current market volatility, I sent them a cashier's check literally overnight... It was an out of state transaction, but the dealership and I made it all happen with FedEX and a local Notary Public.

As for your trade in, you might consider selling it at your local CarMax or private party. Worse case scenario would be for you to do an out of state transaction first, and if they agreed to accept your trade, ship it (or drive it) to them, and drive home the new Yukon home.

 

[Eighthtry]

I started in February with a 2022 order. GMC killed that one and kicked me over to 2023. Worse things have happened. GMC accepted my order about a month ago. So I am on the list. In the meantime my wife and I are roadtripping her 2011 Denali XL. We turned over 200,000 miles last week. I have no idea how to even value a 200,000 mile car. I do know that the dealer will hustle if off the lot to a wholesaler if I am dumb enough to trade it in.

Does anyone have any thoughts on how to value a 200,000 mile car that, if we would clean the bugs off from the last trip, looks like new. The wife keeps her cars up.

 

[OR VietVet]

I started in February with a 2022 order. GMC killed that one and kicked me over to 2023. Worse things have happened. GMC accepted my order about a month ago. So I am on the list. In the meantime my wife and I are roadtripping her 2011 Denali XL. We turned over 200,000 miles last week. I have no idea how to even value a 200,000 mile car. I do know that the dealer will hustle if off the lot to a wholesaler if I am dumb enough to trade it in.

Does anyone have any thoughts on how to value a 200,000 mile car that, if we would clean the bugs off from the last trip, looks like new. The wife keeps her cars up.

Depends on the used car market. Forecasters and prognosticators are predicting the start of the used car market coming back in line with actual values of the used vehicles. There is starting to be a glut of used vehicles because there is a very high average of repossessed vehicles that is taking place each and every day across the USA.