Purchase incentivized new 2011, or wait for redesign?

[Ben]

Take your time. I'd certainly give up driving a new tahoe for 2 months if I could save thousands. I know a guy that got a new 2010 about 9 months ago for like 37k.

 

[domin8]

The rule of thumb is to negotiate the trade-in separately from the new truck. I wouldn't even mention it until you got a price on the new truck settled. That has always been my experience otherwise they'll start factoring your trade-in and crunching numbers that will be in their favor.

QFT.

The order of negotiating should be purchase price, interest rate (to ensure you get 0%), and then trade-in value. It might help to prequalify with your bank first in case the dealership tries to screw you. This can be done online. Look up the trade in value for your car so that you can go in with a realistic number in mind. Dealerships don't use KBB. They use NADA, which publishes different books for each region. It might help to run a Carfax on your vehicle too so that you know what it says. The dealership certainly will when they appraise your car.

Also, them to show you what they paid for the truck. They may try to get out of that and change the subject, but stick to your guns and don't budge until you see the sheet. Once you have it, make an offer based on it. I typically go no more than $500 over their cost. The worse my experience the lower I go or the more free stuff I try to get such as oil changes and tires. Or, if you want accessories, get them included in the deal, and in writing. Buying them through the parts department could end up coating you more.

This works both ways, though. In the end it's all the same unless you're bad with numbers.

Anyway, I ended up walking. They weren't even close after making me several offers. They were barely willing to come down more than a few thousand.

I'd try going to another dealership and tell them the truck you want is at the first dealership you were at. Not only can they get that truck for you, but they might be willing to work with you more.

 

[domin8]

The truck was actually at another lot 150 miles away. There aren't any 2011's that I could find, brand new, that were close. The dealer I visited would be acquiring the truck from another lot.

Anyway, I came home and contacted a buddy of mine from high school on Facebook who actually sells cars at a chevy dealership up North. I chatted with him briefly and he said that their invoice is around 51, and getting the truck at invoice (or slightly under) with tax and title may be a bit unrealistic - albeit, it does happen. As far as the mid 40 price is concerned, which I thought was too low, he seemed to think that number was incredibly unrealistic.

I'd have to think that as the new models hit the lot, if there are any 2011's left, that could change the dealers outlook. At the end of the day, I was looking for a deal and they apparently were not.

I'm going to shop around and see if I can locate a dealer that has one on their lot, and see what they are willing to do.

It's not unrealistic when incentives and rebates exist. Q2 & Q3 are typically the best times to bit cars because fewer are actually sold and the manufacturers want to move what is sitting on their lots waiting to go to dealerships. Iirc, GM traditionally holds a sale in July to move inventory.


Btw, OP, does your name on this forum have anything to do with a Glock you might own?

 

[G17GEN4]

It's not unrealistic when incentives and rebates exist. Q2 & Q3 are typically the best times to bit cars because fewer are actually sold and the manufacturers want to move what is sitting on their lots waiting to go to dealerships. Iirc, GM traditionally holds a sale in July to move inventory.


Btw, OP, does your name on this forum have anything to do with a Glock you might own?

Yep...I didn't end up with the truck but I am the proud owner of a new G17

He had claimed to show me a sheet that had their invoice price on it, but I took that with a grain of salt being that it was higher than I expected, and my high school buddy also quoted a lower invoice price - lower to the point that it seemed to be more than a difference from one dealer to the next.

I found one on ebay that was listed for 51 something (2011 LTZ, 5 miles on it), but unfortunately, it has already sold. If it was listed for 51.5 on ebay, that would have been a price I could have negotiated down into a figure I would have been happy with. Even though they will be more desperate to move them in a couple of months, there are also very few of them left, from what I am seeing.

 

[domin8]

If you can wait another year, I'd try doing this on a 2012. People tend to hold out for a new design when one is about to be released. GM will definitely push to get rid of 2012s.

 

[Modded]

I would say do what your heart tells you too. I would personally wait for a redesign.
And that whole thing about not buying the first two years of a new generation is not true. After all, most of the NNBS members on here have 07 and 08 models that do perfectly fine. Yeah they may have some issue here and there, but so do the 09 and 10 models.

 

[HOE-N-IT]

Yep...I didn't end up with the truck but I am the proud owner of a new G17

He had claimed to show me a sheet that had their invoice price on it, but I took that with a grain of salt being that it was higher than I expected, and my high school buddy also quoted a lower invoice price - lower to the point that it seemed to be more than a difference from one dealer to the next.

I found one on ebay that was listed for 51 something (2011 LTZ, 5 miles on it), but unfortunately, it has already sold. If it was listed for 51.5 on ebay, that would have been a price I could have negotiated down into a figure I would have been happy with. Even though they will be more desperate to move them in a couple of months, there are also very few of them left, from what I am seeing.

The invoice the dealer shows you usually includes a marketing cost (advertising) and also includes a 3% hold back which allows a dealer to borrow more to floorplan their inventory. The dealer will get this back when the vehicle sells. The inventory price on Edmunds.com is more accurate as a true dealer cost and even then the dealer can get other incentives from GM.

Since the vehicle was at another dealer maybe the dealer you were working with would have to pay invoice to transfer the vehicle to them. I would contact the dealer that has the vehicle. They may be willing to sell below invoice to get rid of a 2011.

 

[G17GEN4]

The invoice the dealer shows you usually includes a marketing cost (advertising) and also includes a 3% hold back which allows a dealer to borrow more to floorplan their inventory. The dealer will get this back when the vehicle sells. The inventory price on Edmunds.com is more accurate as a true dealer cost and even then the dealer can get other incentives from GM.

Ah, thanks for the info.

As far as the redesign, I would much rather get a 2011, or in the future, a 2012 at 0% than have the new design, unless they did some wonderful things with the new model. In my opinion, the interior could use a lot of work, especially for a 55 thousand dollar vehicle. I'd be looking for major upgrades on the interior, to start.

That being said, I am a huge fan of the current styling - and the 0% would most likely have me leaning toward a 2012 when dealers are trying to get them off the like, much like they are currently doing with the 2011's.

 

[Denali0229]

I had a Glock. Loved that gun. It was so reliable, never jammed and was accurate. That's unfortunate with the truck. Stay patient and you'll get what you want. It's when you get impatient, that you get a less favorable deal. And don't fall in love with one truck. That tends to put the favor on the dealerships side. Nowadays, you can do most of the negotiating online and have the truck and paperwork ready for you. My last car was a Honda accord. The invoice price was $25k fully loaded on KBB. I emailed a dealer and said, the invoice price is $25k, I'll give you $25,500. Not sure if he misread it or what but I got a response that said I can have it for $23,500. I drove down in a few days, test drove it, signed the paperwork and drove home. It was really easy. I asked a friend who works at a local Honda dealer and he said he couldn't have come close to that deal and that the dealer is one of the largest in the nation and they can afford to do it where his dealer couldn't.

 

[AmazinglySmooth]

Try Costco's auto program.

 

[phileaglesfan]

I wouldn't buy a 2012 for more than invoice right now. Dealer gets his breaks later on. With a 2011 they would have to be thousands below invoice to even get me thinking about pulling the trigger.

Reasons

- Current design is in its 6th year, not modern one bit. The Yukon/Tahoe/Escalade have a lot going for them but they are starting to show their age.

- Gas mileage is pitiful. I knew it would be since it weighs around 3 tons but getting 12-14 mpg in the city is not good when gas gets $4-5 a gallon.

- Everyone is buying small which means big should be good deals for the buyer.

- Redesign is a couple years away.

- There are a lot of alternative vehicles out there for the price of these vehicles.

Who knows about the redesign though. People still need a vehicle to pull around their campers/trailers/boats/etc. Most crossovers pull 3-5k which is barely a car/trailer.

 

[domin8]

12-14 mpg??? Let's try that one again. The OP wants a Tahoe, not a Denali or Escalade. Tahoe mpg starts at 15 and goes up from there. Show me a truck-based SUV that seats 8 that gets better fuel economy than a Tahoe? Closest I found so far was a base model Nissan Pathfinder with a V6 and was only 2wd. Interestingly, that's also smaller than a Tahoe.

If everybody is buying small, then why are the top 2 vehicles that are bought every year the Ford F150 and Chevy Silverado?

Try again on the redesign. It looks to be months, not years.

Yes, there are other vehicles. But do they satisfy the OPs needs? For the price of a Tahoe I could buy sports car, but our won't tow or seat 7+.

You are are correct about the towing capability of crossovers. Iirc, the Explorer and Acadia/Traverse/Enclave both tow up to 5k. However, they also aren't much more fuel efficient than a gas engine Tahoe. Here's one that'll tickle you though. The hybrid Tahoe out tows the gas engine Tahoe, has a bigger and more powerful V8, and still gets better fuel economy. Nobody else makes a hybrid fullsize SUV.

And, now that I'm taking about hybrids, and the OP wants a smoking hot deal on a new SUV, would the OP be interested in a new 2010 Yukon hybrid? Last I checked there was a dealer 20 minutes from me that had it listed as used because they were never able to sell it. It was not a demo.

 

[randuff]

I believe that 0% financing offers are notoriously hard to qualify for, .

FALSE, it is fairly easy

I finance Chevrolets for a living and I can get a 550 credit score 0% as long as their income justifies it. It's all about how much rapport the Dealer has with Ally (or WFDS if you are west coast) and 0% is cake. Especially is the dealer is a Champion's Club dealer like we are.

Randall

---------- Post added at 01:17 AM ---------- Previous post was at 01:12 AM ----------

Try Costco's auto program.

You can negotiate a better price than using that.

---------- Post added at 01:25 AM ---------- Previous post was at 01:17 AM ----------

The rule of thumb is to negotiate the trade-in separately from the new truck. I wouldn't even mention it until you got a price on the new truck settled. That has always been my experience otherwise they'll start factoring your trade-in and crunching numbers that will be in their favor.

I love reading what people have to say about negotiating the "right" way. I have done this for 18 years and it doesn't matter how or in what order you negotiate. As long as you treat each part separately (Price, Trade, rate) and have done your due diligence you can negotiate a great deal.

Some people are just terrible negotiators and other much better. And when people say us dealers try to screw the customer we aren't, we are in a business to make profit so unless I ASK for top dollar for mine, bottom dollar for yours I'll never get it. It is the CONSUMERS responsibility to try to get a fair deal. And remember you can always walk away from whatever deal is on the table. A fair deal is really only a fair deal if the consumer thinks it is, regardless of how much profit or loss a dealer makes.

 

[phileaglesfan]

12-14 mpg??? Let's try that one again. The OP wants a Tahoe, not a Denali or Escalade. Tahoe mpg starts at 15 and goes up from there. Show me a truck-based SUV that seats 8 that gets better fuel economy than a Tahoe? Closest I found so far was a base model Nissan Pathfinder with a V6 and was only 2wd. Interestingly, that's also smaller than a Tahoe.

If everybody is buying small, then why are the top 2 vehicles that are bought every year the Ford F150 and Chevy Silverado?

Try again on the redesign. It looks to be months, not years.

Yes, there are other vehicles. But do they satisfy the OPs needs? For the price of a Tahoe I could buy sports car, but our won't tow or seat 7+.

You are are correct about the towing capability of crossovers. Iirc, the Explorer and Acadia/Traverse/Enclave both tow up to 5k. However, they also aren't much more fuel efficient than a gas engine Tahoe. Here's one that'll tickle you though. The hybrid Tahoe out tows the gas engine Tahoe, has a bigger and more powerful V8, and still gets better fuel economy. Nobody else makes a hybrid fullsize SUV.

And, now that I'm taking about hybrids, and the OP wants a smoking hot deal on a new SUV, would the OP be interested in a new 2010 Yukon hybrid? Last I checked there was a dealer 20 minutes from me that had it listed as used because they were never able to sell it. It was not a demo.

15 mpg isn't a big jump from 12-14. What I found out that shocks people is when the gas pump starts to top $100. Personally I don't care as I bought our Denali because it is safe for my wife and people tend to avoid her. If you don't care about spending $100 a tank of gas that will get you from anywhere around 270-450 miles of city driving based on model and if it is extended version or not then the Tahoe and its siblings is a great vehicle.

Yes there are not many 7-8 passenger vehicles out there like the Tahoe but how many do you see are filled with more than 5 people?

Hybrid is a good option, limited to short wheel base though and some features get deleted if it hasn't changed from 09. I considered looking for a Hybrid Yukon but not with the resale value of my 09 and the redesign around the corner. Disadvantage for the hybrid is that they cost $5k more. You might make up the difference at the pump within 10 years.

Speaking of redesign, everything I have seen on the web is saying 2014 at the earliest that means 15 months before we see them on the dealer lots. Which isn't too long. If you don't like the redesign then there will be probably lots of 2013 Yukon/Tahoes out there.

If 7 passengers is a must then there are not many options out there however depending on how you actually use the vehicle Audi's Q7 is one of them. Of course they cost a little more but not much compared to luxury versions of the Tahoe/Yukon and especially the Escalade.

We love our Denali though but prospective buyers should be aware of how much gas will cost for it now and say 3-5 years from now. Can you live with $6 a gallon or so? Even at 15mpg a Tahoe has around 370 mile city range then, for around $150 of gas.

Also Silverados/F-Series are great sellers because they are good for work

 

[Goodinblack]

I can get 19+ MPG Hwy with my Suburban...... Just saying.

 

[G17GEN4]

Good discussion...

As far as gas - I work about 3 miles from home now, so that shouldn't be much of a concern.

I would not be open to a Yukon. I like the styling of the Tahoe much more.

As far as crossovers, I really like the Mercedes ML350. The interior is far superior to that of the Tahoe, better gas mileage, more customizable - the downsides being less capacity in terms of seating and towing - as well as more expensive service post-warranty.

 

[Denali0229]

Randuff, you clearly didn't read my post and just took what you wanted from it. As I said, you should negotiate the price of the truck separately from the trade-in. Is there something in that sentence that is incorrect? There are honest and dishonest dealers. At the end of the day its a business and they will squeeze every last nickel they can out of you as long as its ethical. I've had dealers tell me if I extended my loan to 72 months that I'm getting the deal I want. But the fact is, they didn't change a thing with the price, they lost lengthened the loan to reduce the payment so it appears as though I'm getting a better deal when in fact I was not. Unfortunately for them, I am a very educated individual in the finance industry and I know when you start swapping numbers, how they'll effect the bottomline. Please do not quote me and come off as what I said was incorrect b/c your statement supports what I said and it is a general concept in purchasing cars.

 

[G17GEN4]

Randuff, you clearly didn't read my post and just took what you wanted from it. As I said, you should negotiate the price of the truck separately from the trade-in. Is there something in that sentence that is incorrect? There are honest and dishonest dealers. At the end of the day its a business and they will squeeze every last nickel they can out of you as long as its ethical. I've had dealers tell me if I extended my loan to 72 months that I'm getting the deal I want. But the fact is, they didn't change a thing with the price, they lost lengthened the loan to reduce the payment so it appears as though I'm getting a better deal when in fact I was not. Unfortunately for them, I am a very educated individual in the finance industry and I know when you start swapping numbers, how they'll effect the bottomline. Please do not quote me and come off as what I said was incorrect b/c your statement supports what I said and it is a general concept in purchasing cars.

I'm always amazed when dealers ask if you want to negotiate price or payment. I was also a bit confused as to why this dealer asked me that after he heard me say that I'm a financial analyst. It was apparent that this guy wasn't serious about cutting the BS and making a sale, evidenced by the cliche salesman talk he was giving me from the get go.

 

[randuff]

I'm always amazed when dealers ask if you want to negotiate price or payment. I was also a bit confused as to why this dealer asked me that after he heard me say that I'm a financial analyst. It was apparent that this guy wasn't serious about cutting the BS and making a sale, evidenced by the cliche salesman talk he was giving me from the get go.

People should never negotiate payment with the salesperson (unless you know what the out the door price needs to be at a certain APR for the payment) this is how we make our money. I can pencil whip the shit out of the loan to get the payments to fit.

Another problem (mostly in new cars) is that these salespeople are new. Most tenured good salespeople are selling pre owned or high line. These new guys have it tough now. Manufacturers are cutting our margins and the competition is ridiculous.

Randuff, you clearly didn't read my post and just took what you wanted from it. As I said, you should negotiate the price of the truck separately from the trade-in. Is there something in that sentence that is incorrect? There are honest and dishonest dealers. At the end of the day its a business and they will squeeze every last nickel they can out of you as long as its ethical. I've had dealers tell me if I extended my loan to 72 months that I'm getting the deal I want. But the fact is, they didn't change a thing with the price, they lost lengthened the loan to reduce the payment so it appears as though I'm getting a better deal when in fact I was not. Unfortunately for them, I am a very educated individual in the finance industry and I know when you start swapping numbers, how they'll effect the bottomline. Please do not quote me and come off as what I said was incorrect b/c your statement supports what I said and it is a general concept in purchasing cars.

I did not read your post and take what I wanted from it, I mistakenly left out the part where I was agreeing with you. The post should have started with "^This^" and then pointing out it doesn't matter the order as much as it does taking them separately.