Resale value

[yates ™]

yeah...development costs would be a major factor in calculating total cost....which is exactly my point.

Which makes your comment about me needing to learn read invalid.

I would like an apology.

 

[CEN2MENTAL95]

Which makes your comment about me needing to learn read invalid.

I would like an apology.

I'm sorry you bought a pickup truck

 

[yates ™]

I'm sorry you bought a pickup truck

And I am sorry you own/ed a Prius but I was look for a legitimate apology.

 

[MACHO]

http://www.reuters.com/article/2012/09/10/us-generalmotors-autos-volt-idUSBRE88904J20120910
I was aware of the Volt debacle, what I wasn't aware of was GM was losing money on (what used to be at least) bread/butter vehicles like Tahoes. Is that what's happening, new Tahoes are sellng for around 10 grand under msrp?

Depends on manufacturer rebates. Rough math on Our 2011: $50k MSRP, less $3000 for invoice price, less $4000 rebate, less $1500 Dealer Holdback.

The argument of GM "losing money" on a said vehicle isn't valid unless one really knows the true cost to build a vehicle. I certainly don't. Obviously GM is able to give away at least $4k for year end incentives. Now if you were to say the dealer might be losing money, I could see that argument based upon the Invoice price they "buy" the vehicles from GM. however I would imagine GM makes money even after the holdback. Maybe someone with more knowledge on that matter will know?

And I am sorry you own/ed a Prius but I was look for a legitimate apology.

 

[erikrichard]

Thank you for sharing those numbers. When did you buy the '11, was it a leftover? did it seem to you the dealer was used to writing up new Tahoes at invoice or did you feel you got an exceptional deal? Was that rebate and $1500 discount taken off at purchase or mailed to you at a later date?
My ignorance is certainly showing, but I'm glad I started the thread. It seemed hard to believe buyers were losing $20k in depreciation in that first year, $10k is a lot more reasonable, although still completely unnacceptable for a cheapass like myself.

 

[MACHO]

Thank you for sharing those numbers. When did you buy the '11, was it a leftover? did it seem to you the dealer was used to writing up new Tahoes at invoice or did you feel you got an exceptional deal? Was that rebate and $1500 discount taken off at purchase or mailed to you at a later date?
My ignorance is certainly showing, but I'm glad I started the thread. It seemed hard to believe buyers were losing $20k in depreciation in that first year, $10k is a lot more reasonable, although still completely unnacceptable for a cheapass like myself.

Not sure about leftover, but it was end of year. I actually dealer-located the vehicle with exactly the options I wanted...no nav or rear entertainment, but every other option- luxury package etc. They drove 300 miles to get it, other wise I would have negotiated harder. Being in Sales for a Corporation and having prior Car Sales experience works to my advantage or negotiating...

Manufacturer Rebates are always taken off the purchase price. Dealer Holdback is typically 3%. So the approx $1500 of that money really depends on how you negotiate and if they dealer is willing to give up any of it.

Invoice deals are very common as most buyers who educate themselves by reading online or who use purchasing programs thru Costco base their deals on the Invoice. What many people do not know about is the Dealer Holdback. At the end of the day if you are dealing with a large dealership that's sells high volume, or if they have some sort of motivation-- i.e.-end of the month quota, salesperson bonus, dealer volume bonuses, then they will be more willing to sacrifice profit for selling a unit. Then they make up the profit on the poor shmucks that don't know better or who don't have any cool Forum friends to fill them in on all the details

And again, I hear ya on the depreciation you still take even if you negotiate a good deal. I knew I'd take a little higher of a hit on my vehicle as opposed to buying lightly used. The full warranty has a value to it however as well as the peace of mind of knowing exactly what's gone on with it or how it's been treated from day 1. Those two things may not have a hard line dollar amount associated with them. But IMO, that has a lot of value to it for someone like myself who plans to keep their vehicle for a long period of time.

 

[erikrichard]

I know I'm stating the obvious here, but the biggest factor in the values of all of our trucks is the price of fuel. It's mind boggling how many Tahoes/Yukons are for sale right now, book value is pretty much out the window. "Car-based suvs" (I call them station wagons) are a downgrade in every way except mpg to our trucks, but mpgs are definately driving the market.
I bought mine last year only because I put about 8k miles/year on it. If I put avg miles of 15k/year I'd be looking for a way out, which looks like an ugly prospect no matter what year truck you have.