How Much Has A "new" 2009 Already Depreciated?

[tomseeley]

I'm shopping online for a new truck, and I'm finding lots of 2009s many dealers want to sell before the end of the 2009 model year. No surprise there. But my wife, who is much better at sniffing out bargains or non-bargains than I am, suspects that one reason a dealer may have marked a 2009 down a long ways (assuming one has) is that a 2009 has already lost a lot of its initial value through a year's depreciation while it sat on the dealer's lot. In one case I've found online, a truck that's got a good asking price has been in the dealer's inventory for almost exactly a full calendar year already!

 

Is she right that that truck maybe should be marked down a long ways because it has depreciated maybe about 1/3 in one year?

 

Is this a possible bargaining chip with a dealer if I start to haggle with him, over, say, how much he might give me on a trade-in, assuming I trade in at all?

 

Or is it mostly irrelevant, as I told my DW, since I usually drive any vehicle till it drops dead, so how much it has already depreciated probably isn't a big deal to me anyway?

[Stevens03]

Look at edmunds, KBB, and NADA for average trade-in values on a used 2009. That will give you a pretty good idea of how much they've dropped. Compare those prices with average retail of a used 2009 truck too. That will give you a pretty good idea of how much you could offer a dealership for a leftover 2009 pickup.

 

I'd try and deal as close to trade in price as possible simply because, thats all it's worth.

Good luck, and let us know how it goes.

[Iowa Rick]

I'm shopping online for a new truck, and I'm finding lots of 2009s many dealers want to sell before the end of the 2009 model year. No surprise there. But my wife, who is much better at sniffing out bargains or non-bargains than I am, suspects that one reason a dealer may have marked a 2009 down a long ways (assuming one has) is that a 2009 has already lost a lot of its initial value through a year's depreciation while it sat on the dealer's lot. In one case I've found online, a truck that's got a good asking price has been in the dealer's inventory for almost exactly a full calendar year already!

 

Is she right that that truck maybe should be marked down a long ways because it has depreciated maybe about 1/3 in one year?

 

Is this a possible bargaining chip with a dealer if I start to haggle with him, over, say, how much he might give me on a trade-in, assuming I trade in at all?

 

Or is it mostly irrelevant, as I told my DW, since I usually drive any vehicle till it drops dead, so how much it has already depreciated probably isn't a big deal to me anyway?

 

This is basic and what I've told my kids when they shop for a vehicle. It probably covers most of what you know but is based on my personal experience. I have several friends who sell cars and one who is a part owner in a GMC/Buick/Pontiac franchise.

 

The dealer still has his cost basis in the vehicle regardless of how long it is in stock. He is continually paying interest on his loan(s) to have his inventory. Obviously to stay in business he has to get his cost and operating expenses out of the truck and a little profit. If the vehicle is an unpopular color or its options aren't what the average buyer wants effects the selling price as well as the overall economic situation. In this case he might even take a loss just to get it off his lot. My Dealer friend had a 2004 Pontiac GTO on his lot over a year, he finally sold it for a $11,000 loss from his asking price, just to get rid of it.

 

The truck does not really depreciate until it is titled. When the 2010 models hit the lot the truck is one model year old but still new until titled. GM generally gives dealers some cash allowance to move old inventory when the new models come out. If you can afford it don't trade in a vehicle, obtain your financing or approval ahead of time through YOUR bank or Credit Union (My preference) and do your homework.

 

Don't fall in love with your choice of truck until AFTER you bought it, be prepared to walk away if you think you are not getting a good deal or are being jerked around.

 

Find a truck that has all the options or MORE that you want, especially if you keep it until the wheels fall off. You may regret it later if you dropped an option to save a few bucks and wished you had gotten it later. It's more expensive or impossible to add options after you own the truck.

 

Sometimes you can get a better deal at the end of the month if the dealer needs another sale to reach the next level of sales for additional factory cash.

 

Trade ins - on a newer trade in you will be getting approximately $4500 less than what the dealer will ask for it when he puts it on his lot. This is a large incentive to sell it yourself. However if you do trade it in it lowers your sales tax bill, this could be considerable if your trade is high bucks.

 

Do your research on sites like Edmunds, find out the current selling price through features like TMV - True Market Value. See what the average price others are paying for the same truck. Find out what rebates, incentives and dealer hold back is/are available. See what people on this site paid, maybe there is a dealer within a few hundred miles that is offering smokin deals which may make driving there worthwhile.

 

Most important is ATTITUDE. Be polite, non argumentitive and dont wear your "Holy" jeans. Coordinate your approach with your spouse. Work as a team. Sales staff perceptions will affect their approach with you.

Know what you are willing to pay for the truck and tell them right up front ( subtract a few hundred or so to allow some barganing if you enjoy that). Allow the the sales person one trip to his/her manager to relate the offer and accept or counter offer. Don't let them screw with you and try to wear you down. If you come to a price agreement have them write it down as well as any additional features or accessories you may be purchasing. If it is not on paper it is not in the deal and you may have problems later.

 

When you go see the finance person read everything before you sign. Check the math, bring a calculator if you think you may need it. Use your own financing unless you are going for a 0% deal but know you are paying for that somewhere in the purchase price. Dealerships generally get a kick back from the bank or finance company for generating the loan.

 

Don't but fabric protection, rust proofing, paint protection or the like unless you really think you NEED it.

This is one of the areas the dealership will make a large chunk of its profit. For example you may pay $395. for fabric protection whan you can go to WallyMart and buy a few cans of spray fabric protection for $30 and spray it yourself and get the same basic protection. Don't buy an extended warranty unless you really think the truck is a POS and will need it, but then why buy it??? If you can't sleep with out having the protection of an extended warranty then I would suggest buying the manufacturers plan but LATER, after you buy the truck. Dealers will discount warranty plans and you can find them being sold by large dealerships on the Internet.

 

Like I said this is basic but pretty much answers your question and more than you asked. I hope it helps. Rick