Horrible Resale Value

[Neutron]

I like how GM has helped kill the resale value of my truck. 3 years and I'm still upside down no thanks to the nearly $6000 in rebates GM offers on the new ones.

 

Add to it the creaks and groans my 2007 new body does now and it makes owning this thing horrible. GM refuses to fix those problems. I now also have the horrible clunk when stopping almost every time now.

 

Even GM won't give me close to trade in value even though my truck is well maintained and cared for.

[Mckenzie]

thats why i buy used, that way your not the one taking the big hit when you got to sell it

[Daryl LBZ]

thats why i buy used, that way your not the one taking the big hit when you got to sell it

 

 

 

 

 

Yea I dont think I'll ever buy brand new again. If I do buy it will be slightly used.

[Bowtie2Sierra]

No offense to the OP but it sounds like you financed more than you should have on your truck if you are upside down. That or you paid a premium when you bought. The rebates are nothing new and have been around way beyond when you bought yours.

 

I bought mine new with 6 miles on 6/30/08 for $29,400. I tossed around the idea of trading it in a few weeks ago and recieved a trade in offer of $26xxx. Based on truck prices around here, I could probably sell it on my own for $27-28K if I wanted to. Not sure there is any room to complain about resale with those numbers.

[old-chevy-dude]

it's not Chevy, Chrysler, Fords fault. it's the bias one sided industry that believes that imports are better..

 

take a look at Toyota, recall after recall in the past year, the media has been beating them to death but their resale value is still stable and high.. I owned a 2006 Chrysler 300c 5.7L Hemi I paid $32,500 OTD for it in 4/2006, in 10/2006 we bought the Girl Friend a 2007 Camry Hybrid which we also paid $32,500 OTD.

 

Both vehicles equipped almost identical with the exception of the motors, power everything, sunroof, Navigation/Ipod, remote start, etc

 

I traded my 300c with 84,930 miles for the Avalanche and got $13,500 for it on the trade, 2/3s of what I bought it for. Camry with similar miles so for $hits and grins we asked what the trade on that would be, and were offered $21K for a trade..

 

in theory the Camry is a year newer even though it was bought in 2006 it's model year is 2007 so it has a little higher mileage than it should for the "model year" age which is 3 years but the vehicle is 4 years old and we were offered more for it even with the mileage hit.

 

 

Why is the Camry worth more? perception, the perception that even though Toyota is having issues it produces a better car. Having owned Ford, Chrysler, GM, Honda, Toyota, BMW, and MBZ there is no real quality difference between them, a $30K vehicle is a $30K vehicle and they all experience the same creaks, groans, and issues over time.. MBZ (Merc. Benz) has the worst resell of anything out there, a $120K S-Class is worth 1/5th of it's new price in 5 years..

 

 

it's unfortunate but a vehicle is and always be an expense not an investment, with the exception of a few rare models. and now with manufacturers jacking the prices beyond reason, then offering these high discounts and employee pricing (which is basically putting the vehicle at the price it should be in the first place) it kills the resell of all existing purchases.

 

I love my new Avalanche, and I got a great price on a dealer demo vehicle with 795 miles and I paid what I feel the Avalanche is worth, $37K ($43 OTD) the AV isn't anymore vehicle than my 2000 Silverado Z71 which sold new for $34K fully loaded LT Model. Both have all the same features, with the exception that the AV has rear entertainment, cooled seats and Nav. But other than that both had 5.3L, 4WD, Leather, heated seats, DIC, Steering Controls for Radio, Dual power seats, etc etc etc.. So does Cooled Seats, Nav and a rear entertainment system make the truck worth $20K more?

 

Hell no.. I could add all those aftermarket for under $2000, and why offer a $6000 rebate on the truck bringing it down to $47K if it's MSRP is $53K?

 

fact is that American cars have so much cash built into the back end that they can sell their cars for about $10K off and still turn a healthy profit on most models, it doesn't cost any more money to build a Caddy EXT than an Avalanche and the Caddy doesn't have any additional features, but sells for $10K more because of the name.

 

I haven't bought "new" since 1993, all I have purchased since then have been lease returns or demo vehicles, and the demo vehicles have always been the GM's or the Owners (i've had 3 demo trucks from the same dealer) because the GM and Owner get the high line cars and take care of them as they affect their bottom line, where in the Service and Sales people tend to get lower models and are careless with them because it doesn't affect them directly.

[Wires]

I like how GM has helped kill the resale value of my truck. 3 years and I'm still upside down no thanks to the nearly $6000 in rebates GM offers on the new ones.

 

Even GM won't give me close to trade in value even though my truck is well maintained and cared for.

 

+1 on that one. My '08 SD can be bought today with $12k in rebates. Doesn't matter if you buy used, market is all screwed up.

 

Why would you buy a 2-3 year old vehicle, when a new one is marginally more, cheaper financing and full warranty? Everyone that has a 07-09 won't get "what it's worth" on a trade or sale. Before the giant rebates, it made perfect sense. With new you are paying for a lot of expensive depreciation. But now, not so much.

[reidrhollander]

I was kind of thinking just the opposite. Because of rebates and the 0% financing I could actually trade my 09 in right now for a '10 and end up with a lower payment because the financing is 72 months rather than 60. Because of 0% financing this is the first new vehicle I have had that I HAVEN't been upside down on after a year and some change worth of payments.

[oldmann]

it's not Chevy, Chrysler, Fords fault. it's the bias one sided industry that believes that imports are better..

 

take a look at Toyota, recall after recall in the past year, the media has been beating them to death but their resale value is still stable and high.. I owned a 2006 Chrysler 300c 5.7L Hemi I paid $32,500 OTD for it in 4/2006, in 10/2006 we bought the Girl Friend a 2007 Camry Hybrid which we also paid $32,500 OTD.

 

Both vehicles equipped almost identical with the exception of the motors, power everything, sunroof, Navigation/Ipod, remote start, etc

 

I traded my 300c with 84,930 miles for the Avalanche and got $13,500 for it on the trade, 2/3s of what I bought it for. Camry with similar miles so for $hits and grins we asked what the trade on that would be, and were offered $21K for a trade..

 

in theory the Camry is a year newer even though it was bought in 2006 it's model year is 2007 so it has a little higher mileage than it should for the "model year" age which is 3 years but the vehicle is 4 years old and we were offered more for it even with the mileage hit.

 

 

Why is the Camry worth more? perception, the perception that even though Toyota is having issues it produces a better car. Having owned Ford, Chrysler, GM, Honda, Toyota, BMW, and MBZ there is no real quality difference between them, a $30K vehicle is a $30K vehicle and they all experience the same creaks, groans, and issues over time.. MBZ (Merc. Benz) has the worst resell of anything out there, a $120K S-Class is worth 1/5th of it's new price in 5 years..

 

 

it's unfortunate but a vehicle is and always be an expense not an investment, with the exception of a few rare models. and now with manufacturers jacking the prices beyond reason, then offering these high discounts and employee pricing (which is basically putting the vehicle at the price it should be in the first place) it kills the resell of all existing purchases.

 

I love my new Avalanche, and I got a great price on a dealer demo vehicle with 795 miles and I paid what I feel the Avalanche is worth, $37K ($43 OTD) the AV isn't anymore vehicle than my 2000 Silverado Z71 which sold new for $34K fully loaded LT Model. Both have all the same features, with the exception that the AV has rear entertainment, cooled seats and Nav. But other than that both had 5.3L, 4WD, Leather, heated seats, DIC, Steering Controls for Radio, Dual power seats, etc etc etc.. So does Cooled Seats, Nav and a rear entertainment system make the truck worth $20K more?

 

Hell no.. I could add all those aftermarket for under $2000, and why offer a $6000 rebate on the truck bringing it down to $47K if it's MSRP is $53K?

 

fact is that American cars have so much cash built into the back end that they can sell their cars for about $10K off and still turn a healthy profit on most models, it doesn't cost any more money to build a Caddy EXT than an Avalanche and the Caddy doesn't have any additional features, but sells for $10K more because of the name.

 

I haven't bought "new" since 1993, all I have purchased since then have been lease returns or demo vehicles, and the demo vehicles have always been the GM's or the Owners (i've had 3 demo trucks from the same dealer) because the GM and Owner get the high line cars and take care of them as they affect their bottom line, where in the Service and Sales people tend to get lower models and are careless with them because it doesn't affect them directly.

Chrysler still has a poor reputation.

[Zembonez]

No offense to the OP here, but I see you live in Texas. I am a car buyer by trade and trucks hold their resale pretty darn well. No way you should be upside down after paying payments for three years unless you financed it too long or went into the loan at a really inflated amount. A three year old vehicle should be well into the equity mode.

 

Rule of thumb here is NEVER finance a vehicle for more than 60 months (finance for 48 preferably). I see people financing for 72 and even 84 months. WOW, are they gonna be screwed if their vehicle gets totaled or needs to be traded in 2 or 3 years!

[old-chevy-dude]

Chrysler still has a poor reputation.

 

 

true, but their resell value is directly effected by the fact that they sold their $50K SRT models for employee pricing for 2006 - 2008 as a result those of us that paid normal retail prior to the employee pricing took a big hit in 2007 and 2008.. if I had traded my 300C last year (as I was looking to) best I was offered was $8500 leaving me almost $6000 upside down..

 

the Cash for Clunkers program is what saved me, the resale value of some models has gone up since last year because a lot of dealers are in short supply on used vehicles this year, and new sales are soft because of the C4C last year.. 2010 was a hard year for car sales because of the C4C program in 2009 which put a lot of used vehicles out of service, and a lot of people purchased new vehicles that normally would not have.

 

The Auto industry is still hurting, and will for another 3 - 5 years, especially the "Big 3" because as I said, they have too much back end cash built into the pricing and are too greedy to change things.

[old-chevy-dude]

No offense to the OP here, but I see you live in Texas. I am a car buyer by trade and trucks hold their resale pretty darn well. No way you should be upside down after paying payments for three years unless you financed it too long or went into the loan at a really inflated amount. A three year old vehicle should be well into the equity mode.

 

Rule of thumb here is NEVER finance a vehicle for more than 60 months (finance for 48 preferably). I see people financing for 72 and even 84 months. WOW, are they gonna be screwed if their vehicle gets totaled or needs to be traded in 2 or 3 years!

 

GAP insurance..

 

but I agree I never finance for past 48 months.. a car payment is built into my monthly budget, and my car payment hasn't changed in monthly amount since 1996, but I have always put large amounts down to maintain a 48 month payment.

[Zembonez]

US carmakers have long been guilty of poor resale value but it had little to do with their quality and everything to do with whoring themselves out to the rental and fleet buyers. It's really a simple matter of too many fleet cars being dumped into the market. I see TONS of 1 and 2 year old fleet and rental American cars at auctions for ultra cut rate prices. Simple supply and demand. The sheer number of them drives down the prices and everybody's resale suffers because of it.

 

You do not see this at Toyota or Honda... and their cars bring premium money at auction because of it.

 

It's not that they make a better car. They just have a better business plan.

[reidrhollander]

No offense to the OP here, but I see you live in Texas. I am a car buyer by trade and trucks hold their resale pretty darn well. No way you should be upside down after paying payments for three years unless you financed it too long or went into the loan at a really inflated amount. A three year old vehicle should be well into the equity mode.

 

Rule of thumb here is NEVER finance a vehicle for more than 60 months (finance for 48 preferably). I see people financing for 72 and even 84 months. WOW, are they gonna be screwed if their vehicle gets totaled or needs to be traded in 2 or 3 years!

 

At 0% interest I am going to finance as long as they will let me.

[Zembonez]

No offense to the OP here, but I see you live in Texas. I am a car buyer by trade and trucks hold their resale pretty darn well. No way you should be upside down after paying payments for three years unless you financed it too long or went into the loan at a really inflated amount. A three year old vehicle should be well into the equity mode.

 

Rule of thumb here is NEVER finance a vehicle for more than 60 months (finance for 48 preferably). I see people financing for 72 and even 84 months. WOW, are they gonna be screwed if their vehicle gets totaled or needs to be traded in 2 or 3 years!

 

At 0% interest I am going to finance as long as they will let me.

 

That's fine as long as you don't need to trade in two years. If so, you'll be upside down for sure! If you are keeping the vehicle, I guess that is OK... but I don't like bills. My truck is paid for and has been for some time. I only paid payments on it for about 18 months,

[old-chevy-dude]

No offense to the OP here, but I see you live in Texas. I am a car buyer by trade and trucks hold their resale pretty darn well. No way you should be upside down after paying payments for three years unless you financed it too long or went into the loan at a really inflated amount. A three year old vehicle should be well into the equity mode.

 

Rule of thumb here is NEVER finance a vehicle for more than 60 months (finance for 48 preferably). I see people financing for 72 and even 84 months. WOW, are they gonna be screwed if their vehicle gets totaled or needs to be traded in 2 or 3 years!

 

At 0% interest I am going to finance as long as they will let me.

 

That's fine as long as you don't need to trade in two years. If so, you'll be upside down for sure! If you are keeping the vehicle, I guess that is OK... but I don't like bills. My truck is paid for and has been for some time. I only paid payments on it for about 18 months,

 

 

 

 

since t's a '57 Schwinn I would hope it's paid off