Suprised offer from dealership. Is this common?

[hotdogger]

Long story short

 

My 2015 Sierra SLE 60,000Km

 

Their

 

2018 Silverado LT 3,000km

 

10k more pinciple, 2% Lower interest rate. $60 Lower monthly payment ,no payment till August, new warranty.

 

I have till tuesday to decide.

 

I'm sitting here thinking about how I'm being ****ed.

 

Edited May 13, 2018 by hotdogger

[Kyleorsini]

Easy, they take your truck sell it used for a profit. You get new truck sure payments and rate will be lower but your payments are that much longer now. Then In a couple years they dangle a new truck in your face and rinse and repeat


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[Boardmember]

Yep.   Remaining term and new term are the missing variables.   No payment til August would better I’d it were double payments til August!

[duquephart]

Beware dealers bearing gifts.

[NWI Denali]

Lower payments but for how many more mos??? Payment shoppers are a stealership's wet dream.

[Colossus]

Never trade in.  Always private sale. 

[Jessman]

7 hours ago, Colossus said:

Never trade in.  Always private sale. 

This can depend on value and tax savings with trade in

[tnchevy]

Cash is king, and the borrower is always going to be a slave to the lender.  Keep your truck and start saving your money and then pay cash for your next one.  When it comes to trading a vehicle it is almost always better to sell private than trade in but their are some exceptions.  In my state you only pay tax on the difference between trade in value and the purchase price of the dealership vehicle (new or used) and the tax I pay is about 7.5%.  That is a big chunk of change and can mean it may not be worth the extra effort to sell privately.  Before I buy my new (or new to me) vehicle I research what people are paying on average for that vehicle and then I do research on what people are trying to sell my vehicle for used both private and dealerships.  I work up those numbers and figure out the max I willing to pay after trade allowance and dealer fees and I tell them to not include taxes, tags, and title because you pay that no matter what.  I tell them they can give me a dollar for my used truck and charge what ever fees they want, I don't care, just as long as they give me an out the door number.  Dealerships hate that because they try to confuse you with this great trade in amount or how cheap your getting the new truck.  If that number they give me is at or below what I am willing to pay then I will buy it right then, if not then I go to the next dealership and then the next.  If I can't get what I want trading in then I will sell private but I work 60 hours a week and just don't have time to deal with selling a vehicle so I avoid it if I can.  I also do not give them my phone number for them to call me later nor an email address.  I don't even give them my license for them to copy, I just walk if they ask for it.  

Edited May 14, 2018 by tnchevy

[aseibel]

39 minutes ago, tnchevy said:

Cash is king, and the borrower is always going to be a slave to the lender.  

I agree with almost everything you said. But I'd like to add this: Cash may not always be better. The dealer makes no interest on cash. They would rather you finance though them. They may offer you incentives to do that. Go ahead and finance if they give you a deal, then pay it off immediately. Then you still avoid any interest, but take advantage of any financing incentives they offer.

 

17 hours ago, hotdogger said:

I'm sitting here thinking about how I'm being ****ed.

You are being ****ed because they are trying to tie you into making payments forever. You "save" $60 a month, but never end up owning your truck and never build any wealth because you begin a cycle of paying the bank forever. You need to decide what is more important for you: financial security, or driving the newest shiniest truck. Its up to you, if you have means, to can choose whatever makes you happy.

[hotdogger]

40 minutes ago, aseibel said:

 

 

You are being ****ed because they are trying to tie you into making payments forever. You "save" $60 a month, but never end up owning your truck and never build any wealth because you begin a cycle of paying the bank forever. You need to decide what is more important for you: financial security, or driving the newest shiniest truck. Its up to you, if you have means, to can choose whatever makes you happy.

 

Thanks for an actual reply.

 

I have financial security. I value the warranty. I value the joy I get from getting a new treat for myself.

 

 

I'm going to do it. 

 

 

 

 

 

 

 

 

Edited May 14, 2018 by hotdogger

[benny12]

9 hours ago, Colossus said:

Never trade in.  Always private sale. 

I 100% agree with for a vehicle under $10k. I debate this for more expensive private sales. Not because of the transferring of money, but the hassle (buyer has to get a loan) and mostly the lack of potential buyers.

 

Don't quote me on these numbers: We traded in my wife's 3 year old Maxda CX5 on her new car. Similar vehicles were on lots for $19-21k. Carmax gave me a quote for $15k. Our dealer wanted to give us $14k, I think I got him up to $15 or 16. With the ~8.65 % sales tax we pay the numbers tighten up.

Carmax = $16,000

Trade in True Value: $15,500 x 1.0865 = $16,840

Realistic Craigslist Sale = $19,000

 

Delta CL-Trade in = $2,260

 

We decided it wasn't worth the $2,200 risk for a vehicle of that value to sit in our driveway waiting for a Craigslist buyer to come through. She felt pretty strongly that anyone that's buying a $20k vehicle is going to do it at a lot, not Craigslist. I'll do a lot for $2k, but at what point is it foolish?

 

Anyone have any experience?

[benny12]

41 minutes ago, hotdogger said:

 

Thanks for an actual reply.

 

I have financial security. I value the warranty. I value the joy I get from getting a new treat for myself.

 

 

I'm going to do it. 

 

 

 

 

 

 

 

 

Good reasoning.

 

Remember, they came to you. I bet they have wiggle room and can do better. They are definitely not coming to you with their best and final  offer.

[frenchsquared]

Did everyone miss that the new truck has 3,000 miles. Its a demo. Isn't that like $5,000 off these days? 

 

I doubt the dealer is really trying to screw you. If the terms are what your use to and you love the truck go for it. But I find out what you are paying for a slightly used new truck. 

[aseibel]

1 hour ago, hotdogger said:

I'm going to do it. 

More power to you. Just go in armed with all the information and get the best deal you can.

 

24 minutes ago, frenchsquared said:

Did everyone miss that the new truck has 3,000 miles. Its a demo. Isn't that like $5,000 off these days? 

3000 km is 1800 miles. Still something worth pointing out to the dealer when negotiating.

 

46 minutes ago, benny12 said:

I 100% agree with for a vehicle under $10k. I debate this for more expensive private sales. Not because of the transferring of money, but the hassle (buyer has to get a loan) and mostly the lack of potential buyers.

Totally correct. Its hard for people to come up with that much cash and getting a loan for a private sale can be difficult. We sold my wife's Camry for full KBB private party value of $7500, got $2000 more than dealer would have given us on trade. For newer vehicles you may have to trade-in to protect yourself. When I sell vehicles they aren't worth more than 10 grand so its not an issue, lol.

 

[duquephart]

16 hours ago, Colossus said:

Never trade in.  Always private sale. 

 

Almost a hard and fast rule. But not quite. There are situations wherein trading is, at least, not a bad idea.