fair SLT price offer

chainslack · September 17, 2019

Hi all, newbie here with 95 Silverado 1500 5.7 2wheel teal and silver 103k garage original owner. (content)

......Not Trading the Silverado......

Hoping to gain an understanding as to a fair price to offer a dealer for the below SLT.

The truck is 63k presently with sept. incentives. I've checked all over for a year or more from Laura to south FL..

Without any great understanding of the dealer cost I'd like to believe that offering mid to upper mid 50s wouldn't be silly or an arrogant gesture.

Really like this configuration even more than the marked down Denali or high country configurations. (don't like painted bumpers)

2019 Summit white, cocoa dune, crew std box 4x4...Duramax plus pkg, Console, six spoke polished 20" wheels, bed liner,

roof lamps, assist steps chrome rectangular, 5th wheel prep, and off road suspension pkg.

We plan to visit the dealership in a week or so to make our offer.

Thank You

Steve

Edited September 17, 2019 by chainslack

Mikebtte · September 17, 2019

If that 95 is clean you can sell it for way more that a dealer will give you. When doing a trade in the dealership will usually take all the fluff in the price and make it look like you get a lot for the trade when you are clearly not.

Buy the truck you want and sell the 95 privet sale. You will get the best price that way.

brclark82 · September 17, 2019

This is what good pricing on a 2019 looks like...sometimes it’s hard to compare different parts of the country for pricing but here’s a start for you and you can look at others in the site for a better comparison, they have a ton of ‘19 2500s left and this dealer is as good as It gets. Good luck

https://www.laurabuickgmc.com/VehicleDetails/new-2019-GMC-Sierra_2500HD-Crew_Cab_Standard_Box_4_Wheel_Drive_SLT-Collinsville-IL/3504551043

Edited September 17, 2019 by brclark82

elcamino · September 17, 2019

Big Dealers like Laura get huge incentives from the manf. that smaller dealer do not qualify for. The more the sell, the less the cost of the vehicles due to manufacturer rebates and other dealer incentives. So the can afford to make less profit on a vehicle because the sales goal quotas by the OEM will pay a huge bonus at the end of the month, model year etc. Several small GM dealers in this area recently sold or closed because they could not compete with the bigger dealer.

Quote from a long time dealer who closed recenty

"A number of factors have led to this decision both personal and professional. Running a family owned single nameplate dealership outside of the major market has become very challenging. The costs of operations require a portfolio approach of brands in order to succeed even in community based markets like our beloved Marquette. The growth and prosperity of our community has attracted automotive groups to our market who have far greater ability to leverage these escalating industry costs.

Edited September 17, 2019 by elcamino

chainslack · September 17, 2019

Thank You guys for feedback.

Can anyone tell me if an offer of 58K (before tx/tg) is just wrong because their cost could be higher?

I don't want to be an insult to them I just want to stand firm on an offer for once.

This is a huge deal for us as we rarely buy a vehicle and drive the wheels off them or just keep them

when we do.

Steve

Jonathan Strother · September 19, 2019

I bought the same truck 3 weeks ago for 56K plus TTL, only difference was mine has black interior and no 5th wheel prep package.

chainslack · September 19, 2019

Thank You Jonathan,

This is great.

That's exactly the info I'm looking for. Did you have privy to your invoice or

their cost or did you just shoot them a number that you were going to stand on?

I'll be buying in central FL..

Steve

Jonathan Strother · September 30, 2019

That is what they had it on sale for already, I didn't haggle at all on the price of the new vehicle. All I haggled with them on was my trade in which I ended up getting more than I planned.

91 Shortbed Chevy · October 7, 2019

On 9/30/2019 at 5:41 PM, Jonathan Strother said:

That is what they had it on sale for already, I didn't haggle at all on the price of the new vehicle. All I haggled with them on was my trade in which I ended up getting more than I planned.

A friend of mine was working at a Chevy dealer a few years back and i bought a new Silverado 1500 from him. He said that the price of the new vehicle is structured by GM and the dealer has to sell for what GM says they can sell it for according to current incentives and programs. He said where he could shine would be on what he offered me for my trade in. He was right, he beat the other dealers by $2000 on my 2003 Silverado.

Cowpie · October 8, 2019

That link to the one at Laura Buick GMC is getting in the ball park, but still should come down some. My regular attainable goal is to pay 80% of MSRP or less. Every dealer in the nation can still make a fair profit selling any vehicle for 80% of MSRP. All the incentive stuff is just marketing fluff to entice buyers or for the dealer to pay 3 card monty with the customer and keep the customer's focus diverted. Forget that rot and always keep deal on a simple level. What is takes to write a check and drive it off the lot. You focus on the purchase price and let the dealer worry about how to make it work.

80% of MSRP for the vehicle, before TTL is very reasonable. There are thousands of dealers in the nation. One will go for that, small or large doesn't matter. They all have to pay on their floor plan for the vehicles sitting on the lot. And any dealer in the nation can have any vehicle brought to them from any other dealer. I bought a 2013 Silverado and a 2006 Jeep Liberty Diesel that way. Had the vehicles brought to the dealers I worked with on the sales. The Jeep even came from out of state, over 200 miles away. And I still got good deals. My current 2015 2500HD, I bought from a dealer about 60 miles from me. Gave a couple dealers nearer to me a chance and we couldn't come to terms. The 2500HD MSRP was a little over 49K. I got it for $38K in 15 minutes. Over 80% off. No truck sale month, no end of model year close out stuff. And I still have no clue what incentives were in play. Could care less. I just knew I would not pay more than 80% of MSRP. And I actually did better than that.

Edited October 8, 2019 by Cowpie

Cowpie · October 8, 2019

7 hours ago, 91 Shortbed Chevy said:

A friend of mine was working at a Chevy dealer a few years back and i bought a new Silverado 1500 from him. He said that the price of the new vehicle is structured by GM and the dealer has to sell for what GM says they can sell it for according to current incentives and programs. He said where he could shine would be on what he offered me for my trade in. He was right, he beat the other dealers by $2000 on my 2003 Silverado.

That is not true. The OEM sells the dealer the vehicle and the dealer, or rather their floor plan financial backing pays for the vehicle. Dealerships typically have a financial agency, bank, etc bankroll the inventory and the dealer pays interest on each vehicle in the floor plan until it is sold. It is called floor plan inventory. Very common for both new and used auto dealers and a solid investment concern on the part of a financing agency or bank.

Dealers specify to the OEM what vehicles they want delivered and taken possession of based on the dealer assumptions about what they can sell. The OEM just doesn't shove vehicles out the factory door and force dealers to take possession. Vehicles are made according to what dealers order and want delivered to them.

And the price a dealership gets hit for from the OEM has nothing to do with any incentives and rebates. That stuff is all marketing fireworks to distract the potential buyer. The OEM may provide some incentive to the dealer to move slow selling vehicles, but they are under no obligation to do so. Once the dealer takes possession of a vehicle, they own it and the OEM has already gotten its money for the vehicle.

Once a vehicle is delivered to a dealer, the dealer (or in most cases, the financial floor plan) owns the vehicle. What the dealer sells the vehicle for is totally up to the dealer. If the dealer want to give vehicles away, the OEM could care less, as they already got their money. Even if they can't sell it, the OEM is not on the hook any more after the vehicle is delivered from the factory. The OEM might help the dealer a little if the dealer cannot move a particular vehicle, but there is a point where the OEM just washes their hands and lets the dealer founder with a no sale. The dealer could actually end up taking it in the shorts and lose money just to get the vehicle sold. Here is a video made by a dealer.....

Edited October 8, 2019 by Cowpie

91 Shortbed Chevy · October 8, 2019

5 hours ago, Cowpie said:

That is not true. The OEM sells the dealer the vehicle and the dealer, or rather their floor plan financial backing pays for the vehicle. Dealerships typically have a financial agency, bank, etc bankroll the inventory and the dealer pays interest on each vehicle in the floor plan until it is sold. It is called floor plan inventory. Very common for both new and used auto dealers and a solid investment concern on the part of a financing agency or bank.

Maybe it isn't true, i guess i don't know. That was my experience in my area anyway. Maybe the dealers in my area have some kind of agreement in that respect, who knows? What it came down to for me was what i could get for my trade. Maybe next time i buy i should cast a bigger net and talk to dealers farther from me. Good luck with your purchase Chainslack.