Trade in VS Keep

TA_Fab · April 1, 2020

Looking for some input on my situation. My truck is getting close to hitting 100k and being out of warranty. Below is my current situation. Right now the only thing holding me back is I don’t care about having a new truck.

2017 Z71 with 96K on the clock

Currently financed at 3.4% and am slightly ahead on my loan because I pay extra every month. I’m guessing after 100k that value drops more?

I travel a lot for work and get paid to use my personnel truck ($.58 / mile) so I need a reliable truck.

Would finance through GM to get the 0%

Any advice from guys in a similar situation?

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Mandalorian · April 1, 2020

I'm guessing most of your current mileage is highway, so the truck should still be in pretty good shape. They will easily last 200k with regular servicing, probably 300k if you're doing 90%+ highway miles.

The bottom line is a new truck is going to cost you more money, even at 0% interest. Since you spend a lot of time in the vehicle, if there are specific features (seat comfort, ACC, etc) that will make your life more comfortable on the road, then a trade may be worth it. Otherwise, if it's strictly a financial decision, I'd advise waiting until the current truck is paid off.

jlong1984 · April 1, 2020

If you want a new truck and your job is secure, then get it. If your current truck has been reliable and you like it, why not keep it?

The value of your truck drops every day, it's not really worth any less at 101,000 miles than it was at 96,000.

hihosilverado · April 1, 2020

I agree with jlong1987. No reason not get it the new truck if you like it and can afford it. Do you give up any incentives to get the 0% rate?

TRKLGND · April 1, 2020

11 minutes ago, hihosilverado said:

I agree with jlong1987. No reason not get it the new truck if you like it and can afford it. Do you give up any incentives to get the 0% rate?

Most rebates are in lieu of 0%. Not all, but most. I just bought a 2020 LT Trail Boss @ 0% and still got $6k in incentives. I was upside down and my loan was at about 4.5%. Rolling over at 0% made sense. I plan on keeping this truck for a number of years.

JimCost2014 · April 1, 2020

Test drive one you think you might like, maybe you will come away liking yours better.

I would imagine when things return to as normal as can be, they will coming up with a lot of creative ways to move what is now becoming dead stock.

I am sure they will have a plan in place to delay the 21's hitting the lots as long as there is a surplus of 20's just sitting idle with so many people out of work.

TRKLGND · April 1, 2020

10 minutes ago, JimCost2014 said:

I am sure they will have a plan in place to delay the 21's hitting the lots as long as there is a surplus of 20's just sitting idle with so many people out of work.

They already do.

hihosilverado · April 1, 2020

50 minutes ago, JimCost2014 said:

I would imagine when things return to as normal as can be, they will coming up with a lot of creative ways to move what is now becoming dead stock.

I think this could go either way. Some parts of the country are going to be hit a lot harder than others and in those areas where people "get back to normal" in a month or so and want to buy vehicles inventory might be tight. Or.....it could go the other way.

TA_Fab · April 1, 2020

Thanks for the input guys. I’ve spent a lot of time in the newer trucks. If I don’t drive for work I’ll fly and rent a truck and honestly like my truck just as much as the new ones. Ran my last truck till it died I think I’ll see how this 2017 fairs. Anybody else close to 100k on a 16-18?

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TA_Fab · April 1, 2020

Thanks for the input guys. I’ve spent a lot of time in the newer trucks. If I don’t drive for work I’ll fly and rent a truck and honestly like my truck just as much as the new ones. Ran my last truck till it died I think I’ll see how this 2017 fairs. Anybody else close to 100k on a 16-18?

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superhighsierra · April 1, 2020

14 minutes ago, TA_Fab said:

Thanks for the input guys. I’ve spent a lot of time in the newer trucks. If I don’t drive for work I’ll fly and rent a truck and honestly like my truck just as much as the new ones. Ran my last truck till it died I think I’ll see how this 2017 fairs. Anybody else close to 100k on a 16-18?

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Yeah if you don't like the new ones more why would you get one? If you've already paid off 25 grand or so on your other one and have another 20 or so to pay off, chances are you aren't going to get a whole lot more than that on a trade and you still have to pay the loan off. Not sure what your equity is on the other one but I don't see any way I'd trade in a 3 year old vehicle with less than 100k on the clock only to pay another 50 grand for a new truck.

Ultimately the new trucks have nice materials on the interior, have a better navigation/hu, have better body lines, HUD (kind of a gimmick IMHO), etc but is any of that worth 50k? Not even close. I totaled my last vehicle, got 15k for it from the insurance co., and found a loaner on the lot with 2k miles fully loaded for 42k OTD. So I essentially went from a 15 year old vehicle to a fully loaded half ton for 27k which was a $300, 60month loan after I put down another 6k. Not a snowballs chance in hell I'd be making 600-700/month payments or give the dealership 50k out of my bank account. I know this is a truck forum, but anything over 25k that depreciates is a god awful investment. Lots of things you can do with that 600-700 bucks a month that are more enjoyable than having new technology in a truck IMO.

JimCost2014 · April 1, 2020

4 hours ago, hihosilverado said:

I think this could go either way. Some parts of the country are going to be hit a lot harder than others and in those areas where people "get back to normal" in a month or so and want to buy vehicles inventory might be tight. Or.....it could go the other way.

Yea, but if it does become tight on inventory, dealers will become less likely to trade amongst themselves, and if they do, they will want the most desirable vehicle in exchange for what the other dealer is looking to get for their customer.

KARNUT · April 1, 2020

For most of my life my trucks were paid by my business and deducted. Five years before I retired we decided to do a truck allowance. I drove an average of 50K miles a year. I got cheap and bought used. Nice ones but used. Pocketed the extra money. Nothing shocks you like being 1000 miles from home and breaking down. Even a simple thing like an AC failure. I went back to new. Retired with plenty of time on my hands, different. Working and it’s covered, drive newer.

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steve841 · April 1, 2020

Here's my story ...

I had a 19 Silverado with a 6.2L. Loved the truck, hated the mileage. The 84 month financing and 0 payments for 4 months got my attention.

I played with numbers and it worked out like this:

I bought a 20 Denali with 3L diesel. I owed $27K, trade value was $45K. I paid invoice and got the financing and took $20K refund and paid off my other car loan.

Ended up with a new vehicle (yes, long term even at 0%) and paid off my car. Dropped my monthly payment $400 and will have a title soon in hand for my car.

Very happy with the result of my numbers game.

TA_Fab · April 2, 2020

Yeah if you don't like the new ones more why would you get one? If you've already paid off 25 grand or so on your other one and have another 20 or so to pay off, chances are you aren't going to get a whole lot more than that on a trade and you still have to pay the loan off. Not sure what your equity is on the other one but I don't see any way I'd trade in a 3 year old vehicle with less than 100k on the clock only to pay another 50 grand for a new truck.

Ultimately the new trucks have nice materials on the interior, have a better navigation/hu, have better body lines, HUD (kind of a gimmick IMHO), etc but is any of that worth 50k? Not even close. I totaled my last vehicle, got 15k for it from the insurance co., and found a loaner on the lot with 2k miles fully loaded for 42k OTD. So I essentially went from a 15 year old vehicle to a fully loaded half ton for 27k which was a $300, 60month loan after I put down another 6k. Not a snowballs chance in hell I'd be making 600-700/month payments or give the dealership 50k out of my bank account. I know this is a truck forum, but anything over 25k that depreciates is a god awful investment. Lots of things you can do with that 600-700 bucks a month that are more enjoyable than having new technology in a truck IMO.

Yea my current truck was a dealer demo. Bought it with 3k miles on it for 32k which at the time was about 8k less than a new one. To clarify I was referring at 30-35k trucks not the fully loaded trucks as this is purely a tool for me and no need for any luxury items.

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