Need Help Buying a Silverado...

MrMav · November 21, 2005

I've had my heart set on buying a Silverado for a while now, but I am now serious about leasing one.

Today I walked into a Toyota dealer and they nearly had me signing papers for a 06 Tundra double cab Limited for $1000 down and $289 a month. I thought this was a good deal considering the sticker price was $39730. I told them I would think about it.

After some thought, I went to a Chevy dealer and they told me $1700 down and $399 a month for a 1500 Z71 3LT, which nearly drove me back to Toyota.

A side of me realizes that the Toyota is probably more practical to own (more reliable, better on gas, etc), but there is just something about driving a smaller (at least is feels that way) Japanese truck that does not feel right, no matter what the price. Also, I think ultimately, I should choose the truck I like better (SILVERADO) even if that means paying alittle more.

I'd apprecaite any thoughts. Anyone think I can get a better deal for that Silverado? Thanks

willfxp · November 21, 2005

Are you leasing for both of them? Have you compared the contract? Are you going through Toyota and/or GM for the financing?

$399 seems high for a lease price.

Ranger · November 21, 2005

Depends on what the price is. I'm paying 368 a month for my Colorado, which was about 27k (before all the stupid rebates had started). Got really screwed with the employee pricing. I'd probably be paying like 250 instead of 400 a month.

Wingnut · November 21, 2005

Just go buy a used one that's less than a year old that still has some warranty left on it. You'll own it outright in 5 years, and chances are, you can get your payments under $400 a month.

Shoot2Thrill · November 21, 2005

First tip I can offer is don't settle on anything that isn't EXACTLY what you want.

With that aside, I wouldn't go to one dealership for each manufacturer. I believe you can get more options and better prices if you spend the time shopping around.

Personally I wanted a new vehicle with a full warranty on my latest purchase. All my previous vehicles have been used, with my previous S10 being a dealer's demo truck. You will save buying a slightly used vehicle or dealer demo truck. My S10 still had part of the original warranty intact when I bought it.

It all depends on what you really want. Ask questions and don't settle for just anything. I was so picky that the dealer I bought my truck from special ordered my Silverado after I denied one they had me test drive. I walked away from it and four days later I got a call that a truck had came in that matched my specifications.

Your going to be paying on it, so you might as well get exactly what you want and not settle for less.

Slightly off topic below:

GM has the Red Tag event going on that brings prices near to where the Employee Discount costs were. I know somebody said they bought their Colorado before that pricing cut and had high monthly payments. I noticed during that time the fine print during the Employee Discount that Corvette and medium sized trucks were excluded from the deal. Just thought I would offer piece of mind.

99silveradoz71 · November 22, 2005

Your mind is right at least:) Get what's comfortable and what you would like. I speak from experience...being 6'5 and 230 at the time, buying my used 92 Jimmy probably wasn't too great an idea. It had somewhat high mileage for the money at the time, and it was small for me with buckets in it. Other than that, a great vehicle.

fossil · November 23, 2005

I wish I would have went with the Toyota Tundra. I think the build quality is far superior to GM Trucks. Only drawback with a Tundra is they cost a lot more than a GM, but you get what you pay for I guess.

DA808N · November 23, 2005

00'Silverado with 90k the guy I bought it from had his tranny done ,got it for 15,900 was that worth it,lifted 4in with 33's what you guys think

2004GMC1500CC · November 23, 2005

I've had my heart set on buying a Silverado for a while now, but I am now serious about leasing one.

Today I walked into a Toyota dealer and they nearly had me signing papers for a 06 Tundra double cab Limited for $1000 down and $289 a month. I thought this was a good deal considering the sticker price was $39730. I told them I would think about it.

After some thought, I went to a Chevy dealer and they told me $1700 down and $399 a month for a 1500 Z71 3LT, which nearly drove me back to Toyota.

A side of me realizes that the Toyota is probably more practical to own (more reliable, better on gas, etc), but there is just something about driving a smaller (at least is feels that way) Japanese truck that does not feel right, no matter what the price. Also, I think ultimately, I should choose the truck I like better (SILVERADO) even if that means paying alittle more.

I'd apprecaite any thoughts. Anyone think I can get a better deal for that Silverado? Thanks

<{POST_SNAPBACK}>

My truck has been stone reliable and has gotten as high as 22 mpg on the highway. Don't think they Toyota is any better at either reliability or actual mileage. If you plan on keeping either truck for a period of time (and I do), the parts for the Chevy will be MUCH cheaper than for the Toyota.

plainvanilla · November 23, 2005

I wish I would have went with the Toyota Tundra. I think the build quality is far superior to GM Trucks. Only drawback with a Tundra is they cost a lot more than a GM, but you get what you pay for I guess.

<{POST_SNAPBACK}>

JD Power does not even rank a Japanese truck in the top three.

But do what you want and send your money to a foriegn country.

I know.....some are assembled here in the US, but where do the corporate profits go?? Back to Japan.

LogixRat · November 23, 2005

First off, I think you need to understand the basics of leasing better. And I say this respectfully. The most likely reason the Toyota is cheaper is simply because of residual value, rebates and/or money factor. First off a few terms:

MSRP = Sticker price

Capatilized Cost = Price of vehicle after rebates, negotiations, trade-ins, etc.

Residual Value = Price the vehicle is worth after the lease is completed.

Depreciation Value = Difference between the cap cost and residual (the value upon which your payment is based).

Money Factor = Another term for interest rate.

Term = The amount of time you will pay

Acquisition Fee = The amount you pay to do the lease (can typically be rolled into the payment - if so, it affects your depreciation value).

To convert money factor to a percentage you multiply by 2400. To convert percentage rate to a money factory you divide by 2400. For instance, 7% is equal to a .0029166 money factor. Be careful because some dealers/finance managers try to trick their clients into believing the above referenced money factor is really equal to 2.9%. The simple rule here is the lower the better.

An honest dealer will share all the variables with you, and once you know them you should be able to calculate the payment yourself with pen, paper and a calculator. Be forewarned, dealers don't like smart buyers.

But essentially you only lease/pay for the depreciation of the vehicle. Like it or not some vehicles simply hold their value better. For instance the Toyota might hold 70% of it's value over 3 years, whereas a Chevy only holds 50%. That being the case, you could buy a more expensive Toyota and it cost less than a cheaper Chevy. Clear as mud?

Of course, on top of all this you have to contend with the fact different manufacturers will occassionally run specials that boost their residual values higher than normal. If the Toyota dealership did this, they might give you 80% value in 3 years instead of the normal 70% value. They do this to help move vehicles and increase sales. Just another trick.

Last but not least you have the term length. This is directly tied into residual value in the fact that you may get 70% residual in 3 years or 50% in 4 years or 75% in 2 years. Again the dealership will have this information, and there is a sweet spot. You may want a 2 year lease, but may do considerably better with a 3 year lease because of this.

As I said before, if you have all these facts you can figure out your payments at the dealership with pen, paper & a calculator only. Here is a link to the PDF version of the spreadsheet I made to take with me when looking. It shows the method to calculate lease payments. Feel free to use as you need:

http://members.cox.net/rckymtn/media/lease.pdf

PS: I might note that my spreadsheet does not include sales tax because I live in OK and we do not have to pay sales tax on vehicles. Instead we have an excise tax we pay when we title the vehicle.

LogixRat · November 23, 2005

Sorry about the back to back post, but the other one was growing long. In addition to understanding leases, you also need to figure out if they are right for you. Here are terms that are deal breakers for some people:

- Mileage restrictions (or you pay penalties at the end)

- You need to keep the vehicle at stock condition (or return prior to the end)

- No easy way out (unless you pay extra $$)

- Essentially you are renting the vehicle and will never own it

- Mandatory gap insurance & sometimes higher insurance limits in general

The upsides generally mean lower payments, newer vehicles more often, no inequity problems with trade-ins, etc.

Only you can decide what is right for you. As appealing as leasing is to me, I just have a problem with not actually "owning" the vehicle.

In regards to Toyota vs. Chevy/GMC, that is another personal choice. I personally think the foreign trucks look a little funny and don't want to own one. I am a big fan of buying what you want, afterall you only live once and there is no guarantee you get to live tomorrow! Of course, you have to live inside your means and having your dream vehicle but no money to buy gas or go anywhere would suck royally. Like everything else there is a sweet spot.

I am looking for a truck myself and I plan on buying an 04/05 with 20k or less miles and let someone else take the depreciation hit. I'm doing this mainly because I see the used car market is in a slump and I hope to maximize when/if the values ever increase. With the GM plants closing I think this "employee pricing" will end and they will start selling closer to sticker. I think others will follow behind to avoid the situation GM is currently facing and car values will go up, which mean used values will increase. Of course, that is just my opinion. I don't have a crystal ball with all the answers...trust me, if I did I'd never the stock market floor room...hehe.

Good luck w/ whatever you decide.