Would You Sell And Buy New?

[grimmysnr]

I have an 06 Sierra SLT ECLB and I purchased this thing fully loaded to the hilt for about $44,000. I have it financed through GMAC for 0% @ 60 months putting my payments around the $680 a month.

 

My payoff is roughly around $26,000.

 

With all snubs and financial mockery aside I strictly want to know if it would be a good idea to buy one of the new Sierra All-Terrains. I havnt really driven one yet but I have seen them around and sat in one at the dealership.

 

From what I understand these new trucks ride a lot better than the older 01-06 models. The more I see them around the more I like the look and feel of them. I will probably test drive a few models soon.

 

Basically, if I could land a lower payment and overall deal than what I have above then I am probably good to go. But I looked at the trade-in @ NADA and it states $23,000 which means ill take a loss. The new truck I would like would be leather, bose, All-Terrain package which would pretty much match what I have.

 

The only problems I have with my truck is the suspension seems kinda loose, I bought new BFG AT's and cant seem to get them balanced, and I replaced my shocks with Reflexes. I am military so I qualify for supplier pricing.

 

I am just looking for opinion in would you trade in a truck thats still in wonderful condition for these newer supposedly better trucks?

 

Sorry for the long post, hopefully you guys can figure out what I am looking for. lol

[Nick The Great]

Well the 2 obvious variables are your new truck cost and interest rate.

 

I am assuming that you will get 23,000 for your truck and loan length will be 60 months.

 

If your rate is 0, you simply take 60 * $680 /month = $40800.

 

Take into account your $23k and you're good for $63800.

 

Say your rate is even 5%, your $680 gives you $36000, plus 23 = $59000 (I have a spreadsheet with this equation)

 

 

Of course, you probably will not get $23k for yours and you probably wouldn't mind a smaller monthly payment. But to answer your original question, you could probably get into a new truck.

 

**I'm no economist so anyone better suited to me can feel free to correct me.

[Neutron]

That doesn't add up. He's $3k upside down, so if he found a truck for $35k, he's have to finance $38k (assuming no rebates which I know isn't true).

[silverad03]

I would stay with the one you have now. Unless you're just one of those guys that just HAS to have a new truck purchased from a dealer, than I'd say you're better off where you are. The new trucks may be nice, but it isn't like GM reinvented the truck with the new models - they may ride different, but they'll have their own problems as well.

 

Considering that you're upside down in the one you have now, which is common anytime you buy a new vehicle (regardless of what the economy is doing), why would you want to go buy another one and take that loss again? I mean, anytime you buy a new vehicle you typically lose several grand as soon as you sign the deal. You bought a brand new truck recently and you haven't even got enough good out of it to get past the point where you're not upside down. It doesn't make sense to me to buy another brand new one and then lose another several thousand as soon as you drive it off the lot too. To me, you would be better off staying with the truck you have and getting some good out of it to ease the pain of taking a valuation hit on buying new, not go out and create more pain.

 

For example, you bought an 06 and two years later you're upside down $3,000 in it. If you go buy another one, you'll have to pay $3,000 extra on the new one to get rid of the gap on this one, and you're still likely going to end up in an upside down situation and extend the period of time where you owe more than your truck is worth for another few years over where you're at now. Now, if you are in a cash crunch and you just can't afford the truck you have now, that would make sense to me, assuming you drive the wheels off the next one.

 

For me, the new trucks aren't a big enough revolution in truck design to warrant throwing away more money on a new deal. But then again, I believe that there are very few good reasons to ever buy a brand new vehicle off the lot that aren't purely emotional (e.g. just gotta have that new car smell) just because of the valuation drop as soon as the deal is done - if the value drops as soon as you sign the deal, then you paid too much.

[dannynoonan]

There is a world of difference between the 800 and 900 series. You really need to get out there and drive one. I bought mine several months ago and was able to get 7500 off a 35,755 sticker. I would imagine you could do even better now.

 

The choice for me was a 2007 with 17,000 miles for 28,990, or a 2008 for 28,500. I can assure you, it wasn't an emotional decision for me.

[Nick The Great]

That doesn't add up. He's $3k upside down, so if he found a truck for $35k, he's have to finance $38k (assuming no rebates which I know isn't true).

 

 

Right, right. Now I'm even more confused

 

So he'd could only get 23 for his old truck, but he still owes 26??

 

If that's the case, my numbers are all FUBAR.

[silverad03]

There is a world of difference between the 800 and 900 series. You really need to get out there and drive one. I bought mine several months ago and was able to get 7500 off a 35,755 sticker. I would imagine you could do even better now.

How much you get off sticker isn't as relevant as how much you're vehicle is worth in relation to how much you paid. Where are you at on your truck - are you upside down as well? In grimmys case, he needs to decide whether he can get a good enough deal that he'll be less upside down in his next one than he is on this one, which will be hard to accomplish since he has to add $3,000 to whatever deal he gets on a new one to cover the loss on his current one.

 

To me, the argument that the new trucks are much better isn't really valid (except for an emotional appeal) since he hasn't indicate that there's really anything wrong with the truck he has now, other than he thinks a new one would ride a little better.

[slomo007]

Without even crunching numbers I can almost guarantee you that financially speaking you would be worse off by trading in a 2 year old truck.

[dannynoonan]

How much you get off sticker isn't as relevant as how much you're vehicle is worth in relation to how much you paid. Yeah, I'm aware of that. I just thought it might be helpful to share what a truck is actually leaving the lot for. You know, since he is crunching the numbers and thinking about buying one. Like I said, it was cheaper to buy new than used in my area. Where are you at on your truck - are you upside down as well? Well I doubt it. I put some money down, have a very low interest rate, and bought new for less than I could get one used. Not that it's really any of your business how I sit financially. In grimmys case, he needs to decide whether he can get a good enough deal which again is the whole point of me telling what kind of deals are out there that he'll be less upside down in his next one than he is on this one, which will be hard to accomplish since he has to add $3,000 to whatever deal he gets on a new one to cover the loss on his current one. So if he grabs a new one, with a lower payment, and is still three thousand upside down, wouldn't that be a good idea?

 

To me, the argument that the new trucks are much better isn't really valid (except for an emotional appeal) I don't really get where you are going with this. Why isn't better, better? since he hasn't indicate that there's really anything wrong with the truck he has now, other than he thinks a new one would ride a little better.

[grimmysnr]

Well you guys have pretty much concurred with the numbers part I was going at. For a 4wd version (which in Alaska is a must) and a SLT model all-terrain thats easily 38k for the vehicle and about 36k after supplier pricing. Then whatever trade-in they decide to give me which never really works out to what NADA or KBB gives you. Well KBB actually lists trade in on this at 15k. So either way the numbers just are a little much for now.

 

I just really wanted to hear whether you guys thought upgrading/changing to these newer GMT900's would be worth all that hassle. This truck I have now is actually the first and very well may be the last brand spankin new off the lot vehicle I will ever own (atleast at this part of my life). But after reading online about the change in suspension, larger tires, and overall more solid of a truck these new ones claim to be I just had to know. I am happy with my truck, I mean I could probably do some TLC repairs but overall it has its serving its purpose and then some.

 

The only difference will be where I go when I rotate back to the lower 48. Honestly, an ECLB pickup is a pain in the ass to drive around in downtown anchorage sometimes, so I can imagine in some city somewhere having a vehicle like that wouldnt be that practical. Plus I use the truck for loading up the quad, wifes dirtbike, all the camping gear, then all kinds of other junk. That 8 foot bed has definitely come in handy its just a nightmare to park lol. But I am sold on pickups, I love the ride and utility they provide. Plus getting rear ended and having my 2 inch ball hitch go through the guys radiator totaling their vehicle because they werent paying attention gives me a slight bit of satisfaction.

[Zembonez]

You are making the right choice to hold off right now. Given the current glut of used trucks on the market, (thank oil prices) local dealers here would be hard pressed to offer 10 grand trade in on the th truck you have now. I buy about 200 vehicles a month and work the wholesale market daily on vehicles and have seen some crazy low priced trucks and Suburbans. Now is a great time to BUY a used truck.

[MS3DALE]

Now is a great time to BUY a used truck.

 

Sure is...It just isn't a great time to "TRADE-IN" or "SELL" a used truck

[Zembonez]

Now is a great time to BUY a used truck.

 

Sure is...It just isn't a great time to "TRADE-IN" or "SELL" a used truck

 

No Sir! Better keep what you have until all of this idiotic selling frenzy over MPG settles down. One dealer I deal with says people are trading in Suburbans, losing 10 grand in the deal, just to buy something that gets 28MPG instead of 17... go figure out how long the break even is on THAT deal! If they drove 12000 miles a year, they would save 1100 dollars per year on gas... Its gonna take a LONG time to cover that lost 10 grand huh? (over 9 years)

 

It just goes to show that PEOPLE (not turkeys) are the dumbest thing on the planet.

 

RARELY does it make any sense (certainly not financial sense) to trade for fuel economy.

[dannynoonan]

OH MY GOD! Killer bees, great white attacks, bird flu epidemic, snipers! How will we save the children?

[silverad03]

How much you get off sticker isn't as relevant as how much you're vehicle is worth in relation to how much you paid. Yeah, I'm aware of that. I just thought it might be helpful to share what a truck is actually leaving the lot for. You know, since he is crunching the numbers and thinking about buying one. Like I said, it was cheaper to buy new than used in my area.

 

I said that because I think often times people get caught up in the emotion of buying a new vehicle and they evaluate the deal based upon how much less than sticker they're paying without considering what the true value is of the vehicle they're buying, or whether they're getting a realistic value for their trade-in. I didn't mean to imply that that's what happened in your case - it's just a general observation of mine.

 

Where are you at on your truck - are you upside down as well? Well I doubt it. I put some money down, have a very low interest rate, and bought new for less than I could get one used. Not that it's really any of your business how I sit financially.

 

I wasn't really asking you for personal financial information, it was just a rhetorical question. I was just trying to make my point that buying a new truck usually means you're going to be upside down for a while. If your not upside down in yours, that's great man. I don't think that is the case with many new vehicle owners. I think a lot of people waste a big chunk of money on buying new because they have a stigma about driving something that was owned by someone else or they have to have that brand new car smell. I've bought trucks in the past that were only a year or two old and previously owned by someone that trades off every year just so they can have the latest model design - these trucks were ever bit as good as a new one when I bought them (even had the new car smell), they just had a few grand on the odometer and thousands knocked off their original sticker price - which brought the price in line with what they were truly worth in the market, and I didn't have to experience the upside down situation.[/color]

 

In grimmys case, he needs to decide whether he can get a good enough deal which again is the whole point of me telling what kind of deals are out there that he'll be less upside down in his next one than he is on this one, which will be hard to accomplish since he has to add $3,000 to whatever deal he gets on a new one to cover the loss on his current one. So if he grabs a new one, with a lower payment, and is still three thousand upside down, wouldn't that be a good idea?

 

Not necessarily, because he may be more than $3,000 upside down in total after buying his new one. If he buys the new one, there's a good chance he'll be upside down on that one as soon as he drives it off the lot - not even considering the $3,000 he has to tack on from his current situation. So, effectively, he'd be upside down on two vehicles rolled into one big note and only have one truck to show for it - which would take a long time to get out from under. My point was that he needs to make sure that the savings in his monthly payments is big enough to justify the huge gap he's going to have when he drives the new one away. I don't think it could be, unless he really needs that cash freed up each month.[/color]

 

To me, the argument that the new trucks are much better isn't really valid (except for an emotional appeal) I don't really get where you are going with this. Why isn't better, better?

 

My point is that while the new trucks may be better, going further upside down in another new vehicle just for the sake of getting something better isn't really practical, especially when he doesn't have any strong complaints about his current one. If he was using the heck out of his current truck and it wasn't holding up and he needed something better, that would make more sense to me, but he didn't give any indication that there was something wrong with his current truck. I'm just saying it's a high price to pay just so he can say his new truck is 'better' than the one he had before.

 

since he hasn't indicate that there's really anything wrong with the truck he has now, other than he thinks a new one would ride a little better.