First Time Gm Buyer - A Few Questions

Ed Zeppeli · July 13, 2008

Hi all,

I've been lurking here for a few days now and appreciate all the information gleaned from various messages. Thanks.

I'm going in tomorrow for final negotiations on a 2008 Sierra Crew with 1SB package that includes 5.3, Power Seat, Locking Diff, Trailer Brake Control, Convenience Package, XM and HD Trailering Equipment in Stealth Gray Metallic.

I need a decent truck for towing a travel trailer for upcoming camping trips with the family and I'll be honest; a first choice of mine was an 05 or 06 Toyota Tundra. I've always like the look of the new Sierra and after reading some reviews and checking pricing I thought I'd dig into it a little more. Sticker on this truck is CAN $43,690 before taxes and I believe the dealer and I are on the same page at around the 35k mark. (I'll know for sure tomorrow). My plan is to lease the vehicle on a two to three year term. They are offering 0.5 % financing on leases up to 5 years.

My questions are;

- Do you have any input on if this is a decent price? I know things are different up here in Canada but any input would be appreciated.

- So far we've estimated a buy-out at lease end of around 24k. Can this be negotiated as part of the haggling process or is this number pretty much fixed based on the purchase price? Ideally I have a truck for 15 to 20 years in my mind but w/ the way gas prices have been and w/ the extreme depreciation of trucks off the lot I wanted the 'out' that a lease would provide. I just don't want to be stuck loving the truck at lease-end and having to pay a large sum to keep it.

- Are there any other options that I should give serious consideration to that you've found to be "must-haves"? I think I only want to add a spray-in bedliner and step rails to this package but any other input would be appreciated.

Oh and btw, this truck is not on the lot. They'll be bringing it in from the Vancouver area for me if things progress tomorrow.

Thanks in advance,

Warren

Nanaimo, BC

Outbacker · July 13, 2008

Hello, and since I am within 200 km of you, then I can appreciate where you are coming from WRT pricing. I just bought a 2008 Sierra SLE ext cab, and I got the dealership down to 35K from 40K. I bought the truck as opposed to lease as I wanted off the leasing cycle. The only problem with leasing is after the term, say the truck residual is 24K, they will say the truck is worth 20K. It will never be worth more then the residual. And to buy it out, the interest rate will be 8% (approx) and the payments will not be much different then you are paying now, plus they will sell you warranty etc. Then they will show you a new Sierra and if you switch over over and lease that one, it will be at 0.5% interest for 3 years, and they will encourage you to carry on with the new truck, and new lease. Hence the leasing cycle.

As far as the price, that is pretty good.

If you want to lower your residual at the end of the lease, increase your payments so you will owe less at the end of the term, therefore making the amount owing on the truck less so if you decided to buy it (finance it), then your amount being financed is less. Pay more with the lower interest rate.

As far as options, the list is endless. I had the bottom of the truck undercoated, and they threw in a bedliner. I did not want the spray in liner, but that is a personal choice.

Good luck on the negiotations, but beware of the leasing cycle. It can go on forever. I leased a few times, before I stepped off the merry go round and bought this one.

Cheers.

Ed Zeppeli · July 13, 2008

Thanks for the feedback Outbacker. Ya, that is the dilemna for me with the leasing which is why I was wondering about negotiating the buyout price before signing. I may be asking for the best of both worlds here....

Warren

C & A s Dad · July 14, 2008

Warren, what size and weight camper are you towing. Make sure the truck you buy has at least 3.73 gears and you may even want to consider 4.10s depending on what kind of driving you do.

Ed Zeppeli · July 14, 2008

Warren, what size and weight camper are you towing. Make sure the truck you buy has at least 3.73 gears and you may even want to consider 4.10s depending on what kind of driving you do.

Probably not much more than 20 or 22'. I estimate around 5500 lbs dry. Thanks for the gearing tip. I'll check into it. I believe the 3.73 were standard on this truck and the 4.10s standard on the 4.8 equipped Sierra.

Regards,

Warren

Griffin86 · July 14, 2008

Thats a pretty good price. Ask them about the Canadian Pricing, its 3000 bucks if you go to a different place to get your loan. If you pay it off quicker then thats money in the pocket.

Ed Zeppeli · July 14, 2008

Thats a pretty good price. Ask them about the Canadian Pricing, its 3000 bucks if you go to a different place to get your loan. If you pay it off quicker then thats money in the pocket.

I'm not sure I understand this post. Do you mean if I finance it elsewhere I'll save an additional 3k off the current price?

Griffin86 · July 14, 2008

Thats a pretty good price. Ask them about the Canadian Pricing, its 3000 bucks if you go to a different place to get your loan. If you pay it off quicker then thats money in the pocket.

I'm not sure I understand this post. Do you mean if I finance it elsewhere I'll save an additional 3k off the current price?

I know its confusing. But that is what I did, they gave me $3000 to get my loan from another place and called it Canadian Pricing.

Ed Zeppeli · July 14, 2008

LOL. No it makes sense. I guess 3k represents at least what it costs them to do their zero percent financing.

Thanks

Griffin86 · July 14, 2008

LOL. No it makes sense. I guess 3k represents at least what it costs them to do their zero percent financing.

Thanks

Yeah atleast if you go to another bank, you can pay off your loan quicker whereas the dealer only lets you pay your fixed payment.

KCXLT · July 14, 2008

- Do you have any input on if this is a decent price? I know things are different up here in Canada but any input would be appreciated.

My LTZ was $53805 Canadian. From Carcostcanada the Dealers cost was $47505, which is a mark-up of $6300. I'd guess you would be around $37000 - $38000 unless he is selling at a loss. That number doesn't include any incentives.

- So far we've estimated a buy-out at lease end of around 24k. Can this be negotiated as part of the haggling process or is this number pretty much fixed based on the purchase price? Ideally I have a truck for 15 to 20 years in my mind but w/ the way gas prices have been and w/ the extreme depreciation of trucks off the lot I wanted the 'out' that a lease would provide. I just don't want to be stuck loving the truck at lease-end and having to pay a large sum to keep it.

As far as I know this is not negotiable. I also think it is based on the MSRP and not on the selling price. They do change the % throughout the year though. If you go to GMCanada.com and build your truck on the final screen there will be the payment options on the left. If you click Change Payment Options it will show you what the buyout is at the end of the lease(Guaranteed Option to Purchase Price). A higher buyout would be better for you if there is any chance you will be handing back the truck at the end of the lease.

Super60 · July 14, 2008

Hi all,

I've been lurking here for a few days now and appreciate all the information gleaned from various messages. Thanks.

I'm going in tomorrow for final negotiations on a 2008 Sierra Crew with 1SB package that includes 5.3, Power Seat, Locking Diff, Trailer Brake Control, Convenience Package, XM and HD Trailering Equipment in Stealth Gray Metallic.

I need a decent truck for towing a travel trailer for upcoming camping trips with the family and I'll be honest; a first choice of mine was an 05 or 06 Toyota Tundra. I've always like the look of the new Sierra and after reading some reviews and checking pricing I thought I'd dig into it a little more. Sticker on this truck is CAN $43,690 before taxes and I believe the dealer and I are on the same page at around the 35k mark. (I'll know for sure tomorrow). My plan is to lease the vehicle on a two to three year term. They are offering 0.5 % financing on leases up to 5 years.

My questions are;

- Do you have any input on if this is a decent price? I know things are different up here in Canada but any input would be appreciated.

- So far we've estimated a buy-out at lease end of around 24k. Can this be negotiated as part of the haggling process or is this number pretty much fixed based on the purchase price? Ideally I have a truck for 15 to 20 years in my mind but w/ the way gas prices have been and w/ the extreme depreciation of trucks off the lot I wanted the 'out' that a lease would provide. I just don't want to be stuck loving the truck at lease-end and having to pay a large sum to keep it.

- Are there any other options that I should give serious consideration to that you've found to be "must-haves"? I think I only want to add a spray-in bedliner and step rails to this package but any other input would be appreciated.

Oh and btw, this truck is not on the lot. They'll be bringing it in from the Vancouver area for me if things progress tomorrow.

Thanks in advance,

Warren

Nanaimo, BC

Warren

If you really need to get rid of the truck before the end of the lease try Leasebusters. All of my past trucks were picked up from someone looking for a well equipt truck. Good luck with your new GMC , as a GM employee from Oshawa i just want to say thanks for going with the General.

Jettix2 · July 14, 2008

As the current lease-ee of an '06 Tundra 4WD Crew Cab V8, I'd also recommend going with a Sierra/Silverado. The 4.7 Tundra (even the '05/'06 with the 5 spd auto and VVTi) is a dog towing, and I'm only pulling 4500 lbs with mine. (1st gen Tundra is a nice truck, but is more of a truckette than a real truck when it comes to really hauling or towing). I can't wait until my lease is up to get into something a whole lot more powerful. In all honesty, I plan on going with the 6.2L / 6 Spd combo that's coming available here in a month or so on the Sierra SLT and Silverado LTZ (and has been in the Sierra Denali since '07).

Cheers!

Ben

Gray Ghost · July 14, 2008

Stealth Metallic Gray....It is a beautiful color....Go for it!!!

Ed Zeppeli · July 14, 2008

Metalhead; thanks for the tip and I hope somehow things work our for you in Oshawa. Would this truck have been built there?

Well, no deal for me today but I'm not giving up yet. My sales guy wasn't in today but the business manager was supposed to know what was going on. Apparently he didn't or there's been some miscommunication because he kept plugging in the numbers at about 3k higher than I was thinking.

I just can't wrap my head around how they can advertise the exact truck I want with the 4.8 vs. 5.3 for 298/month on a lease but when I try to make the deal work with my 2k upgrade to the 5.3l the number comes to $375/month.

...will keep hammering away at it to try to work out a deal.

Thanks for the insight and encouragement.

Warren