Is Buying New Worth It?

[TheBellman]

So I'm heading up to the dealer to get the instrument cluster checked here in a bit. I'm seriously debating trading it in. Don't worry, I'm not doing it this minute. But, I'm going to look while I'm there. So the question is....is it really worth it to buy new? The price just seems so much higher to me. I bought this one two years ago in 07. It was an '04 Extended Cab Z-71 LT with only 16K on it and I paid $20K. About the only thing I really want to upgrade in a new pickup is to go to a crew cab vs the extended. After researching some online it looks like I'll be looking at around $40K for a new one. I never was really good at my take-a-ways and gozintas but that's like twice as much. It really makes it hard to pull the trigger.

 

Any suggestions / advice???

[bubba33]

You need to look around. I would say your looking around 25,000 to 30,000 range depending on what you want. You will be able to get alot better deal now than you did on the truck you have. If you want to trade it in there not giving anything for trade in.

[bill190]

Now is the time to buy. Lots of good deals out there! (A buyer's market as they say...)

[pm26]

Now is the time to buy. Lots of good deals out there! (A buyer's market as they say...)

 

No, this is not good time to buy. Here is why. The 2008 trucks are almost all sold out, except for remaining high priced diesels and work equipment trucks. The reabates and discounts on 2009's are lousy at this time. Wait about 2-3 months and you will see the same discounts on 2009's as they had on 2008's. That is the only way they will move those vehicles.

[TheBellman]

So I walked around the showroom for about 15mins. And when I say showroom I mean the Silverado and Traverse they had setting there. There were three salespeople sitting around BSing and not one of them even said good morning to me. And they wonder why they can't sell anything. I definitely will not be buying from that particular dealer.

 

I can't imagine it would only be $25-$30K. I went online and built a 2008 in the same pickup as I have only upgrading to a crew cab and 6.0L which only added a grand and it totaled $41,880

[piscator]

I've don't regret purchasing new vehicles, but from a strictly economic point, it's never been a better financial decision.

 

If you love the 'new car smell' or dislike driving a vehicle smeared with 'previous owner cooties' -- buy a new vehicle :-)

 

If you consider stuff like the 'time value of money' on the equity 'hiding' in the new truck, it's virtually impossible to make an economic argument in favor of the new vehicle.

 

If you're financing and paying interest on 'truck equity' that could be earning interest -- there's no economic sense to the new vehicle, whatsoever.

 

Even for a business taking depreciation and deducting the interest expense, 'new vs used' is probably no more than 'a wash'. The cash tied up in the new truck is capital taken away from the company's earning capacity.

 

Still, this may be 'picking too many nits'! Paying a premium for a new truck isn't going to kill most people, but it won't be 'a better investment'.

 

Personally, I think 'liking the vehicle' is the most important thing. A used vehicle is a better financial option, but sometimes it's worth paying a premium to get what you want.

 

Lastly you can't 'discount' the convenience factor of buying new. The 'hassle and worry' over a used car is also a very real cost for many people. Most people willingly trade dollars for the 'security' of owning a new vehicle.

 

That might not be a compelling factor for the technically minded folks on this board, but it's a legitimate argument and a sensible compromise for many people.

 

piscator

[Bowtie2Sierra]

I've don't regret purchasing new vehicles, but from a strictly economic point, it's never been a better financial decision.

 

If you love the 'new car smell' or dislike driving a vehicle smeared with 'previous owner cooties' -- buy a new vehicle :-)

 

If you consider stuff like the 'time value of money' on the equity 'hiding' in the new truck, it's virtually impossible to make an economic argument in favor of the new vehicle.

 

If you're financing and paying interest on 'truck equity' that could be earning interest -- there's no economic sense to the new vehicle, whatsoever.

 

Even for a business taking depreciation and deducting the interest expense, 'new vs used' is probably no more than 'a wash'. The cash tied up in the new truck is capital taken away from the company's earning capacity.

 

Still, this may be 'picking too many nits'! Paying a premium for a new truck isn't going to kill most people, but it won't be 'a better investment'.

 

Personally, I think 'liking the vehicle' is the most important thing. A used vehicle is a better financial option, but sometimes it's worth paying a premium to get what you want.

 

Lastly you can't 'discount' the convenience factor of buying new. The 'hassle and worry' over a used car is also a very real cost for many people. Most people willingly trade dollars for the 'security' of owning a new vehicle.

 

That might not be a compelling factor for the technically minded folks on this board, but it's a legitimate argument and a sensible compromise for many people.

 

piscator

 

+1

[Reverendbiker]

I'm normally an advocate for buying a slightly used vehicle and letting the previous owner eat the depreciation. In the current economic times, however, the rules have changed. I was due to sell my old Nissan Frontier next year, but last Fall saw some of the most incredible bargains on new trucks in my lifetime. Dodge and Ford were introducing newly-designed 2009 models so they had to clear out the 2008 inventory. High gas prices were killing truck sales, and credit problems were taking people out of the market. Dealers in my area were BEGGING people to buy their 2008's. I looked at well-optioned low mileage year-old Silverado's and most were listed for $22-$25k. I found a nice 2008 on the lot that I really liked--list price $33k--and offered $20k cash. After much moaning the dealer took the deal, and I had a new truck with 0 miles and a full warranty for less than the asking price of many used units.

 

There are very few 2008's left on the lots, but there are already signs that the dealers will need to offer more deep discounts to move the 2009's. My local Dodge dealer is selling the new Ram 1500's for $12k off list, so Chevy and Ford will need to sharpen their pencils to compete. Normally a lightly used vehicle is a better financial decision, but don't write off the new models until you shop around.

[dietz4ibanez]

So I walked around the showroom for about 15mins. And when I say showroom I mean the Silverado and Traverse they had setting there. There were three salespeople sitting around BSing and not one of them even said good morning to me. And they wonder why they can't sell anything. I definitely will not be buying from that particular dealer.

 

I can't imagine it would only be $25-$30K. I went online and built a 2008 in the same pickup as I have only upgrading to a crew cab and 6.0L which only added a grand and it totaled $41,880

 

 

When you build the truck online you are building on the fact that the exact same truck will not be on the lot.. So they will have to order it and you will pay full price if you have to order it..

 

As opposed to a truck that has been sitting on the lot since late 07 to early 08 it will have rebates and incentives..

 

I saw an advertisment for a dealer around here and they were selling a 08 Chevy Silverado CC 5.3 1/2 ton New in the Box for 22,950 I think it was packaged at LT... It was 2wd...

[VMax2007]

When you build the truck online you are building on the fact that the exact same truck will not be on the lot.. So they will have to order it and you will pay full price if you have to order it..

As opposed to a truck that has been sitting on the lot since late 07 to early 08 it will have rebates and incentives..

 

I saw an advertisment for a dealer around here and they were selling a 08 Chevy Silverado CC 5.3 1/2 ton New in the Box for 22,950 I think it was packaged at LT... It was 2wd...

 

O'Rly?

 

I factory ordered my truck and I paid invoice, which was 4K under MSRP. I negotiated invoice pricing before I even sat down with the Sales Manager to build it. I then got an additional $2K off (2 $1K rebates) and 0% for 36 months. So, I ended up getting $6K off MSRP on my factory ordered truck. And this was in Jan of 2007, when the GMT900's were just arriving and the truck market hadn't tanked yet.

 

[bubba33]

When you build the truck online you are building on the fact that the exact same truck will not be on the lot.. So they will have to order it and you will pay full price if you have to order it..

As opposed to a truck that has been sitting on the lot since late 07 to early 08 it will have rebates and incentives..

 

I saw an advertisment for a dealer around here and they were selling a 08 Chevy Silverado CC 5.3 1/2 ton New in the Box for 22,950 I think it was packaged at LT... It was 2wd...

 

O'Rly?

 

I factory ordered my truck and I paid invoice, which was 4K under MSRP. I negotiated invoice pricing before I even sat down with the Sales Manager to build it. I then got an additional $2K off (2 $1K rebates) and 0% for 36 months. So, I ended up getting $6K off MSRP on my factory ordered truck. And this was in Jan of 2007, when the GMT900's were just arriving and the truck market hadn't tanked yet.

 

 

Did you get the noise figured out the other day?

[VMax2007]

When you build the truck online you are building on the fact that the exact same truck will not be on the lot.. So they will have to order it and you will pay full price if you have to order it..

As opposed to a truck that has been sitting on the lot since late 07 to early 08 it will have rebates and incentives..

 

I saw an advertisment for a dealer around here and they were selling a 08 Chevy Silverado CC 5.3 1/2 ton New in the Box for 22,950 I think it was packaged at LT... It was 2wd...

 

O'Rly?

 

I factory ordered my truck and I paid invoice, which was 4K under MSRP. I negotiated invoice pricing before I even sat down with the Sales Manager to build it. I then got an additional $2K off (2 $1K rebates) and 0% for 36 months. So, I ended up getting $6K off MSRP on my factory ordered truck. And this was in Jan of 2007, when the GMT900's were just arriving and the truck market hadn't tanked yet.

 

 

Did you get the noise figured out the other day?

 

 

Yep, I think so. Final verdict is still out, but so far, it is quiet. I'll know for sure after a few days of driving. I gave an update in my thread about it. They remounted and isolated the radiator overflow reservoir.

[MarkD]

One of my subs has this attitude toward buying new...

 

A.) I am comfortable with a $500/month truck payment. I can make that payment on a new truck every two years and therefore spend 6 years in a truck that is almost new.

 

or...

 

B.) I can make $500/month payments on a single truck for 6 years and pay it off.

 

Option A.) 6-years in a "new" truck and paid down to break even on my 3rd truck at the end of the 6 years

Option B.) 6-years in the same truck paid off at the end of the 6 years, so I own a truck with 175,000-200,000 miles

 

I don't necessarily agree, but I do see his point.

[Zembonez]

Nice Avatar Jeff.

 

But you should KNOW you can't stop a clown.

 

Hey Bellman... that is one bad ass looking red truck in your sig. Details?

[VMax2007]

Nice Avatar Jeff.

 

But you should KNOW you can't stop a clown.

 

Hey Bellman... that is one bad ass looking red truck in your sig. Details?

 

I thought you left again for another week?