tibbitts wrote: Getting back to the original topic, I think the hard thing to understand is that if used truck prices are down 30%, new truck prices aren't down 30%. There is a fixed market for commercial trucks but beyond that there is not much new or used demand for trucks at the moment. Eventually, there will be fewer trucks produced, so possibly prices will rise considerably. Only people who need one will buy one, as opposed to all kinds of people who are buying trucks now. So perhaps a $30k truck today will cost $50k in a year or two. Perhaps from a dealer viewpoint, hanging onto an '08, even for several years, until that happens, is better than selling now for a loss. So it's hard to know what to do from a personal viewpoint, for the majority of us who don't actually need trucks.
Paul
This is exactly what I am saying only I do not expect to see an increase in the value of my truck I just think dealers are using this to their advantage a little too much. I mean I know I will have problems trading right now, but the dealer also needs to realize they are going to have the same problems moving their new vehicles. It has got to be give and take but with dealers now it is take and take for them. As for the dealer saying it is not the same or they are not giving me a rough 08 burb, well I am not trading in a rough 06. I have said it is not a pressing need. We have 3 kids now and only plan on one more in a few years. The truck seats 6 so it will be mine until the fenders fall off or the market changes!
2006 CHEVY 2500HD 6.0L 4.10 Ext Cab
Wife, 3 kids (boys... 6 month old, 5 year old, and 6 year old), and our dog RIGZ.
This is exactly what I am saying only I do not expect to see an increase in the value of my truck I just think dealers are using this to their advantage a little too much. I mean I know I will have problems trading right now, but the dealer also needs to realize they are going to have the same problems moving their new vehicles. It has got to be give and take but with dealers now it is take and take for them. As for the dealer saying it is not the same or they are not giving me a rough 08 burb, well I am not trading in a rough 06. I have said it is not a pressing need. We have 3 kids now and only plan on one more in a few years. The truck seats 6 so it will be mine until the fenders fall off or the market changes!
the problem is the dealer not only takes a loss on the new one to make you happy, they would also take a big loss on yours because they would never be able to sell it. The market for these used are so bad now that after it sits on the dealers used car lot and can't sell it they have to be able to cash out of it. That would be at the auction. Right now at the auctions they aren't even getting bids on used trucks or suv's. It's not that dealers are losing a little at the auctions they can't even get anyone to bid at all. If you don't want to lose money on yours don't trade it! You could sell it yourself but you will never get what you think it is worth. We have used trucks and suv's on our lot right now for thousands under kelly Blue book and NADA and still can't sell them. I think you should just wait till this whole oil mess blows over, it can't last forever.
2006 GMC Sierra SLT 2500HD crew cab 8.1 with 6 speed allison
2007 Keystone Laredo 32rs
Myself, Darling wife Lisa
Laura 16,Sara 13
2 Jack Russell's
Jack & Rusty
This is exactly what I am saying only I do not expect to see an increase in the value of my truck I just think dealers are using this to their advantage a little too much. I mean I know I will have problems trading right now, but the dealer also needs to realize they are going to have the same problems moving their new vehicles. It has got to be give and take but with dealers now it is take and take for them. As for the dealer saying it is not the same or they are not giving me a rough 08 burb, well I am not trading in a rough 06. I have said it is not a pressing need. We have 3 kids now and only plan on one more in a few years. The truck seats 6 so it will be mine until the fenders fall off or the market changes!
the problem is the dealer not only takes a loss on the new one to make you happy, they would also take a big loss on yours because they would never be able to sell it. The market for these used are so bad now that after it sits on the dealers used car lot and can't sell it they have to be able to cash out of it. That would be at the auction. Right now at the auctions they aren't even getting bids on used trucks or suv's. It's not that dealers are losing a little at the auctions they can't even get anyone to bid at all. If you don't want to lose money on yours don't trade it! You could sell it yourself but you will never get what you think it is worth. We have used trucks and suv's on our lot right now for thousands under kelly Blue book and NADA and still can't sell them. I think you should just wait till this whole oil mess blows over, it can't last forever.
The dealer wants it to be lose lose for me. They want ME to take the hit two times. I do not mind taking a hit on one end of it becasue I want something. But I am also taking something off the dealers hands. There is a high $ to be made on these new High priced BURBS. A lot more mark up than on a gas sipper. The dealer will still make money selling me the burb.
I am not sure of the amount but I am sure there is approx 20% profit at least on one of these vehicles.
This is exactly what I am saying only I do not expect to see an increase in the value of my truck I just think dealers are using this to their advantage a little too much. I mean I know I will have problems trading right now, but the dealer also needs to realize they are going to have the same problems moving their new vehicles. It has got to be give and take but with dealers now it is take and take for them. As for the dealer saying it is not the same or they are not giving me a rough 08 burb, well I am not trading in a rough 06. I have said it is not a pressing need. We have 3 kids now and only plan on one more in a few years. The truck seats 6 so it will be mine until the fenders fall off or the market changes!
the problem is the dealer not only takes a loss on the new one to make you happy, they would also take a big loss on yours because they would never be able to sell it. The market for these used are so bad now that after it sits on the dealers used car lot and can't sell it they have to be able to cash out of it. That would be at the auction. Right now at the auctions they aren't even getting bids on used trucks or suv's. It's not that dealers are losing a little at the auctions they can't even get anyone to bid at all. If you don't want to lose money on yours don't trade it! You could sell it yourself but you will never get what you think it is worth. We have used trucks and suv's on our lot right now for thousands under kelly Blue book and NADA and still can't sell them. I think you should just wait till this whole oil mess blows over, it can't last forever.
The dealer wants it to be lose lose for me. They want ME to take the hit two times. I do not mind taking a hit on one end of it becasue I want something. But I am also taking something off the dealers hands. There is a high $ to be made on these new High priced BURBS. A lot more mark up than on a gas sipper. The dealer will still make money selling me the burb.
I am not sure of the amount but I am sure there is approx 20% profit at least on one of these vehicles.
I am sure you don't believe it but there is hardly any profit in a new vehicle anymore, because the competition is so tight. I believe it is less than 2%, thier profit comes in the used car end of it. They make their money when they sell your trade in which isn't going to happen with yours. The mark ups are not like the RV market, depending on the price of the suburban there is probably $2,500 from sticker to invoice.
There's a little more mark-up than that. A 45K Burb could be discounted fairly easily to 40k,and more if there not selling good, plus all the current incentives at the time.
jello wrote: There's a little more mark-up than that. A 45K Burb could be discounted fairly easily to 40k,and more if there not selling good, plus all the current incentives at the time.
You are right I was just guessing from home but here are actual figures
MSRP $45,590
dealer invoice $42,557
supplier price $42,170
GM employee $40,360
total mark up $3,033 and you know no one ever pays sticker so just how much do you think they are making? If the dealer is trying to beat another dealer ( all the time ) that mark up is usually gone.
The burb I was looking at was loaded, leather, sunroof, 4 captains chairs, it had it all. It was priced I think at 55,000! I know there is a lot more room to work in this than a base model. Lots more profits for the dealer. And I do not think you are understanding me. Yes the dealer is taking a gas hog off of my hands but I too am taking a gas hog that he can not sell unless someone else like myself has a need. I am being raped coming and going. It has to be give and take and the dealers are not working that way. I think we can agree to disagree. You being a stealer and me being the consumer!
gm seller wrote:
jello wrote: There's a little more mark-up than that. A 45K Burb could be discounted fairly easily to 40k,and more if there not selling good, plus all the current incentives at the time.
You are right I was just guessing from home but here are actual figures
MSRP $45,590
dealer invoice $42,557
supplier price $42,170
GM employee $40,360
total mark up $3,033 and you know no one ever pays sticker so just how much do you think they are making? If the dealer is trying to beat another dealer ( all the time ) that mark up is usually gone.
"The mark ups are not like the RV market, depending on the price of the suburban there is probably $2,500 from sticker to invoice."
I believe you said sticker to invoice. All I'm saying is there are more profit than what you are claiming. The dealers also get an X amount of dollars just for filling out the paperwork.
"They make their money when they sell your trade in which isn't going to happen with yours."
What do they make if you don't have a trade? It certainly isn't nothing.
R&DScott wrote: Id like to buy a Ford but without even talking trade the local dealer wont budge. Here is his web page for F350s. Their special price is MSRP. When you go in to talk to them, thats the price they want. Hek wid em Ill keep driving the dumper.
Stock Number: 80573
Exterior Color: Black
MSRP: $56,305
Special Internet Price: $56,305
Stock Number: 80642
Exterior Color: Black
MSRP: $56,750
Special Internet Price: $56,750
Stock Number: 80626
Exterior Color: Black
MSRP: $55,830
Special Internet Price: $55,830
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