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They will give me 8 Grand.....

F

FF_Opie

Fire Putr Outr
Messages
290
Reaction score
1
Location
Iowa
Soooooo,
I have been contemplating getting a new truck while all the dealers are hurting as bad as they are...... I called Copple GMC in Louisville Nebraska (Whom I bought an 06 CCSB LBZ in fall of 2006) and asked what they could do to get me into an LMM ECSB 4x4. Nothing fancy, Cloth interior is fine..... I have to trade a:
2001 F350 ECSB 4x4 PSD with 92,800 miles. As the title states, they are willing to give me 8 grand trade :mad2:. It's not a big deal, I know the game and pretty much expected it. Don't you think if my truck is worth half thiers should be too? BTW, they wanted 29K to boot.

Every new truck I have ever purchased (4 in the past 6 years) I have always gotten at least 20% off the sticker.:lol: I just think it's funny how they are playing the economy card. Yes, they are taking the normal 20% off, but now my truck is worth half of what it should be! I love it.

Tell me if I am out of line guys....

I completely understand that a dealer needs to make a few bucks BUT, thier truck should be around 36-37,000 w/o any trade. I figure mine should be at least in the 14k range. They they can clean it up and make a couple grand on it and I could get into a new one for 22,000ish. I guess it wasn't meant to be.

Sorry for the novel, but if I can't bitch here where can I?
Thanks for your time!!:Chevy_anim:
 
I don't know I see you and the dealers point of view but it does seem low I don't know if I would give 14 for a 92,XXX mile powerchoke but I would give 10-12 fot it atleast. And they are high on the price is it 08 or 09?
 
When GM is selling the trucks at employee price with big $$$$$ rebates the dealers make nothing on a new truck.

When that happens the trade in values take a huge hit because new ones are some heavily discounted driving used prices down with them.

Add the fact that used finance rates can be 9-12% compared to 0-4% on a new one and they run from used vehicles.

Also a higher mileage 7 year old truck out of warranty is not something a lot of guys want IMHO with the cost of fixing them.

Don't take it the wrong way, just telling you how I look at it from a neutral position, not being the seller or the dealer.

Good Luck,

Tony
 
No offense! Like I said, I knew this would happen. The thing I see around here anyway is the 7.3 is still a well-wanted truck because of some of the engine issues that Ford has had with the newer engines. Woodhouse Ford (which I am told is one of the biggest Ford dealers in the nation) sells trucks like mine before they even get the listed after a trade in. They still have them listed for 16-18k. Problem there is they are a Ford dealer and I don't want to trade on a new Ford. I want a Dmax!
 
Ridge_Runner_Diesel said:
When GM is selling the trucks at employee price with big $$$$$ rebates the dealers make nothing on a new truck.

I beg to differ with you here. When GM agrees for a dealer to sell a truck for the Employee Price, GM will pay the dealer 5% of the STICKER price as profit. That's the way it's been for over 40 years. So in reality many dealer can make a bigger profit from a sale to a GM employee than they can from selling to the general public, after all the price haggling.

When that happens the trade in values take a huge hit because new ones are some heavily discounted driving used prices down with them.

Any profit, after paying for reconditioning, detailing and salesman's commission, from selling the used truck is money in their pocket.

Add the fact that used finance rates can be 9-12% compared to 0-4% on a new one and they run from used vehicles.

The problem now a days is that trucks are not selling, especially USED trucks. Therefore, dealers will Low Ball (typically low auction price) the price they pay for the trade-ins they take in, because they don't know if/when they will be able to sell it and recover their investment.

Also a higher mileage 7 year old truck out of warranty is not something a lot of guys want IMHO with the cost of fixing them.

Don't take it the wrong way, just telling you how I look at it from a neutral position, not being the seller or the dealer.

Good Luck,

Tony
Click to expand...
If you can at all help it, try to sell your old truck to a private party. You will them be in much better position to negotiate with the dealer a better deal on the new truck.

You may want to start with Kelly Blue Book or the NADA Used Gide to get an idea on a good asking price for your truck.
 
So 5% of a truck with a sticker of $50K is $2500, but if they sell at invoice its not at least a $2500 profit ???

Why not just sell at GM Employee if its such a great deal for the dealer ???

You are correct that nobody wants a used truck so they won't pay a lot for them because even at auction not many dealers will bid on them.
 
Ridge_Runner_Diesel said:
So 5% of a truck with a sticker of $50K is $2500, but if they sell at invoice its not at least a $2500 profit ???

Why not just sell at GM Employee if its such a great deal for the dealer ???

You are correct that nobody wants a used truck so they won't pay a lot for them because even at auction not many dealers will bid on them.
Click to expand...
The reason they can't sell at GM Employee discount to everyone unless GM agrees, is that GM basically reduces the dealer's net cost by 5%. Employee discount is 3% UNDER Invoice. Dealer's cost for an Employee sale is 5% under that (Subsidized by GM). If the dealer sells to everyone at the employee price without GM's approval, he will be selling for a lot less than his actual cost.
 
I guess I have a problem believing a dealer when they tell me it is below thier cost. They have to pay the bills somehow and it isn't by losing money.
 
RayMich said:
The reason they can't sell at GM Employee discount to everyone unless GM agrees, is that GM basically reduces the dealer's net cost by 5%. Employee discount is 3% UNDER Invoice. Dealer's cost for an Employee sale is 5% under that (Subsidized by GM). If the dealer sells to everyone at the employee price without GM's approval, he will be selling for a lot less than his actual cost.
Click to expand...

So what about the holdback, regional incentives, etc.

Beleive me, they cry and cry and cry and still make money...........:banghead:

When they tell me that they are not making anything on the deal I tell them I like to work for free too............:ciappa:
 
It "looks" like I am going to be in an 06' CCSB LBZ on Monday. I will get pics if and/or when it happens...
 
Ridge_Runner_Diesel said:
So what about the holdback, regional incentives, etc.

Beleive me, they cry and cry and cry and still make money...........:banghead:

When they tell me that they are not making anything on the deal I tell them I like to work for free too............:ciappa:
Click to expand...
Well, I really don't know what your dealers have been telling you. A dealer COULD actually sell a particular vehicle at a loss and make it up elsewhere in his business, but NOT on a GM subsidized Employee Discount sale.

All I know is that having bought over 30 GM vehicles at the GM employee price for myself and my immediate family, over a bunch of years, I know what my price was and what the dealer's actual cost was. (One advantage with this benefit is that there is NO haggling over price) I also know that unless GM kicks in the extra subsidy for the employee sale, the dealer's cost would've been MORE than the GM employee prices I paid. That includes holdbacks and rebates. Now, this does not preclude a dealer from giving a GM employee additional incentives, like warranties, service contracts, etc., as long as those same incentives are also available and given to the general public.

I also know that GM audits those employee sales, so if it is an "official" Employee sale, the price is pretty much set in stone by GM (This price can be found in the official dealer invoice for that vehicle). If a dealer charges more or gives the employee additional incentives that are NOT available to the general public, the dealer can get in hot water.

A dealer has much more freedom and COULD actually sell a vehicle at a "loss" to the General Public; he could even give it away if he wants to, as long as it is NOT a GM subsidized Employee Discount sale. the reason they are so strict with employee discount sales is because they don't want any conflict of interest or extra preferential treatment arising from such sale.

Hope this helps. :D
 
RayMich said:
Well, I really don't know what your dealers have been telling you. A dealer COULD actually sell a particular vehicle at a loss and make it up elsewhere in his business, but NOT on a GM subsidized Employee Discount sale.

All I know is that having bought over 30 GM vehicles at the GM employee price for myself and my immediate family, over a bunch of years, I know what my price was and what the dealer's actual cost was. (One advantage with this benefit is that there is NO haggling over price) I also know that unless GM kicks in the extra subsidy for the employee sale, the dealer's cost would've been MORE than the GM employee prices I paid. That includes holdbacks and rebates. Now, this does not preclude a dealer from giving a GM employee additional incentives, like warranties, service contracts, etc., as long as those same incentives are also available and given to the general public.

I also know that GM audits those employee sales, so if it is an "official" Employee sale, the price is pretty much set in stone by GM (This price can be found in the official dealer invoice for that vehicle). If a dealer charges more or gives the employee additional incentives that are NOT available to the general public, the dealer can get in hot water.

A dealer has much more freedom and COULD actually sell a vehicle at a "loss" to the General Public; he could even give it away if he wants to, as long as it is NOT a GM subsidized Employee Discount sale. the reason they are so strict with employee discount sales is because they don't want any conflict of interest or extra preferential treatment arising from such sale.

Hope this helps. :D
Click to expand...
great point and well said,if they are a good standing dealer,they will make up the loss in insentives from GM...if not they will not make the deal-
 
Ridge_Runner_Diesel said:
So what about the holdback, regional incentives, etc.

Beleive me, they cry and cry and cry and still make money...........:banghead:

When they tell me that they are not making anything on the deal I tell them I like to work for free too............:ciappa:
Click to expand...

:iagree:

They can show you what they were invoiced all they want. What they won't show you is what they're kicked back at the end of the period. Hell, we do that all the time with our distributors and play games with their cost. They get a year-end incentive and contractor rebates which negates invoice pricing anyhow.

And to the OP: Don't feel bad... I was offered $15k in trade on my 06 a few months back. They gave me some line about having to try to sell it at auction. I told the appraiser "BS- that truck won't go to acution... it'll be on your lot tomorrow with a $25,999 sticker" He actually agreed with me.
 
Well, I got her done! picked up an '06 CCSB LBZ with 13,000 miles. Right now it is grandpa'ified. It has stock 245 tires and aluminum Luverne running boards so I will get some pics when it looks a little better! No offense to anyone that has stock tires and aluminum running boards :)
 
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