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GMC Yukon Denali, GMC Yukon, SUV
#163 of 238 Re: Yukon Denali AWD purchase
Dec 13, 2008 (2:39 am)
Thanks to everyone on these boards. New poster, long time lurker.
I have just purchased my third car in the past three years and each time the Edmunds forums (especially the Prices Paid threads) gave me the info and confidence to save a ton.
After weeks of watching the boards, reading the ads and walking the lots late at night, and taking inventory of the model I was interested in (hint: the same cars sat there week after week) I just purchased a loaded 2008 Yukon Denali AWD in the San Francisco Bay Area.
Options: Sun/Ent/Destination (nav, rear cam, DVD player, sunroof); 20" wheels; power retractable steps; heated steering wheel; 2nd row leather bench seat.
Odometer: 7 miles
Amounts below are taken from both the "Purchase Information Screen" and Retail Installment Sale Contract":
MSRP: approx. 57,500
GM Rebates: (10,000)
Dealer Discounts: (8,000)
Price before sales tax: approx. 39,500
Discount from MSRP: over 31%
No trade-in, financing offered through dealership process at high 6% figure for either 60 or 72 months.
I got them to apply an offer made on one specific car to another car. The only difference between the cars was color. The car is gorgeous but is not black.
Dealer negotiation/purchase experience was my easiest ever.
I learned a lot during this market and spoke with many dealerships selling GM SUVs (Chevy and GMC). Most dealerships have been in denial about the supply/demand for their cars right now. They are starting to break down and dump 2008 models to raise cash to survive and to make room for buying cars that are more likely to sell when cars start selling again.
They are rightfully worried about setting customer expectations for very low prices for years to come, and they know they are already sitting on tons of 2009s, which, with the big difference in current rebates/incentives on GM models, are not selling **at all** right now.
Unless the economic news gets suddenly better, expect to see deals almost this good on 2009s in January 2009, once the 2008s have been largely sold down. Or maybe they will hope against hope and wait until February 2009. No true way to know.
Don't fixate on a particular color or exact option package. Buy what's on the lot. Look for GM SUVs made in Janesville, WI, they are almost always the oldest sitting on the lot (it's printed on the sticker). Look for situations where they have two or more identical cars -- say two golds with similar options, or two silvers (how will they sell two when they can't sell the first one?)
If a dealer won't get real and talk at least 3-5k more off the Red Tag price, don't even waste your time. Keep driving and e-mailing and calling. Someone will.
By the way, all the guys who wouldn't "talk turkey" and go below red tag in the past few weeks are suddenly calling me today and incrementally moving lower. I told them they're still not close, and that I am already driving my new Yukon Denali.
If you've ever been taken advantage of in a car deal in your life, this may be the only time you can reverse it on the dealer. Enjoy, and get out there and get that car in a tolerable color before the 2008 stocks are gone.
Some other thoughts: in this market, on an almost 60k MSRP car, I wouldn't pay more than 3k over the current Kelley Blue Book trade-in value for that car with your exact options and no miles. Who is going to even pay you KBB for your car when the market is flooded with unsold new vehicles in a depression?!
KBB trade-in value on a 2008 Yukon Denali in perfect condition with no miles is only 36.5k or so. And that's not taking all these new discounts into account, which drive that figure down further over time.
If you like the Yukon Denali XL, you may even be able to get 20k off MSRP (they appear to be in much less demand than the shorter wheelbase).
In normal times, dealerships apparently have many sources of profit on a sale transaction. Another dealer took some time to figure out, right in front of me, whether another dealer selling at 18k off MSRP (of which 8k was dealer discount) was truly losing money after considering "all sources". Believe me, it took a little time to figure it out. They were counting sources of manufacturer money that we consumers aren't aware of. And yes, they concluded 18k off MSRP was not profitable, but it did not seem that the loss was that significant.
The underlying lesson is that even at "invoice", dealerships ultimately (maybe months later when incentive checks are cut) make a lot on a sale of a luxury vehicle, even if the salesman only gets a mini commission.
What we forget is that dealers try to sell to each customer at that customer's maximum acceptable price. They get enough uninformed people to make a killing on a substantial number of cars, so they start out by trying to get that every time. I'd do the same if it were me.
But it is important to be respectful and mindful in speaking with them of the fact that these folks are not making what they're used to making right now, and that they have a lot of fear, as many of us do about what the future now holds for us all economically.
My approach is I am always ready to buy when I enter a pricing conversation with a salesperson. When you tell them "I will buy this car right now" if the deal is right, most will get down to serious work. Still, 4 out of 5 won't give you your optimal price. (They will call you later in the week with a better deal, though).
If you go in with a recognition that you are lucky to be able to purchase a car in these scary times, some dealer will work with you on a mutually beneficial deal. Be humble and they will be happy for your great deal and to cement a new long term customer. (And show some loyalty to them in return when times are better when they can make a few bucks).
I look forward to monitoring this board to see future great deals.
I am not a name-namer, sorry about that. But I will simply say that the dealer making this offer is not being shy about it. The discount is ostentatiously marked out front on the cars.
Nothing beats walking or driving by the lots, and reading the ads in the paper every day for all the brands. Car dealers are a pack, and they will follow each other's innovations.
Invest some time in knowing their situation, and you will get a great deal these days.
#164 of 238 Re: Yukon Denali AWD purchase [methodical]
Dec 14, 2008 (1:13 pm)
Great post, thanks for the information and insight.
#165 of 238 Re: Yukon Denali AWD purchase [methodical]
Dec 16, 2008 (2:00 pm)
Methodical, thanks for your very well thought out and informative post. From my calculations, you obtained about $4500 under invoice, not counting the $8K trunk money. That is the best deal I have come across with the most recent cash incentives from GM. What geographic location are you in?
I have been searching for a similar deal on a Tahoe LTZ or Yukon SLT (or less loaded Denali) for a few weeks here in So Cal. No luck so far, but your post encourages me to keep looking. Thanks.
Care to share which dealers wanted to truly "deal?"
#166 of 238 Re: Yukon Denali AWD purchase [ssmike]
Dec 17, 2008 (1:38 pm)
1) When I was buying I was weighing a fully loaded 2008 Denali and one with about 3k less in options. It was noted that the 18k off MSRP might not fully pertain to the cheaper vehicle, which makes sense. I didn't negotiate a price on the cheaper vehicle so it's unclear how much less that discount would have been.
2) A dealer in Sunnyvale, CA had two prominent newspaper ads in the San Jose paper this past weekend for 18k off MSRP on all 2008 Yukon Denalis and Yukon Denali XLs in stock.
#167 of 238 Re: Yukon Denali AWD purchase [methodical]
Dec 18, 2008 (8:06 am)
My how some things change. I bought a new 2001 Yukon XL that I'm still driving today that stickered out at $44K. With access to the G.M. discount I was able to pick it up for a little less then $37K . I thought that was a pretty good deal.
I love the vehicle & have had no issues with it and with only 80K miles on the clock, I fully intend(ed) to drive it for several more years.
Methodical, when I read your post I ask myself if maybe it's time to get while the getting is good.
#168 of 238 Re: Yukon Denali AWD purchase [methodical]
Dec 19, 2008 (10:36 am)
thank you methodical for this very thorough post. it's the best i've read on edmunds. i'm also a long time lurker and user of the forums to inform myself of prices. i have a similar negotiating process to you. however, i actually sold yukons and escalades in the past, so i have some insider info as well.
friends ask me all the time how to get the best deal on a car, so i started a wiki recently to document all the different buying processes i've been through for different cars. the goal is to create even more transparency by listing prices paid and buying experiences in an organized way for buyers to help other buyers. my last deal was a lease for a 2008 bmw 328i. i listed it at wikibuyer.org.
thanks again for the post! i always wanted a denali, now i'm seriously considering it. if i do pick one up i'll definitely post it here.
#169 of 238 I think this is a good deal, so I bought it
Dec 26, 2008 (11:32 am)
In florida, 2008 Yukon SLT w/4sa package in silver with titanium leather trim and captains chairs with the 5.3L Flex Fuel V8 OHV 16V FI Engine for $31,400 out the door. We have 6% sales tax so you can adjust backwards for comparison we are right where other people pay. Apparently two weeks ago they got another incentive package from GMC (according to my dealer), he said I could wait, but there are very few SLT's w/ captain's chairs left in inventory (captain's chairs were my wife's deal breaker), but he still had lots of 2wd SLE in cloth and lots of Denalis.
#170 of 238 Price on 2008 Tahoe with LT1?
Dec 29, 2008 (9:10 am)
I am wondering what sort of price I could get on a 2008 Tahoe with LT1 with a few options. Something with MSRP around $34k. I am wondering if I could pick one up new for $23k or so. I would think after the Red Tag price and $8000 customer cash, I should be able to find something. Any thoughts? Thanks!
#171 of 238 Re: Price on 2008 Tahoe with LT1? [formulavee]
Dec 29, 2008 (1:08 pm)
Keep it simple. With everything that's going on, I think I'd shoot for around $5K under invoice, negotiate from there............
#172 of 238 Buy new vs. trade in
Dec 30, 2008 (6:08 pm)
I am itching to take advantage of good pricing on an 08/09 XL either SLT or Denali but am concerned about what i will get on my trade. i currently have a 2006 black Denali with 36k and am afraid i will get low-balled on the trade in. KBB shows $20K for tradein...even though i got it for less than $40k originally, 50% depreciation in 2 years stinks and i'm not going to give GM a lot more for the same truck that only gets 15 mpg. any thoughts out there?