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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.
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?"
Mike
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.
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. :confuse:
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.
Now our lease on our volvo wagon is close to coming to an end. I am thinking Suburban/Yukon XL. What should we truly be paying? Is a 2009 better than a 2008? The 2009 do have the 6 speed, that has to help highway miles.
Any advice to a SUV rookie would be appreciated.
They're now offeing 0% financing on top of the $4000 incentive. If I walk in Monday morning ready to buy, where do I start the negotiations?
How much lower will they go than the $45K
What deals are you all getting these days? I thought they were hurting...but they still expect close to 50k for a truck?
Dealer Invoice: 50877.23
The Deal:
- 4000 (ending lease cash)
- 1000 (cash back)
- 1000 (cash back)
- 500 (dealer so call discount)
so that is $6500 under the dealer invoice price. Now this is no way the 18k off the Sticker that was advertise a few months ago. Does anyone have any feedback for me??
January 09 I purchased a 08 Denali XL AWD.
MSRP was 59,010. And before trading in my Honda van I had the price down to 40k. 4k extra for my van and I was down to financing 36k. Not a bad deal I thought.
The way things are going no days though, people are getting vehicles for more like 20% off, but the former will give you a good spot so that you won't get too hosed.
Thanks,
Chintan
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After one particularly bad snow storm, where I barely made it up a pass in my Acura TL, I'm toying with the idea of a Yukon Denali. I have found a gorgeous white one, fully loaded (dvd, retracting running boards, leather, captain chairs and the larger engine). It has 10,400 miles on it and they are asking $43,000. Based on the posts for the new Denali's, I'm thinking of offering $34,500. Any thoughts?
$57,175 agreed upon price (basically at invoice minus $100)
$3500 rebate for having a lease with Volvo which expires before 10/31/2009
$1000 cash back
$1000 GM bonus cash
$1500 rebate from my GM credit card
6% Michigan tax
$54,300 (give or take $100) delivered price
Any thoughts? This was purchased in Ann Arbor, Michigan
I took the 0% financing and applied my GM Card for another $2200.
Loving the Denali and glad I didn't miss a big bump inthe rebates for May.
Thx again.
But the deal I got wasnt rare at the time (jan09). I had been to 3 other dealers besides this one and had 2 talked down to 44/42k from the 59 with no problems at all.
Im pretty happy with the deal I got though. 59 down to 40 w/o any rebates, refunds, etc etc. Just a straight up drop in the price.
Good luck and I hope you get what youre looking for at the price youre wanting to pay.
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I am in the process of buying a 2009 yukon. I am wondering if there is a way to find out what the dealer paid for the car. Not sure how much to knock off and how much I can talk them down
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2009 GMC Yukon Price with Options
Good luck!
kyfdx
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Thanks
There aren't many of these around where I am, so I think I still could have negotiated more if there were. I was fairly specific on what I wanted.. black on blacks sell fast..
$49,970 discounted base price
minus $4,500 mfr rebate =
$45,470 (nearly $7,000 below invoice and over $10,000 below sticker)
$4,877 CA sales tax
$699 license and DMV fees
$55 doc prep fee
$51,102 total out the door
Keep in mind that I was able to pay cash - no financing.
first is a 2007 XL Denali 4x4 with 28k miles on it - White with cashmere interior, fully loaded with all options and has 22" bling chrom rims brand new with new tires. They started at $40,500 and I have them down to $36,800 plus fees. Still has 1 year on the warranty and is being sold by GM of a local Honda dealer
second one I am looking at is a 2009 XL Denali Black with cashmere interior 4x2 with all options other than non-moving running boards and no cooled seats.comes with 20" chrome rims. I got them down to $46,000 plus fees. there is 100 miles on this one. please know that if I buy the 2009 I'd have to lay out another $2,000 to get my wife the 22" bling rims she won't drive without.
thus I see the 2 trucks being at a $12,000 difference after all said and done. My thoughts were that I won't ever make up for the depreciation of the new one where the used one already has taken a hit for being 2 years old...............and I'd have to keep the truck at least 7 or 8 years before I'd start seeing the payback of buying the new one. again, I am just not used to buying used but know there is usually the most economical and value in doing so.
please send me all of your comments ASAP b/c I don't want to lose the one that is best if you think either or both are strong deals.
Is that worth the difference?
Is it worth it to you more importantly?
Have you done a CarFax on both too make sure neither was in an accident or had a major problem?
I would go back to the 2009 Denali dealership and simply say "make me an offer to buy this one or Im going to buy the 2007"
Let us know Im interested too because I have a 2007 Denali and Im considering a 2009 0r 2010.
Is this a good price or should I be looking for a better deal. Any help and suggestions would be helpful.