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GMC Yukon/Yukon Denali Prices Paid and Buying Experience

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  • 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.
  • Great post, thanks for the information and insight.
  • 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?"

    Mike
  • Two thoughts:

    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.
  • 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. :confuse:
  • 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.
  • 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.
  • 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!
  • Keep it simple. With everything that's going on, I think I'd shoot for around $5K under invoice, negotiate from there............
  • lexlanlexlan Posts: 10
    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?
  • That's a bit of a tough call. You can drop it in the paper or Craig's list and sell it yourself. But on the trade your paying tax(at least in Ohio) on the difference so the question becomes, "Can I sell it for that much more myself to make it worth it?"
  • murphy4murphy4 Posts: 92
    We have 3 small boys, a dog and seem to always have a bunch of gear on trips. We have never been SUV people, always foreign wagons. We rented a Suburban last summer on a trip and I love it. The gas mileage was better than expected, managing the right foot and the cylinder de activation on the highway makes a huge difference.

    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.
  • Does anyone have any idea if they will up the rebates for the 09 Denalis stating in Feb? I am trying to decide whether or not to pull the trigger on an 08 with all of the rebates that isn't quite what I wanted or wait and see what they do when these incentives expire. As of now the 08 models have 9K in rebates compared to 4K for the 09 models. I would rather have the 09 but just wasn't sure what was going to happen. Any predictions?
  • Any updates on Feb pricing? I saw a sign in the window of a Denali in early January at the local dealership that said $18K off MSRP, but based on the rebates I'm seeing and the markup from invoice to MSRP, I don't know what other components get to an $18K off price. Anyone with a recent purchase, please share how much off MSRP you ended up at before TTL or trade-in. thanks
  • The SLT's equipped the way I want are stickering for about $53k. I test drove one a couple weeks ago and they cut right to the chase with a "buy it today price" of about $45k (included $4000 in incentives) - I was ready to make the move so I didn't negotiate.

    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
  • vinnynyvinnyny Posts: 772
    My local dealer is now showing $10k off plus 0/60 on Yukons. They are so hurting for sales, that they're making money-losing deals just to give their staffs something to do.
  • I'm having trouble finding the 4x4 yukon w/ color and specs that we want (nav/backup cam). We've finally located one a ways a way but their starting internet offer was still too high. $52k sticker down to about $46k before TTL.

    What deals are you all getting these days? I thought they were hurting...but they still expect close to 50k for a truck?
  • kwolf1kwolf1 Posts: 2
    Sticker: 55040.00
    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??
  • helenb3helenb3 Posts: 1
    I wonder if the bailout has made them not quite a paranoid as they were a few months ago.
    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.
  • kwolf1kwolf1 Posts: 2
    Im already approved with GMAC and just need the right dealership to give me that same 18k off the sticker. What dealership did you use?
  • r3markeyr3markey Posts: 1
    Basically, you take the sticker, multiply that by 0.886, that gives you a starting point. Then subtract all the rebates; there are also dealer rebates that they don't advertise, so if they are willing to knock off some even amount, like $2500, it's probably a rebate.

    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.
  • Kirstie_HKirstie_H Posts: 10,907
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  • jhetsaljhetsal Posts: 1
    These forums are the best!

    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?
  • dkirkcondkirkcon Posts: 1
    Hi I am very close to buying a 2008 Yukon Denali. It was a demo and has 7000 miles on it, its MSRP is 56,165, and they offered it to me for 46,500. I did not know whether this is a good deal or whether I should be able to get it for a lower price, and if so what price would be a good deal. Thanks.
  • vinnynyvinnyny Posts: 772
    BAD DEAL. You could have bought it new for 16-18K off MSRP a few months ago. Book value used is still 10K less than your offer. Check EBay for reference...
  • jim10jim10 Posts: 6
    $61,900 MSRP
    $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
  • Sun/Dest/Ent Package, Cooled Seats & Blind Zone for $53,800 Doesn't include 200 doc fee and taxes or rebates and GM card.

    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.
  • hwytravelhwytravel Posts: 1
    All - thank you for sharing your experiences. Would you include the dealership name? After an initial conversation with my local GMC dealer the Denali MSRP is $57,970.00 and the first pass at a negoitation netted $51,379.00.
    Thx again.
  • MrsRMrsR Posts: 1
    kwolf1, sorry I took so long getting back to your question. The dealership I used was in Western Oregon. I wont say the name because the 'after sales' service bordered in beligerent and abusive. I turned them in to the owner, GMC direct, and the BBB. After all that I dont feel good about turning any business their way.
    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.
  • dmogiedmogie Posts: 1
    I purchased my black 2001 Denali XL early in 2003. I found it on ebay from a Porsche Audi dealership in Minneapolis. Cool wheels and tires, 17k miles. Perfect condition. I only paid $31k, similar vehicles in Colorado were $38-$40k!
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