well I just got back from a gmc dealership. I am looking to buy a truck and wanted to trade the Ls in. Well they offered me 16,500 on my 03 Ls V8 fully loaded with 61,000 miles. The payoff for the car is 18,900 so that leaves mw with negative equity however they are giving me a 5,000 dollar discount of the truck so the negative equity will be taken care of along with taxes ect. So I will only end up paying the price on the sticker. It sounds like a good deal but I was wonderin if maybe I should ask more for my LS. The car is beutiful and is in good shape cosmeticaly. I feel like its gonna need coils pretty soon but the dealer ship dosent know that. So is 16,500 fair or should I ask for more?
Just got back from the dealership
- Thread starter Luda 420
- Start date
It is not bad, but I got about that much for my '02 this sat on a Mercury Marauder. I owed just slightly less than you. I would maybe see about another grand but as you well probably hear from a few on here the dealer is out to make money and there are alot of costs involved in your trade and such. My LS had 20K less miles than yours though so its sounds pretty decent.
Black03
Dedicated LVC Member
are you looking at an 06 or 07? I cant believe the best deal they will give is 5k off sticker on an 06.
Black03 said:
sorry for the misundersteanding, im buying a 06 gmc sierra crew cab from a gmc dealership. My father has one and it wastes about the same gas as my lincoln
They are also quick, but the lincoln is still much quicker. I think ima go for it, im going back to dealership right know. wish me luckYou have to look at it as two seperate transactions, or else you can get screwed.
For the best deal? sell the LS outright yourself, privately. At a MINUMUM, drive over to CarMax and see what they will offer you for it.
Now...time to focus on the second transaction: the purchase of the new Sierra.
Since you know exactly what you want, do the following:
Once you are ready to purchse, Call 3 or 4 GMC dealers in your area. Ask to speak to the sales MANAGER. Tell him you plan to purchase a Sierra within 24 hours, and you are calling 3 dealerships to get the BEST quote. Tell them you want the invoice of the actual truck faxed to you, along with the best selling price they will sell it for. Let them know the lowest price will get your business.
Some dealers won't go along, but I found 3 Lincoln dealers that did in my area. Ended up getting my '02 LSE for $500 UNDER invoice at the time. (The dealer had literally JUST gotten it in that morning, and still made money on it due to being able to pocket all of the factory holdback money)
For the best deal? sell the LS outright yourself, privately. At a MINUMUM, drive over to CarMax and see what they will offer you for it.
Now...time to focus on the second transaction: the purchase of the new Sierra.
Since you know exactly what you want, do the following:
Once you are ready to purchse, Call 3 or 4 GMC dealers in your area. Ask to speak to the sales MANAGER. Tell him you plan to purchase a Sierra within 24 hours, and you are calling 3 dealerships to get the BEST quote. Tell them you want the invoice of the actual truck faxed to you, along with the best selling price they will sell it for. Let them know the lowest price will get your business.
Some dealers won't go along, but I found 3 Lincoln dealers that did in my area. Ended up getting my '02 LSE for $500 UNDER invoice at the time. (The dealer had literally JUST gotten it in that morning, and still made money on it due to being able to pocket all of the factory holdback money)
Hey guys im back again. Well im back from the dealer again, only this time I came back with a 06 GMC crewcab! It is niceley equiped. Honestly iits really nice inside but not as nice as the Ls. And im impressed with the engine, it pulls hard. its got a 5.3. but heck, what am I doing describing a gmc truck in a lincoln forum. well imma miss the LS VERY MUCH. It was really nice but i bough it used and was really concerned with its reliability. so they gave me 16500 for it and was 1500 dollars in negative equity. Not bad. they gave me a 5,000 dollar discount so it didnt really matter that much. I just figured it was a good chance to get rid of it. Well thank you guys for providing so much info on the LS when I needed it. Like i said,im gonna reall miss the car
well imma miss the LS VERY MUCH. It was really nice but i bough it used and was really concerned with its reliability. so they gave me 16500 for it and was 1500 dollars in negative equity. Not bad. they gave me a 5,000 dollar discount so it didnt really matter that much. I just figured it was a good chance to get rid of it. Well thank you guys for providing so much info on the LS when I needed it. Like i said,im gonna reall miss the carCongrats, I am back from the dealer I went to and officially own a Mercury Marauder . Atleast you did not go negative w/ that discount, I'm happy my dealer gave me the GAP insurance at no cost, could come in handy in a dire straight situation haha.
Guess you can say we bought a vehicle together. Good luck w/ that GM, that 5.3 is a pretty peppy engine. I detailed one and it was a good getter upper.
. Atleast you did not go negative w/ that discount, I'm happy my dealer gave me the GAP insurance at no cost, could come in handy in a dire straight situation haha.Guess you can say we bought a vehicle together. Good luck w/ that GM, that 5.3 is a pretty peppy engine. I detailed one and it was a good getter upper.
Not true. When i just bought mine last week the salesman said, "Finance for 60 months, thats what everyone does"..... and thats how everyone gets negative equity too. Here is a basic formula to follow: Find out what you can afford for a 4 year loan, then take that payment and multiply by 12. Make that your down payment and finance the rest for 36 months. Example: $16,000...48 months...8% = $390 month. $390 x 12 = $4680. Put $4680 down and finance the remaining $11320 for 36 months and you WILL NOT be negative during trade in time. Financing a car for more than 48 months will most likely always put you negative. If you enter a loan with negative equity then you'll start a continuous cycle of negative equity. Too many people just look at a monthly payment and whether they can afford it and make a decision based on that. Doesnt work that way.Beamer said:
Yea it would be nice to have that money but I know few who do that, just a thing that comes along w/ life and the pursuit of nice cars. If I had that kind of money for a downpayment I would not of been looking.
I feel you on that. But that $4680 figure doesnt have to mean cash. Could be a positive trade plus cash. All in all i think alot of people overstep their means and get upside down which the loan officers are more than willing to accommodate.Beamer said:
2001LS8Sport
Dedicated LVC Member
Fla02LS said:
That's a good scenario...and one worth following. However, it can become moot in a hurry when you start looking at $40,000 plus vehicles. Then payments can be so high you must extend the term. The only answer then is to plan on keeping the car for quite a while to gain the equity you need.
True. But if your talking $40,000 then most likely its brand new with close to zero miles with a full factory warranty. That is a different situation. Even then if you spread it out to 60 months your not going to be in a good place come trade in time. But if you can afford a $40,000 car then you need to afford a big down payment. Again, it doesnt need to be all cash. If you buy smart just once then you'll get into a cycle of positive equity and making every subsequent purchase alot easier. Resale and depreciation needs to be a factor in buying a car. Most people are buying used, medium mileage and little to no warranty. Thats adds alot of extra repair expense to the overall cost. My boss has a new Benz S500. Its crazy to me that he makes a house payment for that Benz, but he can afford it.2001LS8Sport said:
JES_LS
Dedicated LVC Member
Fla02LS said:
I guess I'm in the minority, but what do you me by getting to trade-in time? I keep a car as long as it runs and I still like it (which is usually well after it is paid off). Also I never trade them in either, I just rack up too many miles.
But I guess my point is this. If I take out a car with a 60 month loan, then I know I'm not going to be looking to replace that car for 60 months. then there is no issue with negative equity.
you cannot buy a car on a 60 month plan, and try to trade it in in 36 and not expect to be "upside down" as they say in the dealership. Well I suppose you could if you just parked in the garage and looked at once a week, but that's about the only way.
Its not the price of the car it's how the depreciation hits.
You bring up a great point. Most people will finance for 60 months to get a good payment but then DO try to trade in or whatever before that 60 months is up. Any car will be positive if its paid off. Most people dont get that far though. I think a very important factor is a warranty. If you buy a used '03 and its warranty is gone and finance for 60 months, thats five years worth of possible repair costs which could be insane. Look how many people on here say they are going to get rid of their LS because the repairs are killing them. People nowadays look at cars like their jobs...they switch every few years. I just traded in my '02 LS. I only had it 11 months but i still made alot of money off of it. Between the original down payment and the 11 monthly payments i spent about $8500 to drive that LS for 11 months. They gave me $10200 trade. I put 24,000 miles on it in 11 months. So essentially i drove a free car for almost a year. Well that previous good deal has now put me ahead with the new '05. If i totalled it today i'd still make a profit on it and use that as a down payment on a new one.
2001LS8Sport
Dedicated LVC Member
Except FLA...there is a HUGE difference between trade value and ACV. They are probably in your trade a max of $7000. The best way to find out just exactly how much they are willing to put into your trade is to make the very best cash no trade deal you can. Then tell them you want to trade and shoot you a difference price.