20% off killing trade value?

[Mark114]

I read an article in WSJ that used car prices dropped significantly in 2014 across the board. The imminent release of the 6th Gens isn't going to help us. I have been watching resale and trade-in prices for a while and they were bad before the 20% deal. The dealers here have a lot of inventory so it would seem that sales are already slowing in anticipation of the new car. Looks like it will be a tough year for resale values.

[Q'smuscle]

Seem trading in your car for recaros wouldn't make any sense! Buy them damn things!

[Travis104]

It wasn't just recaros, it was also 2 years newer...lol. I will look into a seat upgrade, or wait until I see what the 6th ten looks like.

[VJZL1]

I have a 2012 with about 610whp. My advice to anyone with a ZL1 is to keep it if you can. The car is truly special. One, it is the last of the Zeta platform from now soon to be defunct Holden

Two, it is the first ZL1 since the 69 model. Three, the owner of Barret Jackson owns one and swears of it's future collectability. On top of all that it will be one of the last V8 "analog" cars out there.


Whatever depreciation will occur with this 20% cut will only be temporal but we will see values come back in time. Sit tight and enjoy your car and try not to build yourself up into "impulse" buy mode or worse.

[FASTDIESEL]

Originally Posted by 45thAnniversary2SS

WOW! Did they at least offer to take you to dinner first?

If not, maybe they will offer him a smoke afterward!

[Travis104]

Lol, they didn't offer me anything at all...it would of hurt a little less if they would have.

[Front Runner]

Originally Posted by Travis104

I have a 2013 ZL1. It has a sunroof, polished wheels new tires all fluids changed, and supercharger recall completed. My car has about 19700 miles on it. I found a 2015 that I liked with recaros and optional wheels. MSRP of the car was a little over 65k and with the 20% off they were going to let it go for about 53k. I have looked at NADA and KBB for the book value and stuff on my car, but the dealership only offered me 30k for my car.
I think this is pretty low, as I paid quite a bit more for my car in the middle of 2013, but is this going to be the trend now, or do you think that trade in will go up when this sale is off? I know it is all about the difference in price as opposed to just sale price and trade in value, but still 30k....

Personally, I think the dealer is trying to capitalize on your trade during the end of the year event.

By offering you such a low amount the dealer implies that they are discounting the vehicles that qualify for the 20% msrp reduction, when in fact, GM is discounting the vehicles. The rebate is from GM not any specific dealer and the rebate paperwork that is completed during the deal is for GM, not the dealer.

If anyone is taking a hit, its GM, not the dealer. The dealer isn't loosing any money but are actually benefiting because they're selling more vehicles as a result.

Your dealer wanted the best of both worlds; a rebated sell (compliments of GM) and to low ball you on your trade so they could ask for a much, much higher selling price on it as a used vehicle.

I say go to another dealer.

[Trip]

I think things will be better for you when the sale is over. Right now the value is low because you can easily pick up a brand new one for a big discount, just like you're trying to do. After the sale is over, that option will be gone and things will be better. It was only a discount on 15% of the inventory.

There's literally used 2014 cars on autotrader selling for the same price as a brand new 2015 camaro right now with the 20%. That option will be gone soon though.

[Raven87]

Originally Posted by Trip

I think things will be better for you when the sale is over. Right now the value is low because you can easily pick up a brand new one for a big discount, just like you're trying to do. After the sale is over, that option will be gone and things will be better. It was only a discount on 15% of the inventory.

There's literally used 2014 cars on autotrader selling for the same price as a brand new 2015 camaro right now with the 20%. That option will be gone soon though.

^THIS. The 20% off hit will soon be gone and trade values will rebound accordingly.

[Front Runner]

Originally Posted by Raven87

^THIS. The 20% off hit will soon be gone and trade values will rebound accordingly.

Yep.

Ends Friday 1/2/15.

[Nick S]

Everyone is missing the fact that the reason the OP was considering a trade was because of the 20% deal right now making the 2 year newer ZL1 less expensive but still have the upgrades they are looking. So waiting until the rebate incentive is over will also mean that the car of interest will also be more expensive again. So waiting won't help the buyer and not waiting won't help the buyer. Either way the buyer with a trade in will be in a lose lose situation.

[hotlap]

You can't have the benefit of the slashed price on new MY without feeling the negative impact on the value of the same model (only older MY) trade.

Buy the new car without your trade. Sell the trade privately after 20% is over. Apply funds from trade to the new cars loan after it is sold.

[Kags1969]

So having been in accounting in an auto dealer, I have a little insight into this.

The rebate is a perishable item, once its over its gone for both customers and dealers. This amounts to big pressure on the dealer to make use of this rebate to move its oldest inventory.

I would wait until 1/2/15 and if they still have the car, you will have tremendous advantage. Go in with a reasonable deal, establish what your vehicle is worth wholesale and establish what a nut-cutting deal is on the zl1 (like invoice - holdback - rebate). This will be the best that you can hope for on the upgrade imho.

Or cut a great deal to a friend on the car (wholesale) and do a dealer pass through trade so that you get sales tax credit.

The cheapest option is to stay in your current car and upgrade some stuff...

[Q'smuscle]

Originally Posted by Travis104

It wasn't just recaros, it was also 2 years newer...lol. I will look into a seat upgrade, or wait until I see what the 6th ten looks like.

So , I'm you're gonna be trading in alot ! I could care less about newer if the lookse aren't there but hope you get what you want!