"Cheap" new basic truck is $27,500!

This thread started out with "Cheap Basic Truck", & the discussion took off! One thing I didn't see in the Thoughts & Ideas, are this; It's time for the 2022 s to come out, if some haven't already. I see some GM reports about some 23 models being ready! Holy Cow. Now as the Chips make it to the Manufactures, they will have Thousands of 2021 & possibly 2020, models, to dispose of. Do you think they will have to Wholesale many if not most of the year-to-two year old stock? Seems like there will have to be a drastic reduction in price, to unload the New-Old autos. And that too, Should kill the used car market. That may be the time, to get the Best deal on Anything, Not Brand new. And, as a Cheap car/truck, if you can get by with a "like-new" car, with 10-15K miles on it, keep a look out for the "Program" cars. Lease, units, rentals, & such. I see some dealers, occasionally get a mega load of them & selling them around $20K.
 
We just ordered a "not yet built" 2021 Z71 Tahoe from the dealership. It does not yet have a VIN #, so they have no ETA on delivery, which is fine because we aren't ready for it. It KILLED me to agree to full MSRP, but this suits all of our needs to the T. We test drove a 2018 Yukon Denali XL that I thought was perfect, but the second row seats are fixed and sitting in the third row, my knees hit the second row. If mine do, my kids definitely will during the life of the vehicle. I just couldn't see myself or anyone my size being comfortable in that third row for any length of time, especially not a trip to Disney - which is the prime purpose of the vehicle (towing a camper to Disney).

Since we ordered it, they have had two similar Z71 Tahoe's come in one with with 100 miles on it and the other with 600 miles on it. Both are selling as "used" vehicles for $5000-10,000 more than I am paying. Now, granted, you could probably negotiate that down a smidge, but it's still considered "used". I am hoping that my credit has gone up enough to qualify for the 0% offer. I was at 730 last I checked.
 
ManglerYJ said:
I am hoping that my credit has gone up enough to qualify for the 0% offer
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Don't hold your breath! When I went in to buy my 2015 Silverado, they advertised 0% or some other low figure. My credit rating was & is around 800. So I requested the 0%. They came back with some crap, about me Not having Enough Credit. [ Like you need to be making monthly payments to multiple loans] And if I wanted the 0% I would loose the $xxxxxx amount discount, they offered. Don't remember the amount, but it seemed like a wash with the 3.2% financing BOA offered. What, no GMC loan? Nope. Anything a auto dealer does, is a ripoff, somewhere! Just like they Admitted to me, the Dealer Prep fee, is just a straight Profit for them, but they would Not drop that. I did get every discount possible, even some the general public doesn't know about.
 
rodney eppes said:
Don't hold your breath! When I went in to buy my 2015 Silverado, they advertised 0% or some other low figure. My credit rating was & is around 800. So I requested the 0%. They came back with some crap, about me Not having Enough Credit. [ Like you need to be making monthly payments to multiple loans] And if I wanted the 0% I would loose the $xxxxxx amount discount, they offered. Don't remember the amount, but it seemed like a wash with the 3.2% financing BOA offered. What, no GMC loan? Nope. Anything a auto dealer does, is a ripoff, somewhere! Just like they Admitted to me, the Dealer Prep fee, is just a straight Profit for them, but they would Not drop that. I did get every discount possible, even some the general public doesn't know about.
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I knew about losing the dealer discounts (not like any discounts exist at the moment), but wasn't aware of the "not enough creditors thing. That's a crock. Well, I know I have one locked in with State Employees as a "worst case scenario", so if they can do better than that, I'll take it, otherwise I'm good even with SECU.
 
UTfball68 said:
I don't even understand how people could go 84-96 months, you're upside down on that car until you pay it off, damn near. I wonder the number of times you can roll the loss into the payment of another vehicle before you're swinging above your weight class...and you end up owing twice as much as the new car is worth. That would have to be a terrifying feeling, I can't even fathom that thought process. If you're broke, be broke...no shame in a shitbox, but that's probably why they're broke.
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And just wait until all these folks that jumped on new homes/construction... made with "Covid priced" lumber (at 250%-300%) start feeling the pinch!
Upside down in a house that only appraises for 30% of it's cost?

GREAT_WAS_THE_FALL_OF_IT
 
Something about these comments doesn't make sense to me, and I have zero experience in auto dealer world, soooo...

Dealers only have about 942,000 vehicles in inventory for retail sale
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Although inventory is arriving at dealers daily, it is simply replacing the vehicles being sold, preventing dealers from increasing inventories to a level necessary to support a higher sales pace
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Ford’s total sales last month topped 124,176 vehicles
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To me, that says they have 7.5 months of inventory as a cushion, albeit less than they're accustomed to. Unless it's the wrong inventory for demand, or sent to the wrong dealers, or are governing sales because they're not sure how long this thing will screw up their sales/lease/used car structure??? Otherwise, I'm not sure why 7.5 months worth of safety stock and replenishing sold units daily is that big of a deal. Or now that stimmy checks have stopped, sales are naturally dropping but being blamed on chips.
 
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TARider said:
I'm selfishly glad to see this one. I've decided to take advantage of the insane trade in values and cash out of my 2020 GMC 1500 but the new ride doesn't show up until late October so this should help values stay high 😄
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How many times are you gonna flex on us that you got a new tahoe in the works?


:lol:
 
TARider said:
I'm selfishly glad to see this one. I've decided to take advantage of the insane trade in values and cash out of my 2020 GMC 1500 but the new ride doesn't show up until late October so this should help values stay high 😄
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I'm considering it hard... checked KBB value on my truck last night and it was down a little from a month ago. I'd like to just sell the truck and do without replacing right now, but I'm not completely comfortable with relying on the 190k mile 2005 yukon xl 2500 that I've only had for 2 months as my only available tow rig...
 
This article seems to be running a day behind!
Kazunori Ito, head of equity research at Chicago-based investment research firm Morningstar Inc., told investors in a conference call last week that the worst of the microchip shortage “should go away in 2023 or so.” Ito also said the ongoing supply crunch is “stemming from suppliers’ lack of output and [customers] trying to buy more components than what they need.”

Isao Matsumoto, CEO of Japan-based automotive chip supplier Rohm Co., echoed this sentiment when speaking to the media last week.

“All of our production facilities have been running at their full capacity since September last year, but orders from customers are overwhelming,” Matsumoto said, as quoted by Kelley Blue Book. “I don’t think we can fulfill all the backlog of orders next year.”

“Our plan to increase the quantity of chips we ask others to make on our behalf hasn’t changed, but these foundries have no such capacity right now, and next year looks very tight as well,” he added. “Maybe we can resume it from a year after next, albeit gradually.”



This likely means that intermittent plant shutdowns driven by a lack of chip supply are likely to last for the rest of 2021, 2022 and into 2023. These chip-related production setbacks have hit virtually every major automaker, including General Motors, which recently extended several plant shutdowns through to September. Toyota also announced plans to pause production at 14 of its global facilities last week.



These plant shutdowns have caused a frenzy at dealerships, driving up demand and reducing incentive spending as customers fork over the MSRP or sometimes more to get to the vehicle they want. High new car demand has also driven more consumers to used dealerships, creating a backlog of second-hand vehicles and driving up prices. The average advertised price for a used car in America at the end of July sat at $25,500 – 28 percent higher than in July of 2020.

Subscribe to GM Authority for ongoing microchip shortage news, vehicle demand news, GM production news and GM news coverage.
 
so maybe all the chips arent the same... and I know that GM has cut out certain "features" from some vehicles to conserve them... but if the supply isnt going to be fixed for 2yrs, why not look making more basic vehicles? I mean, GM and Jeep, atleast, are releasing new SUVs for 22 that have 4+ large screens in them. Maybe the margins are better with the more expensive vehicles?
 
paradisePWoffrd said:
so maybe all the chips arent the same... and I know that GM has cut out certain "features" from some vehicles to conserve them... but if the supply isnt going to be fixed for 2yrs, why not look making more basic vehicles? I mean, GM and Jeep, atleast, are releasing new SUVs for 22 that have 4+ large screens in them. Maybe the margins are better with the more expensive vehicles?
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People won't buy them.
Been over that many times with the marketing dep.
 
paradisePWoffrd said:
so maybe all the chips arent the same... and I know that GM has cut out certain "features" from some vehicles to conserve them... but if the supply isnt going to be fixed for 2yrs, why not look making more basic vehicles? I mean, GM and Jeep, atleast, are releasing new SUVs for 22 that have 4+ large screens in them. Maybe the margins are better with the more expensive vehicles?
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A friend of mine bought an LT Trail Boss last week. It's actually noted on the window sticker that it doesn't have auto start/stop and a $50 credit in the options list for not having. I'd call it a bonus feature.
 
Bebop said:
People won't buy them.
Been over that many times with the marketing dep.
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That is what i figured they would say. But with them selling everything on lot these days, as it seems and the prices indicate, I might argue otherwise. But I am all too familiar being an engineer talking to marketing/sales people.
 
paradisePWoffrd said:
That is what i figured they would say. But with them selling everything on lot these days, as it seems and the prices indicate, I might argue otherwise. But I am all too familiar being an engineer talking to marketing/sales people.
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Look around you. Even here on the board.

Let's use the tow rigs thread as an example.

How many people have a work truck trim, vs how many people own Lariats/fancy units.
 
Bebop said:
Look around you. Even here on the board.

Let's use the tow rigs thread as an example.

How many people have a work truck trim, vs how many people own Lariats/fancy units.
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Yep, it's a psychological/mentality thing though. There are plenty of people who would NOT pay the extra for the Laramie/Lariat/LTZ/Longhorn/Limited (apparently it has to start with an "L") features if they were buying a new truck. But they mostly are also the people who would NOT buy a new truck. Those would would buy a new truck every 2-4 years are also the ones who want all the features so they can impress others.

I guess I'm some odd middle ground. My last 4 trucks have been Lariats/Laramies, but they also were all 3+ years old with 150k+ miles on them, and purchased at 15-30% of new truck price. I like some of the fancy new truck features, and I would love to have a new truck, but from a utilitarian standpoint, my used trucks did/do the exact same job as a new truck, so for me they are a tremendous value.
 
jeepinmatt said:
Yep, it's a psychological/mentality thing though. There are plenty of people who would NOT pay the extra for the Laramie/Lariat/LTZ/Longhorn/Limited (apparently it has to start with an "L") features if they were buying a new truck. But they mostly are also the people who would NOT buy a new truck. Those would would buy a new truck every 2-4 years are also the ones who want all the features so they can impress others.

I guess I'm some odd middle ground. My last 4 trucks have been Lariats/Laramies, but they also were all 3+ years old with 150k+ miles on them, and purchased at 15-30% of new truck price. I like some of the fancy new truck features, and I would love to have a new truck, but from a utilitarian standpoint, my used trucks did/do the exact same job as a new truck, so for me they are a tremendous value.
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If you'd buy a used 150k 3+ year old work truck you'd save even more money.

People who buy new buy nicer trims because they like the features. That simple.
 
Bebop said:
If you'd buy a used 150k 3+ year old work truck you'd save even more money.

People who buy new buy nicer trims because they like the features. That simple.
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"I guess I'm some odd middle ground." :D

Plus I'm a hawk, so I swoop in on the Laramie/Lariats at XL prices. Or maybe I'm a vulture. :laughing:
 
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