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Telluride Order & Future Trade In Value of My Denali

Messages
67
Likes
6
Location
Fishkill, NY, USA
#1
Ok so I talked to a Kia dealer today and yes they are saying they can order a SX Prestige Moss w/ black Napa and tow pgk. but will take 13-16 week she said. So i said i'm OK with that but i want to agree on the price of the T-Ride as well i want a firm offer for the trade in (future) value of my 2014 Sierra Denali 1500 series truck. She said they could not guarantee the same appraisal 4 months from now... We don't know market conditions and the future value...blah blah Blah... But I told her that's the only way I would do the deal with anyone. I don't want a bait and switch... We'll give you $20K for your truck as the appraised value today and then come 4 months down the road "oh we cant hold to that number" and now i'm stuck with what ever they decide the truck is worth at that time. She says "you can always get your deposit back if you don't like the new appraisal..." Well ain't that just grand! They now would hold the cards as my custom order is in and they can now change up on what they want to give me for my truck?? Hell No!

I am in construction and we do this day in an day out bidding on work in the future and not knowing what commodity pricing will be when its time to buy it for installation 6 months from now.. We take educated guesses of material and labor escalation and you roll with it... This is no different! If any of these dealers want my business they need to guarantee the price of the T-Ride AND my future value of my trade and stick to it...Only then will they get my order. They certainly can take in to account added mileage and place their bets... ;)
Now barring an accident or something drastic happens like my engine blows, well i guess the deal could be broken but that would be the only reason to back out of the deal.

I'd like to hear your opinion of this pricing strategy. Any comments are welcome.
 
Messages
307
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131
#2
Well since you know the dealer is offering you $20k you can always try to sell it privately from now until the Telluride arrives for more than what the dealer is offering.
 
OP
Mike_S.
Messages
67
Likes
6
Location
Fishkill, NY, USA
Thread Starter #3
Well since you know the dealer is offering you $20k you can always try to sell it privately from now until the Telluride arrives for more than what the dealer is offering.
I have not gotten a formal appraisal yet that us just an Ave. KBB value for my truck i used as an example. And maybe i could get a little more if i private sell it but it would not offset the added NYS Sales tax i'd have to pay if paying all cash for the new T-Ride.
 

Krug

Member
Messages
244
Likes
73
Location
Bristol, WI
#4
I think what the dealer said is fair because vehicles will continue to depreciate. Try getting an offer with Carmax to see what they give you.
 
OP
Mike_S.
Messages
67
Likes
6
Location
Fishkill, NY, USA
Thread Starter #5
I think what the dealer said is fair because vehicles will continue to depreciate. Try getting an offer with Carmax to see what they give you.
well Like i said, I do this for a living every day forecasting the future value of our Electrical services. Our bids on Public work must be good for 90 days before award and when awarded the Contract is what it is, no matter what the cost of Copper, Steel or any material cost, if it the cost rises, you eat it if it falls, you made money on your bid. Why should this be any different? If you want my business give me the highest bid for my trade (and hold it for 90-120 days) and give me your best price for the T-ride and we have a deal... As a consumer, I think that is fair! No bait and switch.
 

Krug

Member
Messages
244
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73
Location
Bristol, WI
#6
well Like i said, I do this for a living every day forecasting the future value of our Electrical services. Our bids on Public work must be good for 90 days before award and when awarded the Contract is what it is, no matter what the cost of Copper, Steel or any material cost, if it the cost rises, you eat it if it falls, you made money on your bid. Why should this be any different? If you want my business give me the highest bid for my trade (and hold it for 90-120 days) and give me your best price for the T-ride and we have a deal... As a consumer, I think that is fair! No bait and switch.
I completely understand what you're saying and totally on your side. If it was my guess, I'd say perhaps vehicles depreciate at a higher rate.

Even when we were pricing out tankless water heaters, our estimate was only good for 30 days because they can't guaranty the cost for any longer than that.
 
Messages
33
Likes
13
Location
Minneapolis, MN, USA
#7
Good luck, same situation here. Your not going to get a trade in estimate for time of delivery.

my dealer said they will land in the blue book range at time of trade so I know about where I will end up. If they shaft me, I walk.
 
OP
Mike_S.
Messages
67
Likes
6
Location
Fishkill, NY, USA
Thread Starter #9
A dealer can’t nor should they be expected to give you a guaranteed trade in value 13 to 16 weeks prior to trade in. Your mileage at the time of trade is directly related to the value of the vehicle. Be reasonable.
I think i am being reasonable. All the details would be spelled out in the contract with a mile limit (just like a lease would) or any damage and would be voided. If they guarantee the best money for my trade, we can go into contract and order my vehicle. Why should i fork over a grand in "refundable deposit" and they give me a $20K trade estimate and then they can switch it up and give me say $18 k 3-4 months from now. Just trying to protect my "reasonable" interest is all. As i gave my example in construction we have to forecast future value of material and labor and place out bid on a project...and hold that # for months... Why should this be any different?
 
Messages
33
Likes
13
Location
Minneapolis, MN, USA
#10
I think i am being reasonable. All the details would be spelled out in the contract with a mile limit (just like a lease would) or any damage and would be voided. If they guarantee the best money for my trade, we can go into contract and order my vehicle. Why should i fork over a grand in "refundable deposit" and they give me a $20K trade estimate and then they can switch it up and give me say $18 k 3-4 months from now. Just trying to protect my "reasonable" interest is all. As i gave my example in construction we have to forecast future value of material and labor and place out bid on a project...and hold that # for months... Why should this be any different?
Because this is war - people are competing for these cars at a fierce level and right now your proposition is a bad one from the dealers side.

You should just wait until demand levels and dealers have a few to pick from on the lot.
 
OP
Mike_S.
Messages
67
Likes
6
Location
Fishkill, NY, USA
Thread Starter #11
Because this is war - people are competing for these cars at a fierce level and right now your proposition is a bad one from the dealers side.

You should just wait until demand levels and dealers have a few to pick from on the lot.
How is it war if you are ordering one? I'm not going to settle for something i don't really want...color or package. I don't see myself paying over sticker for any car just because it hot right now and its on the lot... "Better get it before its gone" mentality...
And it may be bad idea for them? Just because it's small car company and they can't keep up with demand doesn't mean there isn't local competition for your business. It's business 101. Do the right deal with the customer they tell a friend and so on. Been that way for hundreds of years...

Not sure why anyone would not ask for this kind treatment if ordering?? Whether the Dealer accepts this deal is another story of course, as they may think the have the upper hand. Which they do and they don't as i see it. Hey i can just walk away and buy a Chevy Traverse... i wouldn't but they don't now that. It almost always is a buyers market and that is a fact!
 

Stavmar

New Member
Messages
3
Likes
4
Location
Dallas, TX
#12
Cars are not commodities like construction raw materials are. This vehicle is in high demand and their is no supply. Until that changes you will have to do what the dealer asks or you will have to walk away and wait. For each buyer like yourself, and myself, you have to know what it is worth to you.

Negotiation of your trade in makes sense within 30 days of the transaction, sometimes 14 days. That is the only leverage you have. But why would any dealer guarantee something when it won’t be theirs for months? That is bad business when there are several others that want the SUV.

This industry is not construction, the relationship between business and buyer is not the same because you are building a customer solution in construction, heavy customization with unique solutions for their bike out. You are not sectong from pre fabricated choices and a limited supply of them. A car is limited by manufacture supply and is rarely dictated by macroeconomic influence. However, when demand is high for a vehicle then the economic models become stressed and we are where we are with the Telluride, a sellers market where the buyer can only walk away and wait for negotiation.

When I was lucky enough to put my name on My Telluride, replacing someone else’s deposit, I immediately stated I don’t want to pay for certain options because I didn’t want them. The response was, we have 10 other buyers behind you who will pay for it; sounds like BS, but when I went in to buy my Telluride, my name was listed on top on his office window, in erasable marker, with 14 names underneath looking for an SX AWD. It was crazy, but that is where the market is for this awesome vehicle.

think of the folks that have paid more then MSRP, which is insane. Then you have others paying at MSRP, like me, with a sour taste in my mouth. But I needed the car, due to a total loss in vehicle in the family, and I wanted the best on the market. It hurt the wallet but the car is very nice.

the dealers owe you nothing. They are taking advantage of the market and will continue to do so until the supply changes. But demand will be high for the rest of this year, the 2021 model is what will affect supply and of course KIAs throughput. Things that only KIA controls.

Until then, you will never a get a good deal and while your vehicle can be priced at Autotrader or Carvana for a market estimate, it is null and void 10 days after it is turned in. Cars don’t hold value and 3-4 months is a lot of time to see that depreciation happen, this the dealer is not going to promise anything, because they don’t have to.

MS
 
OP
Mike_S.
Messages
67
Likes
6
Location
Fishkill, NY, USA
Thread Starter #13
Cars are not commodities like construction raw materials are. Of course a complete car not a commodity but that is not my point... We in construction have to guarantee our pricing for the "finished product" 2,3,4 months out before a contract is even awarded and with final construction out over a year sometimes. If i have to wait for your finished product for few months, then you should be able to forecast within a $1000 say the worth of my vehicle. Plenty of data out there to establish a future price. This vehicle is in high demand and their is no supply. Until that changes you will have to do what the dealer asks or you will have to walk away and wait. For each buyer like yourself, and myself, you have to know what it is worth to you. Sure... but i would simply say NEXT DEALER PLEASE! And that's what i did. I was in no rush to buy, so if you don't agree to my terms? I say Next! No sale for you. However, i found great dealer 1500 miles away with a truck i wanted and we made the deal slightly under with some incentives. Now would he have made the same deal if i ordered my spec model through him and gave me a solid bid on my truck? I can't say as we didn't need to go down that road but i'd like to think they might have know the buying experience i received from this dealership. So with that, these other dealers lost a sale... And i know 100 sheeple are lined up behind me to settle for and buy what ever is on the lot, just because it's hot... I was not that guy... i will always say NEXT!

Negotiation of your trade in makes sense within 30 days of the transaction, sometimes 14 days. That is the only leverage you have. But why would any dealer guarantee something when it won’t be theirs for months? That is bad business when there are several others that want the SUV. like i said above...No rush... They just lost a sale...

This industry is not construction, the relationship between business and buyer is not the same because you are building a customer solution in construction, heavy customization with unique solutions for their bike out. You are not sectong from pre fabricated choices and a limited supply of them. A car is limited by manufacture supply and is rarely dictated by macroeconomic influence. However, when demand is high for a vehicle then the economic models become stressed and we are where we are with the Telluride, a sellers market where the buyer can only walk away and wait for negotiation. Hmm...may not agree totally with all that being we ARE building a "product" just as a Car Mfr is building a product for a customer. Raw Material for construction has the same supply and demand influences (Think steel tariffs, copper escalation.. ) Plus Labor factors... There is just is not enough qualified labor to meet the needs of all the projects to be built. We should be able to demand a premium for our services but that is not the case. In construction, Its kind of reversed as the Customer is really the seller here with a project and holds command in the Bidding process looking for lowest most responsible bidder. So this is different to that extent it being sort of a seller's market. But for me as a Buyer i would never pay over Sticker and i would demand a fare trade or no deal.

When I was lucky enough to put my name on My Telluride, replacing someone else’s deposit, I immediately stated I don’t want to pay for certain options because I didn’t want them. The response was, we have 10 other buyers behind you who will pay for it; sounds like BS, but when I went in to buy my Telluride, my name was listed on top on his office window, in erasable marker, with 14 names underneath looking for an SX AWD. It was crazy, but that is where the market is for this awesome vehicle. True... I heard the same thing and look where it got those dealers. A lost sale.

think of the folks that have paid more then MSRP, which is insane. Sheeple! Nope Never happen. When I was looking to buy The Hottest Super Sedan a 2009 Cadillac CTS-V Dealers were asking over sticker and told me That the price and that i could not even test drive it... WTF? NEXT! I Just kept looking and found one for $6000 Under sticker. Then you have others paying at MSRP, like me, with a sour taste in my mouth. But I needed the car, due to a total loss in vehicle in the family, and I wanted the best on the market. It hurt the wallet but the car is very nice. And that is what may get some people like yourself in NEED of a vehicle... But even at sticker this was a tremendous value. But in no way the only value in the segment and by my simply asking for a fair deal on my truck trade within a specified a short time frame of a few months in the order cycle, i didn't think that was too much to ask to gain a new customer and possibly other new referred customers... That is how business is done! Not some smug idea that they are only dealer in town and can ask what they want ,on their terms...take it or leave it. So to justify this in you statements that this is just the way it is? Nah, It Ain't.

the dealers owe you nothing. True and neither do i... So give me the best deal or i walk, still works ;)They are taking advantage of the market and will continue to do so until the supply changes. But demand will be high for the rest of this year, the 2021 model is what will affect supply and of course KIAs throughput. Things that only KIA controls.

Until then, you will never a get a good deal and while your vehicle can be priced at Autotrader or Carvana for a market estimate, it is null and void 10 days after it is turned in. Cars don’t hold value and 3-4 months is a lot of time to see that depreciation happen, this the dealer is not going to promise anything, because they don’t have to. Again... If they truly wanted my business, they could have figured by market data what my truck's estimated value would be by the time my new T-Ride landed on the Lot. They chose not to... And as you say they could because so many people just had to have it... And i chose to buy somewhere else because i could. That's what makes the market.

MS
 


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