What's the point of buying a GM big body SUV new?

"Supreme Chancellor and Glorious Leader SaveTheIntegras" (jegoingout) 01/05/2019 at 09:54 • Filed to: None

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I bought a 2015 Escalade Platinum, the fully loaded nice truck,  for $49,000 with 25k miles on it; it’s has a clean fax, 1 owner, consistent service records at a Cadillac store. The MSRP back in 2015 was $99,082.....and I own it for as near as make no difference half that.

We buy a lot of the full sized GM SUV’s and every time I nearly throw up at the depreciation they suffer. 

Nibby > Supreme Chancellor and Glorious Leader SaveTheIntegras 01/05/2019 at 09:58

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can you give me $50k

E90M3 > Nibby 01/05/2019 at 10:13

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Could I? Yes. Am I going to? No. 

Jarrett - [BRZ Boi] > Supreme Chancellor and Glorious Leader SaveTheIntegras 01/05/2019 at 10:16

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The same people who buy a new Benz, but likely a bit older :)

pip bip - choose Corrour > Supreme Chancellor and Glorious Leader SaveTheIntegras 01/05/2019 at 10:17

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almost all i’m guessing are leased from new.

so the only ones that “lose” are the lease companies i guess

TheRealBicycleBuck > Supreme Chancellor and Glorious Leader SaveTheIntegras 01/05/2019 at 10:24

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What’s the point of buying any car new? For me, it’s the warranty. That being said, w e’ve purchased exactly two cars new. One was for my wife and we had to have something absolutely reliable. The other was my WRX. The WRX had the engine replaced under warranty, even though it was really the dealer’s fault. They overfilled it with oil. The warranty meant they could blame it on Subaru and I wouldn’t have had to take them to court to get them to cover their mistake.

We may go with a Certified Pre-Owned for the next car. It depends on what my wife wants.

Jarrett - [BRZ Boi] > pip bip - choose Corrour 01/05/2019 at 10:24

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Look at the least rates on these bad boys! Over $1400 a month (CAD) for 48 months.

The Finance rates for comparison are about $1550/month

I guess the leasing companies prevent losing by having bigger than average lease lengths.

ITA97, now with more Jag @ opposite-lock.com > Supreme Chancellor and Glorious Leader SaveTheIntegras 01/05/2019 at 10:27

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I think they’re a lot like full-size trucks in that no one pays anywhere close to MSRP new after the rebate game and negotiation . I’d be surprised the that E scalade actually rolled off the lo t for much more than 80k new . Buying it wholesale for 50k 4 years later doesn’t strike me as that unusual for used luxury car.

Jarrett - [BRZ Boi] > TheRealBicycleBuck 01/05/2019 at 10:29

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In the case of your WRX, and my BRZ* , they just refuse to depreciate. Didn’t make sense to buy used to save $4-5000 on a 3 year old car.

*Sporty cars don’t appear to depreciate as fast in CAD-land as they do down south. Miatas included -.-

Spanfeller is a twat > Supreme Chancellor and Glorious Leader SaveTheIntegras 01/05/2019 at 10:33

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People that buy new trucks and don’t use them for a business probably get bored of them after three or four years. 

Jayhawk Jake > Supreme Chancellor and Glorious Leader SaveTheIntegras 01/05/2019 at 10:36

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If no one buys new there’s no used market.

If you’re in a position to drop $100k on an Escalade I doubt you truly care about depreciation.

DipodomysDeserti > Supreme Chancellor and Glorious Leader SaveTheIntegras 01/05/2019 at 10:38

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Weird that the SUVs depreciate so much while the pickups don’t.

TheRealBicycleBuck > Jarrett - [BRZ Boi] 01/05/2019 at 10:38

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You’re right there. When I was shopping, I found one dealership that had a WRX that was one year older, had been beaten on (lots of mods), and had 15,000 miles, and they wanted  $1,000 less than a new one.

dogisbadob > Supreme Chancellor and Glorious Leader SaveTheIntegras 01/05/2019 at 10:49

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Doesn’t mean the original owner paid 99k for it! Most likely paid like 70-80k for it

BaconSandwich is tasty. > TheRealBicycleBuck 01/05/2019 at 11:04

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There seems to be similar stories here about Toyota trucks.  If the price difference is only a few thousand on a $30k vehicle, it might make sense to buy new.

wafflesnfalafel > Supreme Chancellor and Glorious Leader SaveTheIntegras 01/05/2019 at 11:06

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yeah - I am surprised they sell so many new. The fairly lightly optioned Tahoe LT that I would get is over 58k ... Sure, if you are reasonably wealthy it’s not a big deal, but even for average upper middle class that is a lot of coin.  I need to win the lotto.

FTTOHG Has Moved to https://opposite-lock.com > Supreme Chancellor and Glorious Leader SaveTheIntegras 01/05/2019 at 11:08

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Couple things - first they don’t sell these at MSRP so it was probably more like an $80-90k SUV but that’s still a lot of depreciation. Second, the Subrubans seem to hold their value (vs price paid new ) pretty well compared to the GMC and Caddy versions. 

ihm96 > Jarrett - [BRZ Boi] 01/05/2019 at 11:09

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1400 a month for that? I could get a GLS lease for 900-1000  and be in a nicer better driving 7 seater, that seems crazy

Supreme Chancellor and Glorious Leader SaveTheIntegras > ITA97, now with more Jag @ opposite-lock.com 01/05/2019 at 11:22

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He paid 100 OTD

Supreme Chancellor and Glorious Leader SaveTheIntegras > dogisbadob 01/05/2019 at 11:22

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His paperwork says 100 OTD

nermal > Supreme Chancellor and Glorious Leader SaveTheIntegras 01/05/2019 at 11:22

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A 2015 is 4 years old now. You can buy a new one for $5k off sticker without even trying, closer to $10k if you work the dealer a bit.

50% residual value after 4 years really isn’t that bad, especially for a “luxury” vehicle. 

The Dummy Gummy > wafflesnfalafel 01/05/2019 at 11:26

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This combo makes me laugh ‘reasonably wealthy’, no you got to be full on wealthy to afford a 60k car.

Spamfeller Loves Nazi Clicks > Supreme Chancellor and Glorious Leader SaveTheIntegras 01/05/2019 at 11:35

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If you really want to question life and people... go look up late model GMC Yukon Denali XLs.

Carmax is asking $49k for a ‘17 with 32k miles. So they’ve got be in the 30's at auction. 

Monkey B > Supreme Chancellor and Glorious Leader SaveTheIntegras 01/05/2019 at 12:01

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we need those people to keep buying them new for those of us that want the used one.

UnderSTeerEnthusiast - Triumph Fanboy > The Dummy Gummy 01/05/2019 at 13:07

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Define “wealthy”. If your someone who’s maybe got a significant other and no kids and you both work even decently paying jobs, and you’re smart with your money, then I don’t think it would be that hard. Now if you’re the same situation with kids and other liabilities and things you need to spend on than sure, you’re probably never going to buy a $60k car new. 

HoustonRunner > Supreme Chancellor and Glorious Leader SaveTheIntegras 01/05/2019 at 14:16

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Who pays sticker for one of those?

HoustonRunner > Supreme Chancellor and Glorious Leader SaveTheIntegras 01/05/2019 at 14:19

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Well, that doesn’t make me feel great about my purchase 16 months ago.  2015 Suburban LTZ, so fully loaded, but still less equipped than the Caddy. 50k miles and I paid about $5k less OTD. I was in a bit of a pinch sice it was right after Harvey in Houston and the dealers knew they didn’t have to budge on pricing.

i86hotdogs > Supreme Chancellor and Glorious Leader SaveTheIntegras 01/05/2019 at 14:21

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My sister came to me looking to buy either of the three GM long boys. I told her to find a pre-owned one for much less. She bought a fully loaded 25k mile CPO Suburban for $39k. Previous owner leased it for 3 years, kept it under the mileage allowance , and had a clean history. With the exception to Mr. Chancellor here with the purchased Escalade , I always see these depreciated vehicles come from leases.

The Dummy Gummy > UnderSTeerEnthusiast - Triumph Fanboy 01/05/2019 at 15:47

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I n all situations you would need to be wealthy to afford a $60k car, but each person may need more than the next due to higher expense. You can convince yourself otherwise, most Americans do, but you have to have significant capital/inflows to afford a $60k car.

It still blows my mind that the US new car sale is $35k when household income sits around $65k . But I guess some people love being in debt forever.

Nibby > E90M3 01/05/2019 at 15:56

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ok ok fine

$49,999

Carbon Fiber Sasquatch > Supreme Chancellor and Glorious Leader SaveTheIntegras 01/05/2019 at 21:39

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2015 was the first year of the current design generation. Somebody wanted the new look and was willing to pay for it.

Lumpy44, Proprietor Of Fine Gif > Supreme Chancellor and Glorious Leader SaveTheIntegras 01/06/2019 at 18:53

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Is it because the financing on used is such a high % compared to new at 0%?