Future value \ depreciation curve.

[chadwick02]

Hi everyone,
I’m now considering buying a slightly used 07 tahoe (as opposed to an 05 which I thought I originally wanted). Seeing as how the 07’s are a significant chunk of change more than an ’05 (I’m looking at 07 LTZ’s priced somewhere around $38,000) I am wondering what peoples predictions/experience has been with the depreciation with these vehicles?

My dad’s been a chevy guy for life, but I’ve owned imports all my life (primarily acura). I’ve done very well keeping them for 3 or 4 years and then selling them with out loosing my shirt. I’ve usually been able to sell them for 60% to 75% of the purchase price.

I plan on keeping the Hoe for 2-3 years, then upgrade. I average about 12K miles a year.

I realize that a vehicle is not an investment. I guess im just looking for reassurance that my near $40,000 purchase wont be worth peanuts in three years… What have your experiences been?

Thanks!
Chad

 

[boostaholic]

These trucks hold their value quite well, plus you can take good care of it until my broke ass can afford one in 4 years :thumbsup:

 

[Rollin Thunder]

bought a 1999 2500 suburban in 2003, was a fully loaded (except 4wd) for 18k with 48k miles on the od. sold it in 2006 for my yukon xl with almost 200k on the OD, for about 6500 to a dealer as a trade. only other recent resale exprence i have is an older 87 k5 blazer fullsize, which i bought for fun for 3k and put 1k in to it and sold it for 5k, made a thousand bucks. but thats all i know for recent chevy sales to be more accurate i this market.

 

[Alex33]

I think in future years, as the Large SUV loses popularity, you'll see more depreciation than you would have in past years, but these are still good trucks and they do hold their value well. I was shopping for 95-99 Suburbans and clean, low mileage trucks still go for as much as 15-18k. Keep in mind these are ten year old trucks and that is a bit on the high side, but a good average is 10k-12kish. Not bad at all I would say.

 

[Canucklehead]

Good lease candidate

If you're only looking to keep it for 2-3 yrs and are worried about depreciation then you should look at leasing it. That way you know upfront what the depreciation is.

 

[Gambler]

:iagree:

 

[chadwick02]

If you're only looking to keep it for 2-3 yrs and are worried about depreciation then you should look at leasing it. That way you know upfront what the depreciation is.

Yea, i thought about doing that. I never liked the idea of leasing a vehicle, for a few reasons: I'm bound by the mileage restriction, and if I dont drive it as much as I could, i dont get a discount for low miles. When I buy it i can sell it anytime or keep it for longer, and I can modify the vehicle if I want, since it is mine. Also, with a lease you take a massive ammount of depreciation since it is brand new. By buying slightly used I am (i hope) saving on that first year of depreciation, which on the vehicles im looking at seems to be about $10,000 (+/-) I think. That is alot.

 

[Canucklehead]

A smart msn once told me to never buy a first year model anything. If you have to have it lease it. I've had my 07 for a year now and it's been in the shop more than my last Denali ever was. If you want an experts forcast on what an 07 will be worth in 2-3 years go get a lease quote. GMAC will tell you exactly what it's going to be worth. If you're only going to keep it 3 years and trade it what you've basically done is leased it anyways and paid the depreciation for the next owner. I got over the emotional issues of not owning a car years ago especially when it makes perfect finanacial sense.....I love my money more than I love my Denali.

 

[chadwick02]

A smart msn once told me to never buy a first year model anything.

Yep, I have experienced that and told my self I would never buy a first year model car again....
I guess i thought I'd give chevy a chance. Maybe I'm just getting impatient? I do have a supper good relationship with my local dealer. Their service department has been willing to bend over backwards for me in the past. I have no doubts that they will take care of any and everything.

 

[Rollin Thunder]

Yep, I have experienced that and told my self I would never buy a first year model car again....
I guess i thought I'd give chevy a chance. Maybe I'm just getting impatient? I do have a supper good relationship with my local dealer. Their service department has been willing to bend over backwards for me in the past. I have no doubts that they will take care of any and everything.

techneclly the first year from january 2007 is the second year of production.

gotta remember the gmt 900 (NBS) came out on JANUARY TENTH OF 2006. so in january 2007 they had a year to work bugs out. so any 2007 from 2007 is going to have the bugs worked out. :thumbsup:

 

[LAP TOP GAMER]

Mine was produced in late 06 and I have not had any problems with it.

 

[chadwick02]

techneclly the first year from january 2007 is the second year of production.

gotta remember the gmt 900 (NBS) came out on JANUARY TENTH OF 2006. so in january 2007 they had a year to work bugs out. so any 2007 from 2007 is going to have the bugs worked out. :thumbsup:

Wow! That is really good information to know. I will keep that in mind when I find something that looks like what I want.

Why on earth did they roll the model year out so early?? They must have been really pushing down at the production line...