I'm going through the process of shopping for a new Yukon. I am trading a 2015 that I bought in early 14 and looking at a 2018 Yukon Denali.

No need to steer me toward other vehicles or tell me I'm an idiot for buying new and trading frequently. I know that, but I like new trucks.

There aren't a lot of options to add on a Denali, but it seems like the ones on dealers' lots generally have sun roofs, rear DVD and other family friendly features. Of course I could order one, but that often nixes the best incentive offers due to the time frame.

The salesmen (honest folk that they are) quickly point out that those options will pay off in trade value. I call bullshit. I'd guess the bling features depreciate even worse than the base vehicle.

What's your opinion on the return value of an option like a sun roof, DVD, upgraded wheels, etc 4 years down the road? My guess is somewhere between zero and 50%. Any thoughts?

Thanks

quote:

My guess is somewhere zero and 50%

I wouldn't say 0 but I think that is a pretty good estimate.

Sometimes it's not that an option adds to the value so much as it can be subtracted from the resale. Many moons ago, before AC was pretty much standard, I didn't have it and at trade-in time $200 was dropped off the value.

I can't pull it up at the moment, but maybe try kbb?

Throw in your base vehicle, see what the trade-in price they list is, then add a couple features and see if it affects it at all?

Obviously not 100$ accurate but I think it could at least give you an idea of whether it "matters" in the industry.

If you are buying a Denali, I wouldn't buy one without those options. Yes it will hurt resale.

My 2007 TrailBlazer had a sun roof and I loved it. My new-to-me 2015 Grand Cherokee has about every bell & whistle except the sun roof and I don't care.

Wheels, OTOH, I think can add to "curb appeal." E.g.: When I was looking at the TrailBlazer I never took any particular note of the wheels, whereas the Grand Cherokee's wheels were definitely a plus.

A DVD I would not likely care about, one way or the other, but in-dash navigation is a plus, IMO. (A tablet-sized screen in an ideal, fixed position > a 4-5" screen in a cup holder or a vibrating dash mount.)

So I'd say it depends on the option.

Ask them how much that is helping the value of your trade, and ask why they are trying to screw you out of all that extra value!

You're correct that the Denali line offer few options that it doesn't already include. When I purchased my Denali HD Duramax I found that each dealer is different when it comes to the options they request for vehicle to place on thier lot. In my case I wanted cab clearance lights and only one dealer in the DFW area stocked these exclusively. Every HD at this dealer had the same options save for the rear entertainment system. It was about 50/50 for that option. I did make sure that my truck came with the gooseneck/fifth wheel package even though I doubt I'll ever use it but given that the option was only around $700 I felt that it would really help with trade-in or private sale value.

Some of these options are for your pleasure and enjoyment. I love sunroofs. I have a DVD player in my Pathfinder that I have never used. It will have no value at sales time.

I have never bought wheels for a car. Everyone I have ever bought came with them. I just don't see the attraction for aftermarket wheels.

Look at NADA for the value of add-ons for your vehicle.

quote:

Originally posted by mcrimm:
I have never bought wheels for a car. Everyone I have ever bought came with them. I just don't see the attraction for aftermarket wheels.

Not aftermarket, but optional OEM upgrades beyond the standard 20” aluminum wheels.

Varies by option, but I'd say on average closer to 0 than 50%.
Go look up one of the online used car pricing guides and put in your present vehicle. Then add or remove the options you have and you'll get a good idea of what they are worth on the used market.

I'd say that those options probably won't get you a much higher price, so maybe between 0% to 25% of the cost of the option. And the longer you own the car, the less the option will be worth in trade-in. Don't be fooled.

But here is the real point. Cars are depreciating assets, not investments. Stop worrying so much about what they may be worth later. What would those options return to you even at 25% of their cost? $600? Over three or four years? So what? Buy the car you want with the options you want. Just make sure you can afford it.

When you trade in a vehicle, the used car sales manager will "book it out" on a worksheet right from the dealer copy of the NADA guide and this will be the basis of the trade value. Some will give you credit for adds and some won't. He will also base the actual value off what he could buy the same vehicle for at wholesale auction. A combination of NADA book value and the going price at auction is what they will ultimately use to determine how much your trade is worth on any given day. The used car sales manager is basically buying inventory from his own new car sales department's transaction.

What happens from here is up to the new car sales manager. He may offer you that exact number for your trade in. He may also "over allow" for your trade to help make the deal work for you psychologically or to close the gap if you owe more than its worth, taking profit away from the new car you are buying. He may "under allow" also known as "stealing the trade" which adds profit to the new car sale if you own it outright or owe a lot less than its value.

The bottom line is, you may never know what your actual trade value was and it really doesn't matter. You should have an idea of what your trade is worth and what you are willing to pay for the new car before you go in. Never disclose any loan balance on your trade and tell them you just want to work out the cash difference between your trade and the new car. Once that number is agreed upon you can work out any payoff on your trade in. Any information you provide up front will likely be used against you. Make no mistake, this is an adversarial transaction.

quote:

Originally posted by jhe888:But here is the real point. Cars are depreciating assets, not investments. Stop worrying so much about what they may be worth later. What would those options return to you even at 25% of their cost? $600? Over three or four years? So what? Buy the car you want with the options you want. Just make sure you can afford it.

Very true. I know darn well that I'll lose 30-40,000 on the total value over 4 years. The depreciation of the options isn't going to change the big picture.

Buy the options that make you feel good every day you get in the car for the next four years. Forget any residual value. Buy a car with the options that you want that you can afford and enjoy it. On the flip side don't forgo an option you want and then regret it every day you get in the car for the next four years. And as you mentioned you are going to "spend" $40,000 over the next four years so what difference is $41,234 in the big picture?

I just bought a 2018 Yukon Denali. It has the ‘Ultimate Package’ — IE. every possible option. Wouldn’t change a thing.



The truck is going to depreciate. And yes, this one will depreciate MORE than an SLT model. But that’s just part of the game.

^^^^^^

I'm a bit concerned about the retractable running boards when caked with snow and ice.

That's a nice looking vehicle Copefree!! Enjoy

quote:

Originally posted by MNSIG:
^^^^^^

I'm a bit concerned about the retractable running boards when caked with snow and ice.

You can turn them off if desired. That way they stay tucked in.

^^^^^
Is that the Summit white, or the White Frost Tri-coat?