An Easy Choice...

I had a great loan offer show up with a 3 months no payment loan at 2%, and was looking to save a little cash as we are gonna need a new home AC unit this year. I am also getting pretty close to needing new tires ($850), so in all buying a brand new truck was going to put almost 3 grand in my pocket (I usually get a new truck instead of paying for tires). The black book trade on this 13 is almost unbelievable - $32.5K on average retail (and mine is flawless). So I set my sights on a nicely loaded Sierra with a 6.2. With current deals and trade, I could pay it off in 4 years with the same payment I have now - and I still owe 2 years on my Avy. 2 more years for a truck 4 years newer - a no brainer right? Well that's what I thought...

It was a summit white SLT Texas Premium 4x4 with driver package, 6.2, heated wheel, roof - nicely loaded, and a good lookin' truck. They were asking just under $47K - about 10K off. Getting in the cab of the Sierra, the first thing I noticed was all the cheap looking smooth black plastic. Its everywhere. On the sunroof controls, the doors, and all around the screen. I know its a truck, but still. I loved the huge amount of storage, all the electronics (including DIC), and the plugs. I could put 2x as much in the console easily. I got in the back to check the room, and found it to be larger, but without AC vents. The fronts look big enough to hit back there, but that means less on me. I looked at the open bed and calculated at least another grand to get a cover. Backing it out, the first thing I notice is the incredibly annoying seat alert. 3 times just driving around lot to exit. I'm sure I could turn it off...

When I floored it from a stop as directed, she broke loose easily laying a long grub. Great power, but maybe not as much as I expected - definitely faster. Upon getting up to 50 mph, I feel a distinct vibration on the wheel all the way through 75mph - is it the dreaded shake I have heard about for years on this gen? Don't know if its the Goodyear Eagles or the driveshaft, but it is noticeable. Not a fan of those tires - even my alenzas have been pretty good for stock. I notice quite a bit more road and wind noise - funny cause the salesman was like, "See how quiet these new trucks are? Probably much quieter than yours..." I just laughed. Not even close. The turning radius was quite good for its size. Then we pulled back into the dealership, and I saw a small crowd of employees gathered around my truck that dispersed as we pulled up...

The Avalanche gleamed.

I quickly made up my mind. I told the salesman thanks, but there wasn't enough there to make me switch. I hopped in the black diamond, apologized to her for my wandering eye, and cruised right home to start looking for tires. So smooth and quiet - I must be getting old like Eastwood in Grand Torino. I hate missing out on a cash in, but I can't do it. Moral of the story - there is a reason they hold their value so much...

Glad you made that decision. Your first argument for getting a new truck sounds like someone who tells themselves "I'm always going to have a car payment, so why not get new?" That could be looked at in another way....spend $850 on tires or pay for two extra years XYZ amount of dollars extra to drive new plus increased property taxes and insurance etc. I bet it's way more than $850.
My father taught me decades ago how to save money by saving cash for a new vehicle then buy outright with no payments but then you put money aside as if you were making car payments and when your current ride is worn out you have cash to buy new again without paying any interest.
You should consider when your AV payments are done you keep putting the payment aside and avoid car lots until you have money saved up to buy a newer vehicle.

BADalanche said:

I had a great loan offer show up with a 3 months no payment loan at 2%, and was looking to save a little cash as we are gonna need a new home AC unit this year.

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Good choice!  Keeping the truck - as long as it suits your needs - is a far better decision than a new vehicle in the long run. My son was driving my Avalanche the other day and commented how it needs work but not to ever get rid of it. (My 2006 has 167,000 miles and is looking at a new transmission very soon.)

As for your new AC unit, look at the HERO program. We used it last year to replace our 30-year-old leaking home heating and cooling system. There was no money out of pocket and we'll pay over the next five years through our property taxes.  https://www.heroprogram.com/

I'm a realtor in town; check out the HERO program before signing on the dotted line. It may work for some; but if you move you can not pay off the HERO without a pre-payment penalty and the interest for the HERO program is well over 9%!

9% interest? I'm paying 4% for my AC unit.

Vaeagleav said:

My father taught me decades ago how to save money by saving cash for a new vehicle then buy outright with no payments but then you put money aside as if you were making car payments and when your current ride is worn out you have cash to buy new again without paying any interest.

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My pappy taught me the same lesson, with a little twist - I "borrowed" the money from myself, and paid myself the interest on the "loan" - I used the prevailing bank rate at the time (usually higher than dealer financing) and added a couple of points.  Takes a little discipline to write yourself a check for the loan payment to yourself, but, I haven't financed a vehicle in over 30 years and saved a couple bucks along the way.

Was the truck you looked at a 2016 or 2017?

When I sat in a new 2017 and checked it out there was significantly LESS room. The headroom was far less than my girlfriends 2013 Silverado and my '03 Avalanche.  That 2017 we sat in had the same center front seat that folds down into a console and the console was about the same size as in her truck but the width it gave you in the seat was far less. Was less than impressed.

Rodney

It was a 2017, and it had more room than my Avalanche I got to say. Just not as good overall IMO...

As for paying yourself first and saving, I get it. But you gotta realize that ideology came from times when loans were at a MUCH higher rate than what is available now. Money is almost free @ 2% if your credit is good. By the time I save 6 years for a $45K truck, it could be $55K or more - just look at what has happened to prices over last 6 years. Even if its only $50k, you making $5K on your savings? Either way the money is coming out of your pocket each month, so why wouldn't you want a new truck now at a lower price? The difference in price vs cost of loan interest makes saving the loss. If you start saving the minute you buy a new truck for the next one - well that's still a truck payment. Front loaded or back loaded its the same thing. My main motivation for all this is the incredible resale value of the Avalanche - a real rarity in modern vehicles (hummer and toyota FJ are similar).

In any event, my Avy is mint, and I can see myself holding on through another set of rubber. I really love this truck...but it will cost me money...

I understand what you are saying BADalanche and times do keep on changing and ideas can change from year to year.
My parents were raised during the Great Depression and back then you didn't buy anything unless you could pay for it and you had to decide between needs and wants. Their theory was if you had your money in the bank it could be used for medical expenses, weddings, home emergencies etc. if needed vs. tied up in a car loan. They also invested their money into stocks and bonds which grew at faster interest rates. I did see one time that dad broke his own car buying rules and bought a new car on payment because Oldsmobile was offering 0% interest on new cars at the time and dad figured he could keep his money in the bank making over 10% interest at the time so he made money in the long run.
I know too that some people say never buy a new vehicle because they loose so much of their value when you drive it off the showroom floor. They buy a gently used vehicle and let the first owner take the depreciation hit. That may be one way to escape the high cost of new vehicle ownership? I on the other hand have had bad luck with used vehicles and hate to inherit someone's problem.

Look at the Denali model and se if you get less plastic.

Its the same. I guess my avy has black plastic around HU/AC controls too, but it just didn't stand out as much since the overhead console on mine is gray, and the screen is smaller...

Ok Is all Denalis "DENALI ULTIMATE"? or is Ultimate a step up?

Here is some info for you Stefan N.......

http://www.gmc.com/gmc-life/trucks/gmc-unveils-2016-sierra-denali-ultimate.html