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How not to lose my ass on trading trucks?

Discussion in 'The Lounge' started by 75-K5, Apr 10, 2005.

  1. 75-K5

    75-K5 3/4 ton status

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    OK first let me say I am extremely happy with my new 2500HD, except for the drivetrain. I really wanted a diesel-equipped truck but my mom couldn't see past the extra $5000+ added to the price tag. I've already calculated that if I had a diesel I would have saved over $100 in fuel in a little over a month, assuming 20mpg. I know the Duramaxes don't get this type of mileage but the Cummins diesels do.

    Anyway, regardless of the reasons, I want to weigh my options on ordering a 2006 Dodge 3500 dually with a CTD and G56. I was quoted just under $30k for a base model 2005, but I'm sure the 2006s will be higher priced and I won't be able to put the deal together before the 2005 deadline comes.

    I am probably going to have a hard time selling my truck because it is also a base model (manual locks, windows, transmission) and a regular cab. I doubt any dealer will give me what it's worth for trade-in value. The sticker was right at $30k and I got it for $26k. $2000 of that is for a 7 year/100k mile extended warranty, however, so the truck actually only cost me $24k. I am able to get a refund on my warranty since it hasn't been 60 days yet.

    My current loan balance is $26,109. After my first payment goes through it will be around $25,7xx. I could get it down to $23,7xx if I got a refund on the extended warranty. I want to know first of all if the trade-in/sale value added by the warranty would be as great as the cost of it. Not only in monetary value, but also in ease of sale. How many people really weigh extended warranties in the value when shopping for a used truck?

    KBB values for 2005 aren't out yet so I don't really know what my truck is worth right now. I have to act fast on the warranty, however, since the deadline is drawing near to cancel it. I'm leaning towards getting the refund so I owe less on the truck and will hopefully break even when I sell it. If I cannot get as much out of the truck as I owe on it then it's pointless to sell.

    I guess my main question through all this rambling is whether the warranty is worth it or not concerning sale value. Also, should I try to sell it ASAP before major depreciation hits or will I be better off waiting until October or so when I have more of the loan paid off (I'm paying an extra $100 on the principal each month)? By October, though, the truck will be 7 or 8 months old and probably have 10,000 miles on it, as opposed to now when it's basically brand new and has under 3,000.
     
  2. Hossbaby50

    Hossbaby50 3/4 ton status

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    I think there are issues with the G56 tranny and Dodge is not currently sending any trucks out with the 6 spd manual. Might be something to look into and find out WTF is going on and what your options are.

    Harley
     
  3. sled_dog

    sled_dog 1 ton status

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    I don't htink you will lose your ass TOO much. A couple K maybe. Sucks but thats the way it is. What kind of mileage you getting with your rig? My dad gets about 12 with his extended cab 8 foot bed HD with the 6.0.
     
  4. 75-K5

    75-K5 3/4 ton status

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    I know right now they aren't accpeting orders for G56 trucks. It's said they will be reinstated for the 2006 model year. Either way, I'll wait until they're offered again before looking into it seriously.

    I know I'll probably lose a little bit, but my goal was to keep my payments around the same as what I'm paying now. I can afford to make $50 or so more a month, but that would reduce my options for paying it off early by adding principal. I get an average of 13mpg. In Bloomington where it's hilly as hell I only get 10, but in Anderson where it's flat I get 13. I average 15-16 on the highway.
     
  5. sled_dog

    sled_dog 1 ton status

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    I really doubt you will be able to keep the same payments. If you were gonna get another gas truck I'd say you could but the extra diesel expense I don't think it will happen.
     
  6. 75-K5

    75-K5 3/4 ton status

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    Well, I was using that term loosely. I meant I want to keep it around the same total cost. I didn't make a down payment on this one, but if I sell a couple other trucks I'll have the money to do that, plus I can use the extra $100 I'll save on gas per month to go towards payment too.
     
  7. 75-K5

    75-K5 3/4 ton status

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    So what about the warranty? Would it be worth it to keep or would it not make a big enough difference in the sale price? I've gotta cancel it ASAP if I'm going to. That would knock $2k off my principal.
     
  8. zcarczar

    zcarczar 1/2 ton status

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    I would keep your truck, I am/ was in the same boat as you. I really want a diesel, but cant afford the cost. I would really like to have a 6-spd too, but again you cant find a chevy with a 6-spd diesel anywhere. There are some things you can do too to help with fuel mileage like a flowmaster, and a higher flowing intake system, and supposedly an ECM re-flash by an after market tuner will help also. I know the intake and exhaust helped on mine, plus it sounds meaner.

    Also the likely hood of you getting 20k for that truck as a trade in is slim to none, 04' duramax's are only bringing in about 28-30,000 as trade in's at the dealership i work at, and those are for crew cab short bed 4x4 LT's.

    How many miles do you have on your truck? I know you havent had it very long, and they do take a few thousand miles to "break in" and start getting semi decent mileage. I have put close to 12k on mine in the 7 months ive had it.
     
  9. 75-K5

    75-K5 3/4 ton status

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    I thought about that too, but even the most extreme of mods would only get me in the 15-16 city and maybe 19 highway range, and the cost of the mods would take a great deal of driving and fuel savings to justify. A diesel Ram would only cost a couple grand more than mine, and would get 20-22 mpg out of the box. Plus, I plan on doing an increased amount of towing once I build my trailer and start taking the K5 various places. A diesel will pull without a huge loss in mileage, whereas towing will make a gas engine's mileage drop like it's having a stroke.

    In the end, I'll probably end up keeping it but I'm still wanting to look into my options.
     
  10. miniwally

    miniwally 1/2 ton status Premium Member

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    I really don't think that you are going to see that much better milage with a diesel truck.
    I have an 05 Duramax with Alison and I get an honest 15 mpg around home. This is not really town driving as I drive 8 miles one way on highway and only have a 10.5 mile commute. I think it would be more like 14 or so for true around town driving.
    Highway I get about 18-19.
    I know that a manual will get better milage and the dodges do seem to get better milage but I doubt all of the claims of 20+ mpg from anybody driving a fullsize truck with a diesel.

    I wish now that I had a gas truck everytime I fill up because diesel is more expensive than midgrade gas here.
    I think that the slight milage difference pays for the fuel cost though.
    Then think about oil changes and fuel filters and you have a more expensive vehicle.
    I do however love the power and don't like driving my wifes 6.0 in her GMC truck becuse it now feels like a gutless wonder. It's really not though.

    I would hang on to the truck for a little while and trade in a few years when you can handle a larger payment or we know what gas prices are doing.
    Thats just my .02.
     
  11. PhoenixZorn

    PhoenixZorn 1/2 ton status

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    When you drove your truck off the lot, it depreciated in value by about 15-25%, or $5000 give or take... I'd be suprised if you could sell it on the street for 19k, and I know you get more money on the street than at the dealership.
     
  12. 75-K5

    75-K5 3/4 ton status

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    AAAAH, why didn't I get a Dodge in the first place? My parents were deathly afraid of the $5k price tag for a diesel, but wanted me to get an automatic ($1200) and didn't balk at the $2000 extended warranty. :surepal:
     
  13. afroman006

    afroman006 1/2 ton status

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    I have to say I seriously doubt the validity of anyone who claims 20+ mpg out of a cummins. My girlfriend drives a 98 2500 2wd with a 12 valve and 5 speed manual, and gets about 17 mpg tops, and that is prety much the most fuel efficient version of a cummins you will get. She does have a Banks Sidewinder kit though so that might skewer the numbers up or down. But, her mom has a bone stock 02 2wd 2500 24 valve and it gets 19 mpg tops, its an automatic. I think with some uber tuning 20 mpg is possible out of a cummins, but any more is just wishful thinking. Keep the truck you have, the only way to not lose money on getting a new vehicle is to downgrade, and no one wants to do that.
     
  14. Jonny-K5

    Jonny-K5 1/2 ton status

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    my dad has a 99 dodge 2500 2wd 24v cummins auto. bone stock engine with a free flow exhaust.
    gets 15-16 around town/towing 19 highway. when he took a cross country trip he averaged 20mpg, with a max of 21 and some change. 20+mpg is definatly possible with a cummins. the way you drive has alot to do with it.
     
  15. zcarczar

    zcarczar 1/2 ton status

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    Oh yeah, your 6.0 will tow just fine. My dad has a new duramax, he gets a new one every 6500 miles or so, but thats another story. But we went down to TDS, its about 150 miles away and my 6.0 used 1 gallon more gas than his duramax going down there, While I couldnt accelerate as fast as him, once I got up to speed I had no problems maintaining it. I think I ended up getting around 10 or 11 going down there, and i got about 8 coming home, but there is a BIG grade on the way back and I had to see how fast I could go up it so my mileage went down the ****ter. But I had no problem keeping up with the duramax.
     
  16. K5MONSTERCHEV

    K5MONSTERCHEV 1/2 ton status

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    Thats what I was thinking too. I would have jsut waited. I have seen duramax's with manuals, on ebay, but THATS IT!
     
  17. 75-K5

    75-K5 3/4 ton status

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    So what's you guys's thoughts on the extended warranty since I'll probably be keeping it? It would knock $2k off my principal and with the extra 4-5k i might get from selling a couple trucks I could also pay off a big chunk of the principal and maybe refinance to get a lower payment. I don't really like the idea of owing money on a truck after the warranty is over, though. But will I ever likely be in a situation where I'll need $2k worth of repairs done to it in the next 100k miles? Even with the warranty, there's still a $100 deductible on each repair visit. Many repairs I could probably do myself unless it's something electric. I think with impeccable maintenance and common sense I shouldn't run into any major problems. I already have a 3/36k drivetrain warranty and could possibly get it extended if I develop piston slap. I'm not seeing how the warranty is really worth it but I hate to drop it then end up needing it. :screwy:

    I'll just wait until it's paid off and then do a Cummins/nv5600 swap. :p:
     
  18. zcarczar

    zcarczar 1/2 ton status

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    You shouldnt need the warranty, you have a nearly bullet proof drivetrain. And if something where to go wrong these engines are super easy to work. Plus run some decent oil, and log everything and keep the reciepts so if something does come up, say at around 40k with the engine you can take it in and bitch and you might be able to get it fixed under warranty.
     
  19. 75-K5

    75-K5 3/4 ton status

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    Calling tomorrow about cancelling the warranty. Right now I could really use the extra dough.
     

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