Buying a 2010 clear-out Employee Pricing incentive SCAM

5861 Views 2 Replies 1 Participant Last post by Terrain, Aug 28, 2010

Discussion Starter · Aug 28, 2010

Hi All
I just bought today a "2011" equinox, LTZ, V6 AWD.

If you recently purchased a 2010 clear out and took advantage of the employee pricing you may have got taken for a ride....if you are planning on buying one of the remaining 2010 models...DON'T. This comment applies for Canadian's only as I don't know what pricing and interest rates are currently in effect in the US! I imagine this could similarly apply to the US folks too.

Here's why. I have been looking at the equinox for the past month. I was hesitating between the 4cyl or the 6cyl. When I was ready to pull the trigger the dealer let me take an Equinox home over night and have for an entire day. All along I was led to believe that the 2011's "weren't available yet" or "rare to come by" or "very limited on the different trim levels"...you most likely would have to order it and wait 4-6 weeks for delivery!!!

When I decided exactly what I wanted, trim level, int. color, ext. color, options ect... the sales person searched high and low. When it was finally determine that, that particular model was nothing available in a 2010 he all of a sudden realized that he had a bunch of 2011's right on the lot hidden out back and that other dealers had a bunch of them too!

Wait...it gets better and this is why you may have been taken for a ride buying a 2010 model within the past month or so.
1. Whatever amount of money you think you saved $1800-$3500 depending on the trim level....your vehicle is already worth that much less becasue it's now considered 1 year old and even if you went to sell it many years from now it will still be 1 year older and fetch that much less money.
2. Unless you paid for it in cash, what ever you think you saved you loose it back on the interest rate. Right now on 2010 models the finance rate is 5.79% on any term between 12 and 60 months. On the 2011's...the vehicles we're led to believe aren't quite avilable yet...is only 2.9% on a 48mth and 3.9% on a 60mth.

Basicay at the end of the day your payment will be virtually the same (within a few bucks) only you got stuck with a 2010 or you got a 2011.

I got the 2011 at 2.9% for 48nmth......and yes there are plenty around...they just don't tell you...and of course won't tell you of the lower interest rates on the 11's that would wash out the "employee pricing" savings your think you're getting on the 2010

Hope this helps anyone looking to buy a Equinox/terrain very soon. Insist on a 2011 and the better interest rate!

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Discussion Starter · #2 · Aug 28, 2010

Ok, agreed, SCAM was a little harsh. It's understood these guys want to get rid of the 2010's first....makes sense.

Also, everyones buying situation is different....weather you have the cash on hand, have to lease, have to finance and also if you're a "gotta have the newest latest and greatest" kind of guy or save some bucks at the end of season model. I get it.

I'll rephrase then. If you're looking for a new equinox/terrain...and lease rates are way to high these days to make sense over purchasing right out and you don't have a lot of cash on hand and will most likely resort to finance from some sort of bank, equity line of credit, or GM financing....be aware that the 2011 finance rates are much less than the outgoing 2010's finance rates...meaning you could very well end up with a same term payment being equal, slightly lower or at least close to the payment of an outgoing 10.

I wasn't knocking your new purchase...you did get a good deal. Just wanted to make others aware that 2011's aren't months away and that the lease rates are much better!
Enjoy your ride. I know I will

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Terrain

· #3 · Aug 28, 2010

I'm not sure I agree with you on all points either.

I got my (second) Terrain in July when you couldn't even locate an '11. And the Employee Pricing was the only way it made even a stitch of sense for me to trade a '10 on a '10... $4,000 off the MSRP went a long way to counter the depreciation loss I experienced. Luckily my other Terrain was a very low mileage loaded model so they gave me a pretty fair number on it as a trade. The difference in the interest rate over the term of the financing won't come near that $4,000 figure. I don't think I would have been any farther ahead to go with (ie wait for) an '11. Now if there was any difference in content, I might have thought twice.

Also, a year from now your '11 will have (potentially) the same mileage as my '10 so that could work in my favour in the end as well. I think people in the market for used value lower mileage over a newer year model.

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