Not surprisingly, the implosion of the new pickup/SUV market now means that your '06 Silverado doubles in value every time you fill the tank. Large retail groups such as CarMax are reporting wholesale prices for big pickups have plunged 25% in the last three months alone. With trade-in values making up a significant factor in many new car transactions, dealers are finding themselves squeezed by more truck owners "upside-down" in their loans. With dealers unable to finance new purchases, they've resorted to desperate tactics — like leaving truck owners sitting their with their manhood replacements hanging out, unable to trade it in.
In a remarkably candid statement revealing where dealerships actually make their money, Poncho Redfern, president of San Francisco-based Thomason Auto Group, said
"...you can't outrun it in F&I. There's only so much you can honestly earn in that department. This wreaks havoc on the bottom line. We see people with $10,000 in negative equity.Thus the refusal to take full-size trucks and SUVs on trade at all by 10% of dealers nationwide (reportedly). Nor is the market shift limited to domestic offerings: In fact, four of the top six biggest value losers were imports, with the 2005 BMW X5 4.4i leading the way. Bruce for the loss! [ Automotive News (Sub. Req.)]
A dealer does not have enough room to help the customer out of it."