Cancelled my SX reservation

[shamdog]

Hi all. First time poster here....

I reserved an SX Prestige package in Black Copper with Dune leather back in December. Last I heard, it was supposed to be ready by end of April, but I assume that's been pushed back because of factory closures. Anyway, because of covid and tougher financial situation (my pay being cut substantially), not to mention the fact that I don't know when I'll actually need a 2nd car, I decided to cancel my reservation and got my $1k back from the dealership (Denver area).

With the entire auto market imploding right now, I'd have to be totally nuts to pay anything close to MSRP for anything. As much as I would love a new Telluride, I can literally buy a certified 2019 Audi Q7 Prem Plus, Volvo XC90 T6 M, Acura MDX, etc with under 10k miles for $10,000 LESS than the Telluride. Plus, we're probably bound to see tons of cars coming off lease in the next few months in addition to bulk fleet sales which is just going to flood the market with used cars and reduce pricing even more.

So I'm just curious, how are you guys all thinking about the car market today, and would you drop $50k on a new Telluride right now, wait a few months, buy a used luxury brand for cheap?

 

[akdoh]

Hi all. First time poster here....

I reserved an SX Prestige package in Black Copper with Dune leather back in December. Last I heard, it was supposed to be ready by end of April, but I assume that's been pushed back because of factory closures. Anyway, because of covid and tougher financial situation (my pay being cut substantially), not to mention the fact that I don't know when I'll actually need a 2nd car, I decided to cancel my reservation and got my $1k back from the dealership (Denver area).

With the entire auto market imploding right now, I'd have to be totally nuts to pay anything close to MSRP for anything. As much as I would love a new Telluride, I can literally buy a certified 2019 Audi Q7 Prem Plus, Volvo XC90 T6 M, Acura MDX, etc with under 10k miles for $10,000 LESS than the Telluride. Plus, we're probably bound to see tons of cars coming off lease in the next few months in addition to bulk fleet sales which is just going to flood the market with used cars and reduce pricing even more.

So I'm just curious, how are you guys all thinking about the car market today, and would you drop $50k on a new Telluride right now, wait a few months, buy a used luxury brand for cheap?

Was your reservation with Arapahoe? You literally have the EXACT same as me - SXP Black Copper w/ Dune. I reserved mine 12/31/19, and they told me end of April/start of May as well.

I still wouldn't buy a premium brand - in fact i am getting rid of an Audi to get the Telluride.

 

[PaulD]

It's a smart decision. My wife and I cancelled our order back in early March for pretty much the same reasons as you. We're also questioning whether we really needed a 3 row SUV vs something a bit smaller.

the Audi Q7 is nice, but the lack of a spare tire puts me off of it given we'll use it for road trips. We'll look at a BMW X5 CPO as well as others.

 

[shamdog]

Mine was with Peak Kia. Reserved it late December for late April delivery. Don't get me wrong, I would still take a Telluride over one of the premium brands, especially given the feature set and high cost of ownership of Audis, etc. I just really struggle with the price difference, and I think it's going to become more severe in the next few months. If I can get a loaded low mileage CPO Audi or Volvo for mid to high-30s (which I think will be possible come late summer) vs Telluride at ~$50k, it just doesn't make any sense.

______________________________

 

[akdoh]

Mine was with Peak Kia. Reserved it late December for late April delivery. Don't get me wrong, I would still take a Telluride over one of the premium brands, especially given the feature set and high cost of ownership of Audis, etc. I just really struggle with the price difference, and I think it's going to become more severe in the next few months. If I can get a loaded low mileage CPO Audi or Volvo for mid to high-30s (which I think will be possible come late summer) vs Telluride at ~$50k, it just doesn't make any sense.

Only thing is the lack of warranty and the cost of repairs on ANY of the luxury brands.

Volvo - you're looking at a Super and turbo charged engine - not known at all for reliabilty.

Audi - is just a VW with super marked up prices. They lack a lot in the tech department. In fact your replacement parts will come in VW boxes/PN's with Audi stickers on them, and cost 3-5x as much. On our Q5 - our shocks are already leaking at 30k miles.... being that it is a lease this is all covered under warranty, but if outside of warranty - you're looking at thousands of dollars of worth for Audi parts. Alternatively - my VW GTI has ~100k miles on it - and has never had anything more than standard work/maintenance done to it.

There is a reason luxury brands lose their value massively and quickly.

 

[akdoh]

It's a smart decision. My wife and I cancelled our order back in early March for pretty much the same reasons as you. We're also questioning whether we really needed a 3 row SUV vs something a bit smaller.

the Audi Q7 is nice, but the lack of a spare tire puts me off of it given we'll use it for road trips. We'll look at a BMW X5 CPO as well as others.

To get an X5 down to ~40K - you will be looking at an X5 with ~40k Miles, and only saving 10K... Seems kind of a waste - TBH.

 

[jw_tx21]

Mine was with Peak Kia. Reserved it late December for late April delivery. Don't get me wrong, I would still take a Telluride over one of the premium brands, especially given the feature set and high cost of ownership of Audis, etc. I just really struggle with the price difference, and I think it's going to become more severe in the next few months. If I can get a loaded low mileage CPO Audi or Volvo for mid to high-30s (which I think will be possible come late summer) vs Telluride at ~$50k, it just doesn't make any sense.

It seems strange... I agree. But, you're comparing different animals. (1) The Telluride is not competing with luxury vehicles directly. (2) All the vehicles you listed have much tighter third rows that are borderline functional vs the Telluride. (3) You're comparing new vs used. Used luxury will always have major depreciation due to high expected maintenance costs, and used luxury will always be less than a new top trim Telluride, Highlander or Atlas.

You just have to make the decision based on the feature set you want. In the used luxury, you'll get a more powerful engine and performance, but you'll have higher maintenance costs. We've had this discussion a lot on the forum. If the total outlay is your concern, then get a lower trim Telluride like an LX or S. Same engine, most of the same features, and nowhere near $50k.

But, if you've never owned luxury before, go for it and learn. Go get a used Q7, XC90 or X5 and love it. I'll take your Black Copper!

 

[shamdog]

Appreciate all the thoughts. It's definitely worth spending some time thinking about, and the good news is I'm definitely in no rush right now!

______________________________

 

[Cmsharp]

Sorry to hear about your pay cut. Definitely a wise move considering everything with the economy. We have a sx awd ordered since January and hope to receive it by July. We haven’t taken a pay cut but did loose a lot of money “on paper”. Not too interested in any other models because my wife really wants the third row for long roads trips with kids. I hate flying anyway.

 

[kane]

Hi all. First time poster here....

I reserved an SX Prestige package in Black Copper with Dune leather back in December. Last I heard, it was supposed to be ready by end of April, but I assume that's been pushed back because of factory closures. Anyway, because of covid and tougher financial situation (my pay being cut substantially), not to mention the fact that I don't know when I'll actually need a 2nd car, I decided to cancel my reservation and got my $1k back from the dealership (Denver area).

With the entire auto market imploding right now, I'd have to be totally nuts to pay anything close to MSRP for anything. As much as I would love a new Telluride, I can literally buy a certified 2019 Audi Q7 Prem Plus, Volvo XC90 T6 M, Acura MDX, etc with under 10k miles for $10,000 LESS than the Telluride. Plus, we're probably bound to see tons of cars coming off lease in the next few months in addition to bulk fleet sales which is just going to flood the market with used cars and reduce pricing even more.

So I'm just curious, how are you guys all thinking about the car market today, and would you drop $50k on a new Telluride right now, wait a few months, buy a used luxury brand for cheap?

First of all well done Shamdog for not being emotional while buying a vehicle. We have to be practical considering the present economic conditions.
Moreover my thoughts about the auto industry is they are going through really tough times.
People will still be reluctant to buy new cars after Covid ends for almost 6 months to get back to normal lifestyle and jobs for those who have lost it during the pandemic.
Moreover these automakers will also be under tremendous pressure to keep moving their inventories. So they will be forced to sell cars at throwaway prices and lots of goodies.
All the hype and emotional quotient attached to any brand will be subdued after Covid ends.
I would suggest you to wait for a while for getting the best deals by Kia. If Corona virus finishes before year end, there might be Telly or any other Vehicle available at throwaway prices to clear 2020 inventory.

 

[Kirbo]

Hey @shamdog . I'm sorry to hear that this COVID craziness is hitting you guys. I think it's smart to cancel your car. We, so far, aren't affected financially, but we are waiting to buy a new car to see what's happening in the world. My guess is we'll buy in the next year or so.

For us, I wouldn't buy a used luxury vehicle. If I were buying used, I'd probably go for something like the Toyota over an Audi or Volvo. We used to own a Volvo XC70 and I loved that car. Holy cow, it was the most comfortable car I ever drove. But once it was around six years old, things started going wrong and they cost an arm and a leg to fix. We turned it in at seven years old for a new Outback. My husband said to me, "We need a new car. We're not rich enough to own a used Volvo."

Good luck to you. I hope you find your perfect rig.

 

[Bananahead]

I can relate to this shamdog. Covid is hitting my wife and I as well. I am in Biotech sales and all the research labs I sell to are closed. My wife saw her salary slashed by 20% ( at a global company with billions in cash reserves ). I am almost grateful that my Telluride order won't even be allocated until June at the earliest so I have some time to sort things out and see if I can still swing this. Sadly, I have seen some dealers charging over 60k for Tellurides on CarGurus in lieu of the factory closure I'm sure. Sadder still....people are actually paying it. You made a wise move and you'll be better off until things level out.

______________________________

 

[kane]

I can relate to this shamdog. Covid is hitting my wife and I as well. I am in Biotech sales and all the research labs I sell to are closed. My wife saw her salary slashed by 20% ( at a global company with billions in cash reserves ). I am almost grateful that my Telluride order won't even be allocated until June at the earliest so I have some time to sort things out and see if I can still swing this. Sadly, I have seen some dealers charging over 60k for Tellurides on CarGurus in lieu of the factory closure I'm sure. Sadder still....people are actually paying it. You made a wise move and you'll be better off until things level out.

Some people make wrong decisions out of emotions and impatience.
That's what the dealers love to hunt upon

 

[PaulD]

To get an X5 down to ~40K - you will be looking at an X5 with ~40k Miles, and only saving 10K... Seems kind of a waste - TBH.

Yes, but the Telluride we had ordered was closer to $50K. Carmax has a 2019 X5 with 16,000 miles on it for $51K, so it's not as far off as you think.

Also, at this point, we're going to hold off buying until later this year or possibly next year. The car market could be quite different then. If Telluride prices are down significantly, we'll consider one again.

For those saying the Telluride doesn't compete with luxury vehicles, it does if the price is close enough for someone to consider those (used or new) in the buying process.

 

[akdoh]

Yes, but the Telluride we had ordered was closer to $50K. Carmax has a 2019 X5 with 16,000 miles on it for $51K, so it's not as far off as you think.

Also, at this point, we're going to hold off buying until later this year or possibly next year. The car market could be quite different then. If Telluride prices are down significantly, we'll consider one again.

For those saying the Telluride doesn't compete with luxury vehicles, it does if the price is close enough for someone to consider those (used or new) in the buying process.

Buying a used BMW is 100% different - especially one that isn't CPO by BMW. FWIW - a CPO X5 will be closer to 65-70k. If you're seeing a used X5 that low - my guess is it is very poorly equipped, and its residuals were bad, which is why BMW didn't CPO it and resell it. It is something I am ALWAYS shocked by - the standard features on luxury brands is INCREDIBLY low. To get something as simple as BSM (Blind Spot Monitor) it is a 'package' with the luxury brand. You're truly just paying for the name/logo.

Obviously - the choice of your car is up to you - but the financials of used luxury vehicles very rarely make any sense. You're buying a brand, which caters their cars to people who can pay big dollars for routine work, parts, etc... Having owned most all luxury brands (Audi Q5, Porsche Cayene, BMW X5) I will never buy a luxury brand again quite honestly. An oil change on my Porsche was $895 per oil change, and had to be done at every 7500 miles. Changing the Transmission Fluid - that's a $1600 job.

The extra hidden costs of luxury brands is maintenence.

 

[kane]

Buying a used BMW is 100% different - especially one that isn't CPO by BMW. FWIW - a CPO X5 will be closer to 65-70k. If you're seeing a used X5 that low - my guess is it is very poorly equipped, and its residuals were bad, which is why BMW didn't CPO it and resell it. It is something I am ALWAYS shocked by - the standard features on luxury brands is INCREDIBLY low. To get something as simple as BSM (Blind Spot Monitor) it is a 'package' with the luxury brand. You're truly just paying for the name/logo.

Obviously - the choice of your car is up to you - but the financials of used luxury vehicles very rarely make any sense. You're buying a brand, which caters their cars to people who can pay big dollars for routine work, parts, etc... Having owned most all luxury brands (Audi Q5, Porsche Cayene, BMW X5) I will never buy a luxury brand again quite honestly. An oil change on my Porsche was $895 per oil change, and had to be done at every 7500 miles. Changing the Transmission Fluid - that's a $1600 job.

The extra hidden costs of luxury brands is maintenence.

Akdoh if one buys a brand new BMW or Jag, he gets a 5 years unlimited warranty and 5 years 150,000 miles service.
Is the above proposition ok? Coz most people do not keep cars for more than 5years.
The real cost passes on to the second owner.

______________________________

 

[Nas4atu10]

From what I understand about BMW warranty transfers to second users is that it's a royal pain. I'm pretty sure if you're the second buyer, in order to qualify for the warranty that came with the original buyer, it has to be bought through a BMW dealership, and paperwork must be filled out to transfer from original owner to new owner (and there may be a fee attached to that as well). I am personally trading in a 2016 BMW X3, that I bought used, of my own, that I originally loved, but am now hating the fact that I ever purchased it. It really is impressive how many packages these luxury brands offer, and how many you need to ensure you get to even come close to what the Telluride offers on pretty much all of its trim levels. And as everyone else has mentioned, the maintenance for my BMW alone is eye popping. I'm glad I'm getting out of mine before the brakes/brake fluid need to be changed. Not to mention transfer case fluid, transmission fluid, etc thats coming up. It really is hard to beat Kia's warranty in this industry right now in my opinion.

 

[akdoh]

Akdoh if one buys a brand new BMW or Jag, he gets a 5 years unlimited warranty and 5 years 150,000 miles service.
Is the above proposition ok? Coz most people do not keep cars for more than 5years.
The real cost passes on to the second owner.

Two things:

1. This is a discussion about a used BMW vs a new Telluride.

2. The BMW program has changed quite a bit
BMW Maintenance Program – BMW USA -

All model year 2017 BMW vehicles and newer sold or leased by an authorized BMW center come with BMW Ultimate Care standard for the first 3 years or 36,000 miles whichever comes first.

BMW X5 - Pricing and Features - BMW USA -

4-year/50,000-mile New Vehicle Limited Warranty for Passenger Cars and Light Trucks 2020 Models

So not even close to the numbers you stated - in fact even under the old program it was only 50k miles and 5 years - certainly not 150k miles.

 

[akdoh]

From what I understand about BMW warranty transfers to second users is that it's a royal pain. I'm pretty sure if you're the second buyer, in order to qualify for the warranty that came with the original buyer, it has to be bought through a BMW dealership, and paperwork must be filled out to transfer from original owner to new owner (and there may be a fee attached to that as well). I am personally trading in a 2016 BMW X3, that I bought used, of my own, that I originally loved, but am now hating the fact that I ever purchased it. It really is impressive how many packages these luxury brands offer, and how many you need to ensure you get to even come close to what the Telluride offers on pretty much all of its trim levels. And as everyone else has mentioned, the maintenance for my BMW alone is eye popping. I'm glad I'm getting out of mine before the breaks/break fluid need to be changed. Not to mention transfer case fluid, transmission fluid, etc thats coming up. It really is hard to beat Kia's warranty in this industry right now in my opinion.

It is transferable as long as you buy a CPO BMW.

My older X5 we got new - and I was so glad to get rid of that thing at 30k miles. Items that should go 60k+ miles were failing at 30k miles. It was honestly sad.

The biggest thing to remember with BMW - is they are now a volume brand, and not a performance/niche brand anymore. Their quality has gone to absolute shit.

I agree with you on the packages as well - it is shocking you pay a 60k base + needing packages to match what comes on a 30k Telluride.

 

[Nas4atu10]

BMW = Bring My Wallet