Depreciation

[nc_beagle]

I read an article that stated the Ram 1500 lost about 43% of its value in five years. I assume these studies are based off of the original MSRP, though I don't know if the five year value is based on trade-in value or private party value.

That said, I'm curious if anyone has run the numbers (regardless of vehicle age) and what you're seeing for depreciation, based on your purchase price.

In my case, using KBB Private Party Value (the mid-range value) I'm showing 20% depreciation from what I paid in July 2021--just about four years.

 

[Oldphart]

I read an article that stated the Ram 1500 lost about 43% of its value in five years. I assume these studies are based off of the original MSRP, though I don't know if the five year value is based on trade-in value or private party value.

That said, I'm curious if anyone has run the numbers (regardless of vehicle age) and what you're seeing for depreciation, based on your purchase price.

In my case, using KBB Private Party Value (the mid-range value) I'm showing 20% depreciation from what I paid in July 2021--just about four years.

That is one of the variables to your question. What you paid and what the other guy paid can be vastly different; therefore your numbers will be different.
I would assume that the article you read didn't provide which figures they used. Model Name? Optional Equipment? Mileage?
In my case, my 2021 1500 was purchased on 3/31/21 so it's a bit over 4 years old (to me). Sticker price = $55,935.00 - Current KBB = $34,060.00, using excellent condition. Percentage depreciation equals 39.10%. However I paid probably 5k less so the figure based on what I actually paid would be roughly 33%.
Frankly, the current value of our trucks is what someone else is willing to give us for them, nothing more.

 

[Dewey]

My truck value lost about $30,000 in just under 3 years with slightly higher than average miles. (53,000). That’s about a 45% decrease from the purchase price. By far the largest depreciation I have ever seen in the first 3 years. Didn’t help that I paid up on it when prices were crazy during 2022 due to production shortages and pandemic pricing.

Huge discounts on new trucks right now is only adding to this. No big deal because I don’t plan on buying a new truck for at least a few years yet. Hopefully things settle down a bit by then. Until then I’ll be driving the heck out of my truck and getting my money’s worth out of it. Won’t be just sitting in the garage losing value.

 

[rick619]

Mine was a left over '23 Big Horn that I bought new about a year ago. I paid $49K. KBB private party high value is $42.8K with currently 8800 miles.

Bottom line, it is what it is. Since I have a short commute, I'm hoping to have it for 10 years at least. So no real complaints from me. At the time, it was looking like it could be the last time I would be able to get the 5.7 V8. I didn't want the new I6 Turbo, so no regrets.

My wife has a 2019 Ford Expedition which is a V6 Turbo. It has 60K miles and has already had cam phasers replaced, also the transmission was replaced last week. At this point, we're not planning to buy a Ford ever again. So if mine can make it to 100K without and major issues, I'll be happy.

 

[killerformula]

Seems like this could be a bit of a moving target too. 3 years ago the used vehicle inventory was way overpriced and new Rams were flying off the lots. Now both used and new vehicles are way over-inventoried. This affects prices pretty significantly, and we will have to how this changes if inventory evens out.

 

[Dewey]

Seems like this could be a bit of a moving target too. 3 years ago the used vehicle inventory was way overpriced and new Rams were flying off the lots. Now both used and new vehicles are way over-inventoried. This affects prices pretty significantly, and we will have to how this changes if inventory evens out.

Around here inventory has dropped drastically in the last month. Huge discounts are moving trucks and nothing else getting delivered. Went to 3 dealers and selection was very slim with only basic models and not many options. 2 months ago the lots were packed with just about anything you could want.

 

[1791]

paid 30k for my 2019 Laramie crew with 65k mi on it in January original sticker was 58k. it was a local 1 owner with pano roof 12in...... comp's in my area were 34k. i'm fine with what i paid it's has everything i wanted i intend on keeping it for a long time so i don't care about resale.