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.

 

[cerbo]

Paid around $59k for my BTS 2024.. List was $64K. asked a dealer what he d give on the truck and one said $39K (OMG/ non Ram dealer)
15,000 miles and perfect. stopped at local Ram dealer and awaiting their #. Not really trying but if the numbers right I have other options.

 

[arod412]

Right now seems like current values have just dropped big time. My 2022 ram Big Horn Back Country, sunroof, rambox with only 15k miles is only giving me a value of around $35k max. It's just bad right now because I know a dealer would buy it that low and then turn it around and sell it for easily $45k.



2022 Ram Big Horn Back Country
2016 Dodge Charger scat pack
2021 Jeep Wrangler Unlimited Sahara

 

[cerbo]

Right now seems like current values have just dropped big time. My 2022 ram Big Horn Back Country, sunroof, rambox with only 15k miles is only giving me a value of around $35k max. It's just bad right now because I know a dealer would buy it that low and then turn it around and sell it for easily $45k.



2022 Ram Big Horn Back Country
2016 Dodge Charger scat pack
2021 Jeep Wrangler Unlimited Sahara

yea, I feel the same thing on my 24. not going to happen I guess. I thought maybe the v8 might make a difference.

 

[scottmoyer]

I used Edmunds to get a price for my '21 Rebel. After selecting my options, it gave me a retail clean value of $41k. My truck is super clean, but that extra cleanliness really has no value to a dealer or the market. I then checked KBB and used clean again, rather than excellent. KBB said my value is $44,700. I paid $49k for my truck brand new in December of '20 and it had a window sticker of $61k.

So, using Edmunds, after 53 months of ownership, and 40k miles as of tonight, I lost 16% of its value. Using KBB, they claim I lost 9% in 53 months.

Buying from Mark Dodge really helps in reducing the depreciation impact.

 

[Dewey]

I used Edmunds to get a price for my '21 Rebel. After selecting my options, it gave me a retail clean value of $41k. My truck is super clean, but that extra cleanliness really has no value to a dealer or the market. I then checked KBB and used clean again, rather than excellent. KBB said my value is $44,700. I paid $49k for my truck brand new in December of '20 and it had a window sticker of $61k.

So, using Edmunds, after 53 months of ownership, and 40k miles as of tonight, I lost 16% of its value. Using KBB, they claim I lost 9% in 53 months.

Buying from Mark Dodge really helps in reducing the depreciation impact.

Retail value means nothing to me when calculating depreciation. Trade in or private sale value is what matters. Curious what those are for your Rebel?

My 2022 Bighorn BackCountry (54,000 miles) is currently at $29,000 trade in value and $31,500 private party value on Edmunds. Retail which I’ll never see is $33500.

I’m surprised your one year older Rebel is worth that much more. You must have very low miles.

 

[scottmoyer]

Well, you state I must have really low miles, but I stated my miles at 40k as of today. I turned 40,006 just coming home from dinner.

Retail pricing is lower than private party but higher than trade in, so it's a fair pricing for reference. I just looked up on Cargurus what a '21 Rebel with less than 50k miles are being advertised for. With around 40k miles, the majority are between $41k and $44k. Those prices align completely with the high and low between KBB and Edmunds. I did make one mistake in explaining the $44,700 from KBB. I said retail, but their price is shown as private party. Below is private party and trade in from KBB.

So, as I said, I paid $49k in 2020 for an MSRP Rebel 12 Night Edition that had an MSRP of $61k.