First Ram and would like some thoughts.

[ajaxthe2nd]

First time post! I found this forum while researching my tentative purchase of a preowned 2019 Ram 1500. Anyone have any opinions on this truck? It has 25k miles and the dealership said they would go no lower than $39k plus tax, title,...
My other option is to wait and hope the used market goes down or that the incentives get better and buy a new one within the next 6 months or so.
Thoughts?

 

[BluegrassMotorsport]

Honestly, in this market I would call that a really good deal on this truck. It's a really highly optioned Big Horn and you're essentially saving 33% off MSRP with low miles. If you like the truck, I say go for it.

 

[SD Rebel]

I would say unless you need another vehicle right now, I would wait for this market to settle down. You will be upside down in a couple of years when the market adjust. Which is pretty hard to do with a truck, since they have such strong resale, but this market is going to bite buyers of new cars (or late model used) right now.

I got my RAM brand new for almost 25% off MSRP. You should be able to buy a new truck from 10% - 25% off MSRP on a normal market, I would wait. That price is for an almost 3 year old truck, I wouldn't do it personally.

 

[BluegrassMotorsport]

I got my RAM brand new for almost 25% off MSRP. You should be able to buy a new truck from 10% - 25% off MSRP on a normal market, I would wait.

True, but I don't see those kind of deals ever returning with inflation rising.

 

[SD Rebel]

True, but I don't see those kind of deals ever returning with inflation rising.

It's always been there historically, as MSRP is inflated, the discounts are consistent. It's a marketing thing that the Big 3 have employed for 3 decades. Once supply catches up, the discounts will come back.

 

[ajaxthe2nd]

It's always been there historically, as MSRP is inflated, the discounts are consistent. It's a marketing thing that the Big 3 have employed for 3 decades. Once supply catches up, the discounts will come back.

I agree about the supply but who knows when that is going to happen. That’s the quandary I’m in. I am factoring the cost of money into this too. Money is cheap to borrow now(1.74%) and who knows where that will be once supply returns. Too much to think about! Lol!

 

[mikeru82]

It's a decent deal for the times if you want or need a truck now. If you don't I'd probably wait. I'm a little more pessimistic than SD on things going back to "normal" anytime soon.

 

[SD Rebel]

I agree about the supply but who knows when that is going to happen. That’s the quandary I’m in. I am factoring the cost of money into this too. Money is cheap to borrow now(1.74%) and who knows where that will be once supply returns. Too much to think about! Lol!

Absolutely, the market is a cycle of ups and downs. If you plan on keeping the truck a long time, those factors don't matter as much. If you plan on switching every 4-5 years, then it's more important.

If you can wait, I would wait, but you shouldn't stop yourself if you really want it. Just understand the future costs involved and you should be fine. My local RAM dealer had next to no stock, now they have over 50 trucks sitting on the lot. Used car prices are also dropping in certain areas, the adjustment is happening.

I suspect normalcy in the next 2 years.

 

[GKIII]

Do you NEED a new truck now or within the next year? If so, sure...that's not terrible for the current vehicle market. BUT I will say you would be able to get that truck brand new for ~46k if/when the market returns to normal. If you can wait a year or so, I would.

 

[IvoryHemi]

It's always been there historically, as MSRP is inflated, the discounts are consistent. It's a marketing thing that the Big 3 have employed for 3 decades. Once supply catches up, the discounts will come back.

Ford is moving towards build to order as CEO Jim Farley said they are wasting money on incentives, when the customer says up front, "This is the car I want”

Ford raises 2021 profit outlook, eyes shift to build-to-order

Ford Motor Co (F.N) on Wednesday boosted its 2021 profit forecast after reporting better-than-expected quarterly results, lifting the No. 2 U.S. automaker's shares nearly 3%.

www.reuters.com

 

[SD Rebel]

Ford is moving towards build to order as CEO Jim Farley said they are wasting money on incentives, when the customer says up front, "This is the car I want”

Ford raises 2021 profit outlook, eyes shift to build-to-order

Ford Motor Co (F.N) on Wednesday boosted its 2021 profit forecast after reporting better-than-expected quarterly results, lifting the No. 2 U.S. automaker's shares nearly 3%.

www.reuters.com

I read that too, but they are toying with the idea, which is heavily based on current economics. Not sure how they would like it on a down market. I honestly would rather they just price everything realistically and remove the artificially elevated MSRP.

But I don't think the mentality of "never pay MSRP for a full size" is going away anytime soon. Especially with GM and RAM in the mix, which also have been very aggressive on incentive marketing model.

 

[NorthStar]

I call Bravo Sierra on anyone saying not to purchase now as everything is negotiable. Instead, they should be saying keep searching until you find the truck you're seeking and a dealer willing to negotiate.

I picked up a brand new 2021 Ram 1500 Big Horn Ecodiesel 4x4 which had an MSRP of $59,760 for $54,025 out the door which included tax, title and license. The dealer told me there were no discounts, no rebates, and no negotiating. Well, it took me two trips to the same dealer, numerous phone calls, and two hours of negotiating but I saved myself $5700. They also paid off my 2020 Ram 1500 Lone Star 2WD by giving me $1900 more for my trade than what was being offered by Carmax and Carvana. Don't take the dealer's crap about no negotiations by going in with comparable Rams in a 200 mile range and see if they don't start coming down on price. EVERYTHING is negotiable...and if not, keep looking as you might find something better.

P.S. They started off by stating non-negotiable and offering me $4,000 less for my trade...then I showed them my $1000 Ram certificate and $500 True Car Certification...that took $1500 off the deal. Then I showed them comparable trucks in the market within 300 miles of Houston and the prices started coming down...finally I showed them the value of my truck and kept pushing. This may be an illogical market but a logical and methodical approval to buying a vehicle can save you thousands.

 

[SD Rebel]

I call Bravo Sierra on anyone saying not to purchase now as everything is negotiable. Instead, they should be saying keep searching until you find the truck you're seeking and a dealer willing to negotiate.

I picked up a brand new 2021 Ram 1500 Big Horn Ecodiesel 4x4 which had an MSRP of $59,760 for $54,025 out the door which included tax, title and license. The dealer told me there were no discounts, no rebates, and no negotiating. Well, it took me two trips to the same dealer, numerous phone calls, and two hours of negotiating but I saved myself $5700. They also paid off my 2020 Ram 1500 Lone Star 2WD by giving me $1900 more for my trade than what was being offered by Carmax and Carvana. Don't take the dealer's crap about no negotiations by going in with comparable Rams in a 200 mile range and see if they don't start coming down on price. EVERYTHING is negotiable...and if not, keep looking as you might find something better.

No one is saying not to negotiate or you can't get a deal. Just that if you want the best deal (or even a good deal), you should wait for production shortfalls to adjust. There are literally thousands of trucks of all brands sitting on vast lots waiting for chips before they can ship out. The deals will improve as lots get back up to stock. As I mentioned, my local dealer now has 50 trucks on the lot, when just a month ago they had nothing. Their pricing has already adjusted somewhat.

Of course that is also dependent on your needs and wants, maybe it's worth it to you to get one now even if you could have saved a bit by waiting. That's up to the OP to decide which way he falls.

 

[GKIII]

$5700 off a $60k truck is nothing compared to even 5-6 months ago.

ALWAYS negotiate on your vehicle, but the value isn't what is was right now. If you can, wait.

 

[NorthStar]

No one is saying not to negotiate or you can't get a deal. Just that if you want the best deal (or even a good deal), you should wait for production shortfalls to adjust. There are literally thousands of trucks of all brands sitting on vast lots waiting for chips before they can ship out. The deals will improve as lots get back up to stock.

Of course that is also dependent on your needs and wants, maybe it's worth it to you to get one now even if you could have saved a bit by waiting. That's up to the OP to decide which way he falls.

Agree with you 100%. I wasn't pointing finger at anyone on this forum but at what you see on the news and Youtube. Too many "experts" saying now is not the time to purchase when in reality some may want or need to purchase now...and there are deals to be gotten if one takes the time and does it properly.

 

[GKIII]

Ford is moving towards build to order as CEO Jim Farley said they are wasting money on incentives, when the customer says up front, "This is the car I want”

Ford raises 2021 profit outlook, eyes shift to build-to-order

Ford Motor Co (F.N) on Wednesday boosted its 2021 profit forecast after reporting better-than-expected quarterly results, lifting the No. 2 U.S. automaker's shares nearly 3%.

www.reuters.com

The dealer model is certainly annoying but folks don't realize that we'll only be paying MSRP for vehicles if things transition to a direct order system.

 

[NorthStar]

$5700 off a $60k truck is nothing compared to even 5-6 months ago.

ALWAYS negotiate on your vehicle, but the value isn't what is was right now. If you can, wait.

And $43,000 for a one year old 2WD Lone Star is ridiculous compared to 5-6 months ago as well...it's all relative. Most 2WD Lone Stars would have traded for $32,000 a year ago or even 5-6 months ago thus in reality I got almost $15,700 off on my truck.

 

[SD Rebel]

Agree with you 100%. I wasn't pointing finger at anyone on this forum but at what you see on the news and Youtube. Too many "experts" saying now is not the time to purchase when in reality some may want or need to purchase now...and there are deals to be gotten if one takes the time and does it properly.

No worries, I ended up actually reinforcing your original point, that there are deals to be had, especially as the market is slowly getting more stock.

 

[IvoryHemi]

I agree about the supply but who knows when that is going to happen. That’s the quandary I’m in. I am factoring the cost of money into this too. Money is cheap to borrow now(1.74%) and who knows where that will be once supply returns. Too much to think about! Lol!

New that truck could’ve been had for ~$46k. (6% below invoice + $6000 rebates)

So I would consider $39k w/ 25k miles a good deal.

For reference I purchased my truck in early March before **** hit the fan. 2019 Longhorn w/ 25k miles. MSRP was $70,765 and I bought for $50,084. I calculated new could be had for ~ $58k (6% below invoice + $2,750 rebates)

 

[GKIII]

And $43,000 for a one year old 2WD Lone Star is ridiculous compared to 5-6 months ago as well...it's all relative. Most 2WD Lone Stars would have traded for $32,000 a year ago or even 5-6 months ago thus in reality I got almost $15,700 off on my truck.

Yea I guess the other question is what is the trade in situation like for the OP?