Help me understand how this trade in offer works?

[bwsall]

I'm picking up my 2021 Ram Limited Night Edition today, trading in my 2019 Ram Limited that I picked up brand new 363 days ago. I had my truck in for service earlier this week (for some repetitive issues), and my salesman told me they can buy my truck back for more than I owe. My current loan is 0% interest for 60 months, so I've made some good headway over the last year paying principle only.

With that, in the last year, I've found and realized I don't drive that many miles per year, and a lease started looking attractive. I also enjoy trading every three years or so to have the latest technology.

So I'm going to be leasing my 2021 Ram for considerable less per month, and will be able to trade it in in three years with no worrying on the equity. Trading in my 2019 right now made since with how high the trade in values are in my area. I periodically check my trade in value on KBB and it has stayed the same or increased over the last 9 months.

Some may question or think making this move is strange or a waste of money. But it's what makes sense for me switching into a lease for less money per month knowing I won't go over on miles, and have the ability to turn it in at lease end for a new one. PS, in the 12 years I've owned vehicles, I've never completely paid one off (also never traded in being upside down, would never do that).

All in all, I'm excited to pick up my 2021 Limited Night Edition, Technology Group, MFT, 3.92 gears, and all the other options this afternoon!

 

[Smon]

Your monthly payment needs to be the result of the deal you made, not the starting point.

If the guy starts out with saying that, 99% chance the deal is not in your favor.

 

[iLikeTurtles]

If the vehicle has the same (or better) options, and we assume both vehicles depreciate in a similair exponential fashion, and that there is no required downpayment, additional fees/taxes, I believe the only hesitation becomes, "do you mind restarting your payment term."

How else are people assuming this is a bad thing other than restarting the payment term?

 

[RRRAAAAMMMM2020]

I just picked up my truck from Peel Chrysler yesterday. They are desperate for vehicles due to high demand. I think it really comes down to the math. Did you put money down previously? The cost you have incurred is the payments made to date if your finance term just restarts

 

[Pyleketerson]

Loaded question. Depends on what you plan to do when your truck is paid off. Keep it? For how long? Trade it in? When? Without question it’s a great time for trade-in deals due to lack of inventory and low interest rates to finance another new truck. However if you plan on keeping your truck for many years it’s not worth it.

I just traded in my two year old 5th gen for a new one and got a great trade-in deal and lower payments. But it was for a truck I really wanted (BTS) and plan to keep for many many years to come. I wouldn’t have done it for an apples to apples trade-in.

 

[Buckle]

Loaded question. Depends on what you plan to do when your truck is paid off. Keep it? For how long? Trade it in? When? Without question it’s a great time for trade-in deals due to lack of inventory and low interest rates to finance another new truck. However if you plan on keeping your truck for many years it’s not worth it.

I just traded in my two year old 5th gen for a new one and got a great trade-in deal and lower payments. But it was for a truck I really wanted (BTS) and plan to keep for many many years to come. I wouldn’t have done it for an apples to apples trade-in.

I also dealt with peel. They gave me a huge trade in value on my trade, and impressive discount on the rebel. Theyre very easy to deal with.

 

[supercanadian]

This is also Peel that I’m dealing with he sent me all the numbers but I’ve not looked at the numbers.

I’m still in the not sure what colour of limited I’d replace my black with black appearance with. Maybe white this time my last 3 trucks have been black....might be something different this time if I did it but after I put up my Christmas lights I’ll look at the numbers he sent me.

One thing I know is this time I’ll get the bigger gas tank.


Sent from my iPhone using Tapatalk

 

[MarvsAMartian]

I'm in a similar boat at the moment. Would take something great to get me out of my truck and into a newer one. The TRX would be awesome but not likely. One day maybe.

Personally I say if the money's right go for it. I'm not too easily distracted by new and shiny. If it makes sense financially that's ultimately what makes my decision for me. So sure, you're "throwing away" the equity you've put into the truck so far, but if you're able to get better payment options and maybe lower interest then I'd say take a good hard look. My main concerns though would be getting a high value on my trade + a massive discount on the new one. I've seen a couple other members here that got the same, or even more $$$ on their trade in than they originally paid. Personally that's why I've shopped my truck pretty much since I got it. I'm not looking to get rid of it, but if the right opportunity comes along to upgrade (in my case I'd be interested in the Night Edition Laramie) for the same price or less I'll take it.

FYI, the offers I've gotten on my low km (18-19k) pretty well spec'd out Sport, range from $51-56k. I paid $56k and change but with the stupid high interest rate I signed up for, it's going to be a while until I'm in the green on my loan. Assuming I don't come upon $7k in the next day or two, a dealer would either have to offer me $60k+ or come down below that on a Night Edition which from what I can see are advertised in the $81-88k range.

Not sure if that helps or not. Just sharing my perspective.

 

[Buckle]

This is also Peel that I’m dealing with he sent me all the numbers but I’ve not looked at the numbers.

I’m still in the not sure what colour of limited I’d replace my black with black appearance with. Maybe white this time my last 3 trucks have been black....might be something different this time if I did it but after I put up my Christmas lights I’ll look at the numbers he sent me.

One thing I know is this time I’ll get the bigger gas tank.


Sent from my iPhone using Tapatalk

This was my first Ram, and I wanted, and ultimately did get the big tank. And thank goodness! I thought id be getting a 1000kms a tank, but I've yet to get 600! Granted, I have the worst commute, and pretty much all my drives lately are less than 10 minutes long, in the city. And I only have around 1400kms on the truck, so I'm hoping it'll get a bit better, and that if I ever get to go on a road trip again, it'll be significantly better.

The point though, I cant imagine having less range than I do now,...so for sure go for that 120 liter!

 

[cdn.tbird]

This is also Peel that I’m dealing with he sent me all the numbers but I’ve not looked at the numbers.

I’m still in the not sure what colour of limited I’d replace my black with black appearance with. Maybe white this time my last 3 trucks have been black....might be something different this time if I did it but after I put up my Christmas lights I’ll look at the numbers he sent me.

One thing I know is this time I’ll get the bigger gas tank.


Sent from my iPhone using Tapatalk

If the numbers truly are what he's claiming, I'd be willing to trade in my 2019 Limited for a 2021.

 

[Ramjeep]

I would wait for the 2022. Hopefully there will be a refresh and uconnect5.

 

[iLikeTurtles]

I would wait for the 2022. Hopefully there will be a refresh and uconnect5.

I cant imagine a refresh until 2024 at the earliest. I would like to connect two phones at once though...

 

[Ramjeep]

I cant imagine a refresh until 2024 at the earliest. I would like to connect two phones at once though...

Yea I agree that would be nice! RAM will have to do something to stay fresh soon. The new F150 is out The new Tundra next year and Chevy/ GMC will have a heavily refreshed truck out for 2022. I know the truck world moves pretty fresh. Not sure what they could refresh though I think the RAM is perfect as is. Maybe a TRX lite? I think that's the only thing that would make me trade at this point really.

 

[dwalme]

I cant imagine a refresh until 2024 at the earliest. I would like to connect two phones at once though...

Every few years there is a mid cycle refresh.

Uconnect5 isn’t out of the question for 2022 assuming the tech is ready.

 

[iLikeTurtles]

Every few years there is a mid cycle refresh.

Uconnect5 isn’t out of the question for 2022 assuming the tech is ready.

How long did the fourth gen body last and how long after first model year was there a refresh?

Just because uconnect5 is coming out does not mean there will be a true refresh. If these body styles last 8-12 years we tend to see a refresh half of that. So 4 years is pushing. The cost to retool for a refresh on such a mass produced vehicle needs some time to make a profit.

 

[dwalme]

Usually every 3 years for CDJR vehicles.

Not every update is of much significance.

 

[iLikeTurtles]

Usually every 3 years for CDJR vehicles.

Not every update is of much significance.

You calling for an update or a refresh? I think of a refresh as a body restyling in the same body generation

 

[bcpong]

If he’ll shorten the new loan term to match what is remaining currently, then I’d go for it. Restarting sucks and most likely you’ll end up paying more long term. Pull out the excel and see what the true extra cost is. If it’s less than the additional equipment and you want those packages, still might be worth it. Also restarts the depreciation clock.

Fwiw, I’ve had HUDs on past cars and while it seems stupid that you could get the same info looking 3 inches lower, I like that it’s more in field of view and almost never look at the actual instrument cluster anymore

 

[MHCheeseman]

Hi folks...let's again assume I am an idiot....which I am. So I have a 2020 Limited and the dealer contacted me and asked me if I was interested in trading it in for a 2021 Limited. I told them no because I will be taking a beating on depreciation....plus I love my truck. He said he could get the same truck with add on tech package and I'd pay less than I do now.

He said that he could lower my payment and current interest rate I pay doing the deal. What am I missing on this? Doesn't make sense to me, where I would be taking a hit as my general assumption is that I'll be getting raked over by trading in a 2020 for a 2021?

Ask what your new loan term will be. They can lower your payment by extending the term. 99% the new term will be longer than your remaining current term.