Just sold to Vroom...

[‘19ramlveryeha]

Business yes, but how many are writing it off?
I don't have any real idea of the % of owners who are in business and/or take a writeoff but I'd guess it's south of 50%. So what are the other 50+ % doing? Just ponying up over 100% of original sale price for a 2 yr old truck? I like the RAM but it isn't a 65' mustang or anything...

You (and others) make a good point for dealerships needing vehicles to resell, after all, next to service that's probably the #1 and 2 moneymakers they have. Parts adds some to the mix and a few have bodyshops too.
I get it that we are seeing a temporary shift in price, from "normal" incentives/values to an unrealistic 20-25% over valuation. If enough peeps pony up the benjamins then yes, that will set the new standard until supply catches up.

I still (stubborn old fool) don't see the economics behind everyday commuter folk who have a sound 2 year old truck deciding, "F it, I'll just pay over value for another, just cause'...".
Business yes, everyday Joe - ?

Lastly, someone please edumacate me on how banks and credit unions will lend 90-100% of these inflated values then when the market corrects, the buyer is upside down BIG TIME. Don't you think the repo's will start happening then? If I remember, the same stuff happened in the housing market in 2008-2010.

Not trying to argue (hate that in forums), just not sure what's driving this market in used trucks so hard.

Certain businesses will have another stellar year. They will need to buy vehicles or equipment to offset that tax liability. Just because you don’t see why someone would pay an over inflated value doesn’t mean others don’t see that as an opportunity. Additionally some total people use the total cost of the vehicle +interest as an opportunity to get a newer vehicle at 0% financing over a similar time frame which will cost the same. Some people were under water in their current vehicles and this present an opportunity to get out of that loan if necessary. As far as values for the vehicles you still have to qualify for the truck. They can’t just inflate the numbers as you are stating as it happened back in 08. They will finance what the credit scoring system believes is viable. It’s market value. The only thing you are seeing this come up on is commercial and residential appraisals but that’s speculative and should not decrease the value of the property. Those values should be based on market even though the market is over inflated at this time. If you finance and you can afford it and you expect to be in it for the long haul being underwater in a year doesn’t really matter. Truck values are still decent in some areas and some places still have incentives.


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[Willwork4truck]

Certain businesses will have another stellar year. They will need to buy vehicles or equipment to offset that tax liability. Just because you don’t see why someone would pay an over inflated value doesn’t mean others don’t see that as an opportunity. Additionally some total people use the total cost of the vehicle +interest as an opportunity to get a newer vehicle at 0% financing over a similar time frame which will cost the same. Some people were under water in their current vehicles and this present an opportunity to get out of that loan if necessary. As far as values for the vehicles you still have to qualify for the truck. They can’t just inflate the numbers as you are stating as it happened back in 08. They will finance what the credit scoring system believes is viable. It’s market value. The only thing you are seeing this come up on is commercial and residential appraisals but that’s speculative and should not decrease the value of the property. Those values should be based on market even though the market is over inflated at this time. If you finance and you can afford it and you expect to be in it for the long haul being underwater in a year doesn’t really matter. Truck values are still decent in some areas and some places still have incentives.


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Probably the thing that rang most true to me from your comments was that peeps who were underwater see this as a means to get back some equity... that I can see. I also agree that business writeoffs will continue (and the cost will just get passed along).
Me, I'm just glad some foo I mean fella' wants to help out guys on the forum who are now getting over what they paid after 2 years+ of driving it. Worked for them! Now as long as they downgrade their 21' to a Tradesman or BH (if they had a Laramie or Ltd), they can still drive a new truck and it's even a better deal.

 

[Sal731]

I’m not sure if you guys read this post already but I went to local autonation and they upped their offer of 49,500 to 50,500. They also recommended to me that I call the dealer and talk to their trade in guy. I did just that. I was quoted 45k with 25k miles. When I called back book value went up and the offer went up 2k. Also my new mileage is 27,500. I’m dropping my truck off Monday to make sure I don’t scratch it up. 47k+the taxes is over 51k. That is an awesome number. I’ll be truckless till my rebel gets built. Been in D1 status since 5/6. Good luck to all you guys trying to get the best numbers for your vehicles

 

[Mchurch52]

I ended up trading mine in with Aaron for a ‘21 Longhorn with EcoDiesel. Vroom offered $4500 more than what I got for my trade, but by trading in I saved $4500 in sales tax, so it was a wash. Between the discount I got from the dealership (1% under invoice), the 0% for 72 financing, and the $50k trade value I feel I got a great deal. I could’ve had $2750 in rebates, but the savings on interest from the 0% was the better deal. Since I intend to keep this one for a while it was a no brainer.

 

[Willwork4truck]

I ended up trading mine in with Aaron for a ‘21 Longhorn with EcoDiesel. Vroom offered $4500 more than what I got for my trade, but by trading in I saved $4500 in sales tax, so it was a wash. Between the discount I got from the dealership (10% off MSRP), the 0% for 72 financing, and the $50k trade value I feel I got a great deal. I could’ve had $2750 in rebates, but the savings on interest from the 0% was around $6000. Since I intend to keep this one for a while it was a no brainer.

Sheesh, where do you license that you paid 4.5K in taxes? Oh, lest that sounded rude, the deal you described of 10% off certainly beats a lot of what I see.

 

[Mchurch52]

Sheesh, where do you license that you paid 4.5K in taxes?

Most cities in Louisiana have a 9% sales tax rate, 4% state and 5% local.

 

[Sal731]

New York also. 8 and 5/8 sales tax

 

[mikeru82]

My local sales tax in WA is 8%. I saved $4k in sales tax by trading in the Laramie for my new Limited. Dealer gave me $50k. Best offer I had was from Vroom for $53,670 if I remember correctly. So in the end I came out a few hundred by trading it in, and I was able to keep my business in my local community.

 

[JoeCo]

Sheesh, where do you license that you paid 4.5K in taxes? Oh, lest that sounded rude, the deal you described of 10% off certainly beats a lot of what I see.

Yeah my county in NY is 8.25%, so my longhorn without trade will be about $4,900 in taxes. With my trade in it would have been around $2500, but with selling that this past week I will pay the full amount. Of course I got substantially more than that for my truck in this current market so it covered the additional $2,400 in taxes and a lot more.

Still though, it's going to hurt seeing that nearly $5,000 tacked onto that bill of sale.

 

[nburd]

My son leased a 2020 Warlock Last year. His total price if bought after 42 months was 36000, sum of payments, tax and buy out. He just got a trade in estimate for $36500. He used the “lease equity“ for a trade for a ‘21 Jeep gladiator.

 

[monkeypunch]

Jesus seeing how much some of you guys pay in taxes is staggering. We have a 3.25% state excise tax on vehicles and that's it.

 

[Sal731]

Wow. Lucky you. What state is that? I guess it’s like property tax. I’m right under 12k a year and that’s actually cheap in the area I live. My buddies parents are in KY and their house is twice as big as mine and they are on 7 acres compared to my one acre and they pay 900 a year in property tax.

 

[jdmartin]

Are you people selling because of the extra cash you're getting on the "sells" intending on just keeping the cash or buying another vehicle?
Most of you bought the vehicle you are "selling" for a purpose, so are you just going to be without it, or buying another?
Buying a cheaper, used model, or upgrading to a newer model?

Keep in mind, if you turn around and purchase another vehicle, you lose the sales tax advantage (in most states), and deals aren't as terrific as they were months ago. Many dealers not offering many "dealer discounts", and rebates pretty well suck at this time.

Just some thoughts.

I think this is a great question. I don't know about the folks on this board, though I suspect this fits some of them, but I would bet most are either buyer remorse payment levels or people who like to be in a new vehicle constantly and are taking this opportunity to get in one sooner than they otherwise would be able to justify.

The other thing is lots of people who buy vehicles this expensive are upside down for a very long time. This virtually allows them to walk away without bringing a check. Unfortunately, most of them will just be upside down in another vehicle in short order so it's really kind of pointless;

 

[Sal731]

I was looking at the rebel either way and I ordered on 4/8. Found out about the extra money for my trade afterwards. Of course everyone likes to be in a new vehicle whenever they can justify doing so. I haven’t met anyone that rather stay in an outdated vehicle. Just like everyone wants to be happy. Nobody wants to be un happy. This is natural. Don’t be a cliche. Misery loves company. The only reason one wouldn’t be in a new truck or car is because they can’t afford it. I can’t afford the TRX which is the truck I’d rather be driving so I will stay within my budget. I am happy for those that can afford it. To everyone who is buying a new vehicle god bless and enjoy. When the 6th gen comes out I’ll be trading in the truck that I don’t even have yet lol .

 

[ram0686]

I think this is a great question. I don't know about the folks on this board, though I suspect this fits some of them, but I would bet most are either buyer remorse payment levels or people who like to be in a new vehicle constantly and are taking this opportunity to get in one sooner than they otherwise would be able to justify.

The other thing is lots of people who buy vehicles this expensive are upside down for a very long time. This virtually allows them to walk away without bringing a check. Unfortunately, most of them will just be upside down in another vehicle in short order so it's really kind of pointless;

My thoughts too. The sooner I'm out of debt the better.

 

[Kimkeys99]

Just sold my 2020 Limited 2x4, Night Edition with 9,272 miles to Autonation. Bought it back in August 2020 for $55,567. Vroom offered $54390, then 2 days later they raised it to $54,890. Filled out the online appraisal for Autonation and they sent back $53,000. I sent over the Vroom appraisal and set an appointment for today. Came in gave them the Vroom offer of $54,890 and they offered me $55,000. I am happy to say the least. Best deal out of everyone. Ordered through Aaron at Mark Dodge and I am excited. Now I just have to wait for my 2021 Limited 4x4 Night Edition. Walked away with $9,730.

Just checked Autonation’s website and they are selling my truck I sold them for $55,000, they are now selling for $58,995. That’s crazy!!

 

[Sal731]

Good for them. I hope they sell it fast so they keep making crazy offers

 

[monkeypunch]

Wow. Lucky you. What state is that? I guess it’s like property tax. I’m right under 12k a year and that’s actually cheap in the area I live. My buddies parents are in KY and their house is twice as big as mine and they are on 7 acres compared to my one acre and they pay 900 a year in property tax.

Oklahoma

 

[Bay Area RAM]

Thanks to this thread I just spent a ton of money.... . Got all the quotes from vroom, carvana, etc and walked into a dealership with them in hand, no inventory to speak of so we ordered a 2022 limited granite night edition with all the boxes checked. No pricing on the 22’s yet but I imagine it’ll be around 70k.... rumor has it there’s some minor cosmetic changes for 2022 so I hope I like what’s coming.

dropping my truck off next week and getting 53k... I’ll be without a truck for 2-6 months per the dealer and that’s ok By me. My reason for trading in, didn’t get exactly what I wanted in the first place and being that it was a 2019 build I was starting to have a lot of little problem pop up.... so I figured, why not..... YOLO !!!

 

[Sal731]

Nice brother. Not sure about the cosmetics but I think 23 will be 6th gen