Price negotiated from MSRP

[Gusman4]

What monthly payment did you get on this truck?

Im right at $400 a month.

 

[Sir Ramcelot]

FCA is being super strange on their incentives so maybe their incentive team is drunk at home? Yesterday they instituted 0.9% for 84 mo and 120 payment deferral but the deferral ONLY applies to residents in PA and ME who finance at the 0% incentive. It's just odd that they now have 0.0% for 72mo or 0.9% for 84mo neither of which are combinable with the paltry rebates they have right now. GM is still offering 0% for 84mo OR $6500 in rebates (TX) on all 2019/2020 Sierra's and Ford is now offering 0% for 84mo on 2019 F-150s. Also consider that GM outsold both Ford and FCA in the first quarter (Jan-Mar 2020) so you'd think FCA would want to play catch-up. FCA fell behind Ford as well for the quarter. June 2nd incentives will be really interesting.

 

[Brianziggy64]

Some incentives are changing today it appears. Check the RAM website. I see that on “some“ 4X2 & 4X4 models are now offering 0.9% for 84 months. Some models still at 0% for 72 mo. Make sure you click on 4X2 or 4X4 on the model you are considering. But I think we are just at the beginning of ever changing incentives. The factory is supposed to start up one week from today, May 18th.

 

[jnagel]

i don't think he was "dealering" u : ) in addition to the 30 bucks a month savings, if your truck is 60,000 and you forfeit all rebates in favor of 0% and you sell after 24 months, even WITH 0 % you prolly owe approx 45,000...same scenerio but with 3.75/84, u only owe approx 43,000....

i 100% would ONLY take the 0/84 or 08/72 IF i was 100% certain i was going to keep the truck the FULL term. THEN and only then is it a better deal becuz the savings on the 0% rate only comes into play if you compare FULL term of loan on 0 interest vs taking rebates and paying 3.5 to 4% rate ... And then its roughly only 2-3000 in your favor. So if ur not sure, u should take the savings UP FRONT : )

The MORE expensive the vehicle, (well, i really mean the MORE u borrow : ) the MORE 0/84 or 72 over taking the rebates makes sense IF ur one to really want every penny you can squeeze out of your purchase : )

But if u flip flop all the time about your truck, stay far far away from 0 interest loans lol

While I realize you mean well and make a few good points, there is no hard and fast rule and you are mistaken about having to go the full term with 0% - you just need to do the math for a given scenario. One thing many people don't realize is that you pay much more interest dollars early in the loan than later (look at the amortization tables or run it yourself in Excel). In your example above - what amount of rebate $ are you using? The OP said a few thousand. Even if we make it $4K, a $60 truck would be [email protected]% for 84 months (not including that you also pay sales tax on rebate $) ... That's $759 a month. Your first payment, $175 goes toward interest, and $594 goes to principal. Your last payment, 2.36 goes toward interest and $756 goes toward principal. This is how it scales over the term. You are paying $7758 in total interest over the 84 months, but are paying $3684 of that in the first 2 years, and $5711 at the 42 month mark (half way). At 24 months you would owe $41467 and would have paid in total payments $18216. At 0% for the same term but for $60K (no rebates), it would be $714 a month. At 24 months you would owe $42857 but would have paid in total payments $17143 (~$1050 less). At this point, you would be $315 ahead net if you went the rebate route. Go to 36 months and it's $1100 in favor of 0% financing (even though the rebate route would have $500 more in equity). And this becomes more skewed toward 0% the longer you go out. Confused yet? Lol. The reality though is any 84 month financing deal (0% or not) you are almost assuredly going to be upside down with equity unless you put a good chunk down ... these things depreciate too quickly. Look at gap insurance if your'e worried about it. And the OP is not saving $30 a month anywhere ... that's the dealershipping kicking in. Your paying $30 less a month, but over a longer term (with a higher rate) ... so your actual out of pocket is more. This isn't necessarily a bad thing because it allows you to manage cash flow, etc, but it certainly isn't free.

 

[Sir Ramcelot]

You're correct in paying more interest up front but even your example proves that there isn't a one-size fits all mentality here when it comes to numbers. Not all states tax the incentives...TX doesn't. Everyone needs to ensure they are comfortable with amortization and running their own numbers. The intent of this thread is to help people see where the best deals are with which areas/dealers are willing to deal the most. The problem is people put too little information by saying "MSRP is X...I paid X OTD..what a great deal!" That's pretty useless for others. What we need is the following:

Truck (Year, Trim, Options, Colors):
MSRP:
PRICE BEFORE REBATES (if any):
Dealer Fees (add-ons): This matters because a deal can easily be skewed if the dealer charges $800 for doc or processing fee
REBATES: Listed with the name of the rebate and the amount
ZipCode: Important for rebate purposes as their are many regional ones
Dealer: (to avoid people competing for the same truck obviously only list the dealer AFTER you've closed the deal so if you're looking to see if a tentative deal is good or not just don't list the dealer)
Keep your trade if you have one OUT of the deal as there are WAY too many variables there which is why OTD doesn't matter because it could include trades.

 

[Lil Miss Always Wrong]

While I realize you mean well and make a few good points, there is no hard and fast rule ...

there is ONE hard & fast rule which is hard to dispute... If you are going to trade out BEFORE the 12-24 month mark, you take the rebates....otherwise you have paid MORE out of pocket on a bigger principal....and i'm talking like 5-7000 bigger principal....and that was my MAIN point : )

and maybe you don't have to go FULL to the last payment, but AT LEAST 3/4 of the way...and Gap insurance does nothing for depreciation unless your vehicle is a TOTAL LOSS so how would that help?!

I'll admit, there was A LOT to digest in your post, so maybe i missed something

 

[jnagel]

ybe you don't have to go FULL to the last payment, but AT LEAST

there is ONE hard & fast rule which is hard to dispute... If you are going to trade out BEFORE the 12-24 month mark, you take the rebates....otherwise you have paid MORE out of pocket on a bigger principal....and i'm talking like 5-7000 bigger principal....and that was my MAIN point : )

and maybe you don't have to go FULL to the last payment, but AT LEAST 3/4 of the way...and Gap insurance does nothing for depreciation unless your vehicle is a TOTAL LOSS so how would that help?!

I'll admit, there was A LOT to digest in your post, so maybe i missed something...lol

Apologies for not being more clear - I was agreeing with you with respect to the 12-24 month time frame in this particular scenario (hence the numbers @ 24 months in, where you would be ahead ~$300 if you went the rebate route). As far as gap insurance, the OP was concerned about an accident and that was a decision point on going rebate over 0%, was having more equity to protect against this.

My point is run the numbers case by case - you don't always take the rebates ... in this example, you don't need to go full term (or even 3/4 of the way). The break even is under 27 months (where you would have paid out more than $4K in interest), which is not even 1/3rd of the way through the loan. I attached a pdf with 3 different scenarios so you you can see - first one is the one I was talking about originally (which was the $4K rebate and 3.75% for 84 months vs. 0% for 84 months). That being said, that's not a valid option at the moment, so the other 2 are a Limited with a $2K rebate and 3.00% for 72 months vs 0% for 72 months and a Big Horn with a $4500 rebate and 3.00% for 72 months vs. 0% for 72 months. There is a highlighted column which has the net difference between the two with respect to owed amount and out of pocket (once the numbers go black, it's 0% being the better deal). So to your point, the BigHorn takes you late into the term, but the limited again is about 27 months in. Anyways, hopefully that's helpful. While getting off topic on this thread, this is good information for people to help negotiate. I buy cars a lot, and every time I break out the laptop these sales guys start sweating lol.

 

[Sir Ramcelot]

Apologies for not being more clear - I was agreeing with you with respect to the 12-24 month time frame in this particular scenario (hence the numbers @ 24 months in, where you would be ahead ~$300 if you went the rebate route). As far as gap insurance, the OP was concerned about an accident and that was a decision point on going rebate over 0%, was having more equity to protect against this.

My point is run the numbers case by case - you don't always take the rebates ... in this example, you don't need to go full term (or even 3/4 of the way). The break even is under 27 months (where you would have paid out more than $4K in interest), which is not even 1/3rd of the way through the loan. I attached a pdf with 3 different scenarios so you you can see - first one is the one I was talking about originally (which was the $4K rebate and 3.75% for 84 months vs. 0% for 84 months). That being said, that's not a valid option at the moment, so the other 2 are a Limited with a $2K rebate and 3.00% for 72 months vs 0% for 72 months and a Big Horn with a $4500 rebate and 3.00% for 72 months vs. 0% for 72 months. There is a highlighted column which has the net difference between the two with respect to owed amount and out of pocket (once the numbers go black, it's 0% being the better deal). So to your point, the BigHorn takes you late into the term, but the limited again is about 27 months in. Anyways, hopefully that's helpful. While getting off topic on this thread, this is good information for people to help negotiate. I buy cars a lot, and every time I break out the laptop these sales guys start sweating lol.

Just curious where you guys are seeing 3.75% for 84mo? Also, the break-even in the example could be even sooner when you consider states like TX don't tax the incentives so a $4,000 rebate saves an additional $250 in sales tax.

 

[Sir Ramcelot]

Some incentives are changing today it appears. Check the RAM website. I see that on “some“ 4X2 & 4X4 models are now offering 0.9% for 84 months. Some models still at 0% for 72 mo. Make sure you click on 4X2 or 4X4 on the model you are considering. But I think we are just at the beginning of ever changing incentives. The factory is supposed to start up one week from today, May 18th.

Don't even look at that as the disclaimer on the 0.9% for 84mo says 2020 1500s and doesn't make mention of specific models let alone specific drive trains.

 

[jnagel]

Just curious where you guys are seeing 3.75% for 84mo? Also, the break-even in the example could be even sooner when you consider states like TX don't tax the incentives so a $4,000 rebate saves an additional $250 in sales tax.

The rate would be from a private lender ... that's what the OG said he got. The best I could find was 3.99%. And yes, great point, you throw in sales tax and the rebate amount goes down, so good pickup there

 

[PhatHalpert]

53400 MSRP. Final price was around 39900 before 300 dollar dealer fees and taxes.

Where from?

 

[Jako]

Just curious where you guys are seeing 3.75% for 84mo? Also, the break-even in the example could be even sooner when you consider states like TX don't tax the incentives so a $4,000 rebate saves an additional $250 in sales tax.

God Bless Texas, NY state you pay. NY should be called "Taxes". Paid 400 on my rebates.

 

[Lil Miss Always Wrong]

Apologies for not being more clear - I was agreeing with you ...... While getting off topic on this thread, this is good information for people to help negotiate. I buy cars a lot, and every time I break out the laptop these sales guys start sweating lol.

Hi J! Boy i believe you about what happens when you break out your laptop...lol

I think we are saying the same, because if you look at my original comment, i DID say in the end you might save approx 2-3000 with the 0 interest over taking the rebate if u don't TRADE EARLY and IF u are the sort to want to "squeeze every penny out of your purchase" the zero % would prolly be the best way to go if u expect to go full term. But i also think 2-3000 over the term of a 7 year loan is NOT a significant enough of an amount IF it were to limit your early trading options, so there's that.

And i am really saying that while in most cases 0% CAN be the better way to go, it is NOT hands down the "better offer" as it appears at first blush. Dealers will tell you the rebates are in place for the people who "will not quallify" for a 0% loan, when in reality its not that cut & dried. Even if you qualify, it is crucial to weigh the "long term" cost & benefit (example if you could qualify for a 3% loan on your own AND take the rebates, it would be a MUCH better deal)

Soooooo If you vehicle hop like this gal does (proud owner of 21 RAMS in 18 years : ) ESPECIALLY if u were to trade out after only 6 months, which sadly i've done on more than one occasion (and i have the dent in my retirement fund to prove it : ) more than likely zero % isn't the way to go....

 

[Stevesmdd]

Am I getting a good deal? First time leasing.

12k/yr 39 months 3k up front includes taxes dmv and first payment 339/month. Sticker below

 

[Ram1500OwnerMaybe]

Am I getting a good deal? First time leasing.

12k/yr 39 months 3k up front includes taxes dmv and first payment 339/month. Sticker below

I didn't fully understand the details above.

 

[Sir Ramcelot]

Am I getting a good deal? First time leasing.

12k/yr 39 months 3k up front includes taxes dmv and first payment 339/month. Sticker below

It depends. When looking at a lease you need to tell us what the MF (Money Factor...i.e. interest rate) as well as what the residual is at the end of the lease.

 

[rws1944]

As Heninator above said there is not enough info to determine if it's a good deal. You should compare it to a straight loan and see what works best. Also, it's not uncommon for you get some sort of rebate for entering a factory lease or loan. Some will also tell you not to put anything down on a lease as you could end up losing any value if the lease is terminated early. To compare a lease to a loan you will need to know all factors used in determining the lease payment: 1. Capitalized Cost; 2. Residual Value; 3. Depreciation; 4. Term of Lease; 5. Money Factor and 6. Taxes. All of these values should be provided to you before you sign the lease.

 

[ramfanatic]

My local credit union is offering 1.99% for 60 month, and PenFed is offering 2.19% 60 months. But whoever you decide to borrow from I recommend making sure it is a simple interest loan as opposed to pre-computed.

 

[JKlem]

Never put money down a lease. Never put money down on a lease.

 

[BIG__OOF]

I'm looking into this Big Horn MSRP'd at $46.8K, with an advertised sale price of $37.2K for a potential savings of $9.6K off MSRP or 20.5%. I'm assuming none of the taxes/fees are included in that price. Realistically, how much further could I negotiate the price?