Price negotiated from MSRP

[Cliffrunner88]

Anything's possible with a sawz-all, even a sunroof

Well that would explain those leaks around the sunroof I've heard about, haha.

 

[JoeCo]

yeah that's a good point, i didn't think about that...assuming 2.49%, then that's another $3,164 off... bringing my percentage off to 17%

Yep, definitely something to take into consideration with these low rebates. Even without keeping the truck for the full amount of the loan, with the way bank front loads interest, it still saves a lot of money. In my example where my interest is 3.5% for 72 months, for a $36,000 loan, the overall amount saved in interest is $3,964. However, in the first 3 years of payments the overall amount of interest paid would be $2,979 due to the front loading of the interest in the loan. Taking that all into account, losing the $1250 rebate on my order and opting for the 0% was a no brainer.

 

[JackOfAllRyans]

Just a friendly reminder for folks to sign up for their $250 BonusDrive rebate check per Silent Bob's post (once you take ownership of your new truck). I had completely forgotten about it because I was so focused on my truck!

BonusDrive $250 Rebate - You or someone in your household must own, lease, or trade in a vehicle that is not a Chrysler, Dodge, Jeep, Ram, or Fiat. You do not need to be an Allstate customer for this - LINK

 

[Nova90]

Seems like there is a number of us in the Northeast (PA to NH) that placed orders with Aaron at Mark Dodge in March. Would be cool if they all came in at the same time....Aaron could fill a shipping truck with Rams heading to the Northeast!

 

[fubar414]

Just a friendly reminder for folks to sign up for their $250 BonusDrive rebate check per Silent Bob's post (once you take ownership of your new truck). I had completely forgotten about it because I was so focused on my truck!

BonusDrive $250 Rebate - You or someone in your household must own, lease, or trade in a vehicle that is not a Chrysler, Dodge, Jeep, Ram, or Fiat. You do not need to be an Allstate customer for this - LINK

Just got my check in the mail today!

 

[JackOfAllRyans]

Just got my check in the mail today!

Nice! How long did it take?

 

[JoeCo]

Seems like there is a number of us in the Northeast (PA to NH) that placed orders with Aaron at Mark Dodge in March. Would be cool if they all came in at the same time....Aaron could fill a shipping truck with Rams heading to the Northeast!

That would be awesome!

 

[fubar414]

Nice! How long did it take

From application day to check in hand 15 days

 

[21Bighornnightedition]

Just got my check in the mail today!

Received the check, a nice add to the aftermarket budget. Thanks to all who pointed it out and for the reminders

 

[lkjk]

Yep, definitely something to take into consideration with these low rebates. Even without keeping the truck for the full amount of the loan, with the way bank front loads interest, it still saves a lot of money. In my example where my interest is 3.5% for 72 months, for a $36,000 loan, the overall amount saved in interest is $3,964. However, in the first 3 years of payments the overall amount of interest paid would be $2,979 due to the front loading of the interest in the loan. Taking that all into account, losing the $1250 rebate on my order and opting for the 0% was a no brainer.

The banks don't "front load" interest, you're just paying interest on the principle, which decreases through time and therefore you pay less interest per payment through time. Because of this, amortization schedules will show that you are paying more in interest in earlier periods of a loan than later periods, but it is not "front loading" or something shady, it's just math.

 

[Silent Bob]

The banks don't "front load" interest, you're just paying interest on the principle, which decreases through time and therefore you pay less interest per payment through time. Because of this, amortization schedules will show that you are paying more in interest in earlier periods of a loan than later periods, but it is not "front loading" or something shady, it's just math.

How Front-Loaded Loans Work

A repayment mortgage is, by definition, a front-loaded loan. That's because in the early years most of your payments go to paying off the interest. Only a small portion goes toward the principal. As you get deeper into the mortgage term, it switches so the interest portion decreases and you're paying off more of the principal each month.

Why? It's because the lender calculates the interest based on the current outstanding balance of the loan. This balance will start high and decrease as you gradually pay back the principal. The less principal you owe, the less interest will be charged.

Front-Loading Interest In Action

For example, imagine that you've taken out a 30-year repayment mortgage for $100,000 at a fixed interest rate of 4 percent annually. Per month, you'll pay $477 excluding insurance and taxes – that's $5,724 per year. We'll work with the annual figures to make the math easier.

In the first year, the interest charge will be $4,000 ($100,000 x 4 percent), with the remaining $1,724 ($5,724 - $4,000) going toward the principal. The outstanding mortgage balance as you enter year two is $98,276 ($100,000 - $1,724). In year two, your payments will stay the same ($5,724 per year), but now the interest charge will be approximately $3,931 ($98,276 x 4 percent) while the principal payment will be $1,793 ($5,724 - $3,931). That's $69 more per year going toward the principal portion of the loan.

Over time, the portion of the payment that's allocated toward the principal will get larger, and the portion allocated to the interest will get smaller. That's because you've paid money toward the principal amount, thus reducing it, and the interest is calculated on a smaller balance.

Is the Mortgage Front-End Loaded? - The Mortgage Professor

This article rebuts the fallacy that lenders make extra profits by loading interest into the early years of the loan

www.mtgprofessor.com

 

[lkjk]

How Front-Loaded Loans Work

A repayment mortgage is, by definition, a front-loaded loan. That's because in the early years most of your payments go to paying off the interest. Only a small portion goes toward the principal. As you get deeper into the mortgage term, it switches so the interest portion decreases and you're paying off more of the principal each month.

Why? It's because the lender calculates the interest based on the current outstanding balance of the loan. This balance will start high and decrease as you gradually pay back the principal. The less principal you owe, the less interest will be charged.

Front-Loading Interest In Action

For example, imagine that you've taken out a 30-year repayment mortgage for $100,000 at a fixed interest rate of 4 percent annually. Per month, you'll pay $477 excluding insurance and taxes – that's $5,724 per year. We'll work with the annual figures to make the math easier.

In the first year, the interest charge will be $4,000 ($100,000 x 4 percent), with the remaining $1,724 ($5,724 - $4,000) going toward the principal. The outstanding mortgage balance as you enter year two is $98,276 ($100,000 - $1,724). In year two, your payments will stay the same ($5,724 per year), but now the interest charge will be approximately $3,931 ($98,276 x 4 percent) while the principal payment will be $1,793 ($5,724 - $3,931). That's $69 more per year going toward the principal portion of the loan.

Over time, the portion of the payment that's allocated toward the principal will get larger, and the portion allocated to the interest will get smaller. That's because you've paid money toward the principal amount, thus reducing it, and the interest is calculated on a smaller balance.

Is the Mortgage Front-End Loaded? - The Mortgage Professor

This article rebuts the fallacy that lenders make extra profits by loading interest into the early years of the loan

www.mtgprofessor.com

We are saying the same thing, saying it's "front loaded" makes it sound like they are doing something other than just how math works.

 

[JoeCo]

The banks don't "front load" interest, you're just paying interest on the principle, which decreases through time and therefore you pay less interest per payment through time. Because of this, amortization schedules will show that you are paying more in interest in earlier periods of a loan than later periods, but it is not "front loading" or something shady, it's just math.

How Front-Loaded Loans Work

A repayment mortgage is, by definition, a front-loaded loan. That's because in the early years most of your payments go to paying off the interest. Only a small portion goes toward the principal. As you get deeper into the mortgage term, it switches so the interest portion decreases and you're paying off more of the principal each month.

Why? It's because the lender calculates the interest based on the current outstanding balance of the loan. This balance will start high and decrease as you gradually pay back the principal. The less principal you owe, the less interest will be charged.

Front-Loading Interest In Action

For example, imagine that you've taken out a 30-year repayment mortgage for $100,000 at a fixed interest rate of 4 percent annually. Per month, you'll pay $477 excluding insurance and taxes – that's $5,724 per year. We'll work with the annual figures to make the math easier.

In the first year, the interest charge will be $4,000 ($100,000 x 4 percent), with the remaining $1,724 ($5,724 - $4,000) going toward the principal. The outstanding mortgage balance as you enter year two is $98,276 ($100,000 - $1,724). In year two, your payments will stay the same ($5,724 per year), but now the interest charge will be approximately $3,931 ($98,276 x 4 percent) while the principal payment will be $1,793 ($5,724 - $3,931). That's $69 more per year going toward the principal portion of the loan.

Over time, the portion of the payment that's allocated toward the principal will get larger, and the portion allocated to the interest will get smaller. That's because you've paid money toward the principal amount, thus reducing it, and the interest is calculated on a smaller balance.

Is the Mortgage Front-End Loaded? - The Mortgage Professor

This article rebuts the fallacy that lenders make extra profits by loading interest into the early years of the loan

www.mtgprofessor.com

I'm not a banker or anything so I'm not claiming to know the exact proper phrasing, I was just describing it as how I saw it through my experiences over the years with loans. Being young and dumb once(or still but not as young), believing my payments from the start would reflect the interest rate I agreed to (or thought I did, again young and dumb), rather than a sliding scale to guarantee the bank gets theirs should you not keep the vehicle the full loan period.

I only bring this up for others who may not know, or people that don't keep their vehicles for the full loan period, to get the full picture of what they will be paying and to weigh out the benefit of going 0% vs rebates.

 

[Silent Bob]

We are saying the same thing, saying it's "front loaded" makes it sound like they are doing something other than just how math works.

It is the way the math works for the current way most loans are structured. It is that way because financial institutions have chosen to structure the loan this way. I am not saying there is anything dishonest about any of it. There are many ways to do a loan that would not be "front-loaded".

I would hope our financial institutions are good at math.

 

[Howie Dub]

Hi everyone! Looking to get a Ram 1500 Limited. Wanted to see if this was a good deal.

MSRP $78,985
with 0% financing $69,235
conventional financing $67,985

I'm in CA and it's better than any of the deals I can find around here. What do you guys think? Thanks!

 

[Silent Bob]

$67985 is a 13.92% decrease of $78,985

In my opinion you should be getting at least 16% off the MSRP including rebates and incentives. The total number you should be using to determine your percentage off should include the total (with rebates and incentives) before trade in, taxes, and any required government fees. Your number should include dealer add-ons you did not request and any dealer fees not listed on the factory invoice, document fees, prep fees, etc. You can use one of these two links to find the factory MSRP and invoice price of the truck and all options. LINK LINK

Keep in mind that some trim levels, typically Big Horn, often have much larger incentives allowing them to get into the larger percentage off.

Special financing, such as the current 0%, will also skew these numbers. Another way to calculate if you are getting a good deal is that you want 5% to 8% off the invoice price before incentives/rebates.

Try For More 14% to 15%
Good Discount 16% to 18%
Great Discount 19% to 23%
Amazingly Rare Discount 24% or more

 

[Silent Bob]

I'm in CA and it's better than any of the deals I can find around here. What do you guys think? Thanks!

If you are in California I would contact Phillip, Aaron would be another great option.

Phillip Olson, General Sales Manager at Bud Clary in Washington State
Tell him Silent Bob from 5thGenRams Forum sent you.
Cell 360-434-2929 (text is great)
[email protected]

Aaron Ginsburgh, New Car Sales Manager at Mark Dodge in Louisiana
Tell him Silent Bob from 5thGenRams Forum sent you.
Cell 318-792-1220 (text is great)
[email protected]

 

[Howie Dub]

Thanks Silent Bob. The quote was from Aaron. Forgot to mention that earlier. He had someone named Tony contact me with the price.

 

[Silent Bob]

Thanks Silent Bob. The quote was from Aaron. Forgot to mention that earlier. He had someone named Tony contact me with the price.

Do your financing prices include taxes?

Try Phillip as well. He is usually a bit lower than Aaron.

 

[Howie Dub]

No, doesn't include taxes. Figure that's the same everywhere. I checked Phillip's site and they don't have the build I want on the lot. Aaron does...I guess that's the price to pay to get it sooner rather than later. Thanks Silent Bob