Ram is the Fastest Depreciating New Truck?

[Granite2WD]

Avoid These Pickups With Unreasonably High Depreciation Rates

Buying a new pickup truck is not a cheap endeavor. In fact, odds are that you’re going to spend a significant amount on that shiny new truck of yours.

www.motorbiscuit.com

One thing that this article overlooks, in my opinion, is the average discount from MSRP. If Ram depreciates 49% over the first 5 years but the average purchase price is say 20% off MSRP, shouldn't the depreciation reflect that discount?

Assuming an average discount of 20%, I don't think 29% depreciation over 5 years is good, but not the end of the world either.

Also, 5th gens haven't been out for 5 years and I'm hopeful that the 5th gen will depreciate slower than 4th gens.

 

[TravisJ]

Depreciation rates always seemed dumb to me for that reason. Toyota owners love bragging about depreciation rates and resale value, but Toyota MSRPs are expensive from the start and many of their cars can sell for dang close to the MSRP. If you pay $8k more for a comparable car and 10 years from now it has an extra $6k in resale value are you really winning? Especially if you were financing that 8K?

 

[IvoryHemi]

Ram is 49.3% vs segment average of 44.1% ? Who cares about 5%

 

[SD Rebel]

Depreciation on that article is based on MSRP, the big 3 trucks already tack $10,000 or so off MSRP from the get go, which that article doesn't take into account. It's a built-in discount that everybody knows. There are articles that take that into account and makes the RAM one of the best trucks in terms of low deprecation.

I got 25% off my RAM, it's currently worth more than what I paid for it. So that's reality.

Then there is just pure volume. The F150 is just a few % off the Tundra, the highest retention of all full size. But there are 8-10 times more F-series sold than Tundras, of course the Tundra will retain higher value over the Ford purely because there are less available for sale on the used market.

Even taking these numbers by face value, the RAM still has great resale over most of the auto market, even based on MSRP, just not as strong as the others in their category.

 

[Granite2WD]

Ram is 49.3% vs segment average of 44.1% ? Who cares about 5%

Well if you read the prices paid threads you will see many people, but I see your point.

 

[HeavyRotation]

Literally everything on "Motorbiscuit" site is garbage. I've clicked on maybe ten of their stories the last year and every single one is either wrong in the execution or just hilariously stupid in premise. It's people who know less than nothing about automobiles writing click bait titles with zero substance. Also, the writing itself commonly has stilted diction indicative of non-native English speakers.

 

[SD Rebel]

I need to find the article, but there is one based on actual paid prices (instead of MSRP) that actually puts the RAM ahead of the F-series, only behind the Silverado & Tundra as the highest resale of full size trucks.

What's cool is the article is about total resale, putting the RAM in the Top 10 of all vehicles sold in 2020. The highest resale was the Jeep Gladiator, then Tacoma, Silverado and RAM.

 

[Rexx]

Msrp was 90k on my truck (Canadian).

I paid 73k for it.

I’ll have had the truck a full year tomorrow.

Auto trader in my area tells me my truck should sell for 68-72k.

I’m perfectly okay with that.

 

[IvoryHemi]

Well if you read the prices paid threads you will see many people, but I see your point.

5% off the purchase price and 5% depreciation over a 5 year time frame are different things. Article calling that “extremely disappointing” is a bit of exaggerating .

 

[devildodge]

Motorbiscuit is a click bait blog. If you look they probably have an article saying RAM holds the best value.

Look at there posts or articles if you may. They will have one that says stay away from the challenger Hellcat. And another article that says stay away from the mustang.

Then one that says challenger is the best muscle car anf one that says mustamg is the best pony car.

And they constantly steal info from other sources and write it as their own a week later.

Good for conversation...but not for a factual argument

 

[mikeru82]

I'd like to see their list of trucks which rate above average for depreciation. If I'm not mistaken, that would leave Toyota (and Honda?) unless they're also comparing HD trucks. In which case makes this article even more meaningless because HD's are in a different category than duty light trucks.

 

[jimchi]

I plan on keeping my truck for at least 10 years. Depreciation wasn’t a factor in my buying decision.

I will say that when I sold my 2009 G8 a few months ago, I got just under 50% of the purchase price. The G8 is a rare but desirable car right now on the used market. I don’t expect my Ram to be the same in a decade.

 

[z0n3]

I had a buddy arguing with me that Tundras are better trucks than RAMs and his main point was that they depreciate slower than RAM's... Problem with his argument is I don't typically buy new vehicles often. I will have my truck for 8-10 years. The one time I didn't own a new vehicle for long was my 2019 Bighorn I traded for my Laramie and I traded it in for more than I paid for it.

 

[Jako]

Still have my 2001 Dodge SLT 1500 with 83,000 miles, I laugh at depreciation. Sometimes I cry at repairs though.

 

[SD Rebel]

I plan on keeping my truck for at least 10 years. Depreciation wasn’t a factor in my buying decision.

I will say that when I sold my 2009 G8 a few months ago, I got just under 50% of the purchase price. The G8 is a rare but desirable car right now on the used market. I don’t expect my Ram to be the same in a decade.

But likely will be close in terms of resale. Trucks have the highest resale of any segment, the RAM is only a few percentage points away from the best in the segment. The RAM isn't actually last in reality, but even if you base it on that report, it's still has one of the best resale of all vehicles and in the top 10 of value retention.

 

[devildodge]

My resale plan is. I do not resale them.

We have a 99 an 03 and a 15 all RAM 2500s. All paid for and earning their keep.

Resale value means nothing to me, so I sleep easy at night. 275k on the 99 156 k on the 03 and 146k on the 15. I drive them and use them. Why spend money on something to sit and stare at...so i can trade a low mileage truck?!!?

Good times.

 

[LITTLEREBEL]

Just browsing around the truck market I have noticed that the value of my truck is down a good bit for a truck less than 2 years old.

 

[Richard320]

I really couldn't care less. I'm closing in on 60 and if I keep this truck as long as I kept the Cherokee it replaced, I probably won't be allowed to drive it. Or I'll be dead.

 

[SD Rebel]

I think some people are getting the wrong idea here, that RAM has high depreciation, that's not the case.

All that article is stating is that RAM has the lowest depreciation in terms of full size trucks, however, the best and worst is only separated by a few percentage points.

If you click on the link provided in the article, you will notice that RAM compared to all other vehicles sold has actually great resale value. Being last (by a few percentage points) in the best segments for resale value isn't a bad thing.

In short, your truck has fantastic resale compared to most vehicles sold. 5% off an F150 after 5 years, that's nothing to worry about, especially if your higher than the majority of all other vehicles on the road.

 

[Scap]

If you make any expensive purchase based on what you hope you'll be able to sell it for in some future scenario, are you really making a good purchase?

I don't buy anything for anyone else's gratification or some perceived future worth on something I plan to use. If I'm lucky enough to recover some of what I spent, great. Otherwise, I'm not losing sleep over it. One caveat though, I typically keep my stuff until it isn't worth giving away.