Used Ram prices up 28.8% from last year

[Willwork4truck]

The press is finally waking up to this “bubble”. This from my local city online news:
BUSINESS

Some used vehicles now cost more than original sticker price​

Posted June 22, 2021 3:51 p.m. EDT
Updated June 23, 2021 9:33 a.m. EDT
By TOM KRISHER, AP Auto Writer

“DETROIT — When it was new, the window sticker price on a typical 2019 Toyota Tacoma SR double cab pickup was just under $29,000. Two years later, dealers are paying almost $1,000 more than that to buy the same vehicle, even though it's used.

Then they're selling it to consumers for more than $33,000.

Welcome to the wacky world of U.S. car and truck sales, where the pandemic and a global shortage of computer chips have pushed prices to record levels.

In the past year, used vehicle prices on average have climbed 30%, according to Black Book, which tracks car and truck data. That's created many crazy situations where high-demand vehicles are selling for more than they did when they were new, said Alex Yurchenko, the company's senior vice president of data science.

“The market is very strange right now,” said Yurchenko. “Dealers need the inventory, so they are paying lots of money for their vehicles on the wholesale market.”

Yurchenko has found 73 models of 1- to 3-year-old vehicles being sold at auctions (where dealers buy their vehicles) for prices above their original sticker, which is called the manufacturer's suggested retail price.

Used vehicle price increases accounted for one-third of the large rise in inflation last month, according to the Labor Department. Prices shot up a record 10% in April and another 7.3% in May, as inflation spiked 5%, the biggest 12-month increase since 2008. The average used vehicle cost $26,457 this month, according to Edmunds.com.’

(end of copied portion of article)

 

[Willwork4truck]

I checked the AutoNation dealer and was surprised to see a 2019, 2500, 4x Cummins for $59.9k. It's even certified. Thats not a bad price for a diesel 2500 4x. Bet they'd come down a couple G's... Still doesn't fit in my garage though.

2019 Ram 2500 Big Horn $59,995​

• 6.7L STRA 6 CYL6-SPEED A/T FOUR WHEEL DRIVE
• Exterior Color : Bright White Clearcoat Interior Color : DIESEL GRAY/BLACK
• Mileage : 18,546 Miles
• Stock # : KG624462
• VIN : 3C6UR5DL2KG624462

​

​

 

[Redfour5]

I was getting repairs on my 2015 Outdoorsman with 75K miles on it (paid 35K/new) and it is going to be a problem as it was stopping on the highway (engine shut off/no warning) and telling me to put it in park and restart at 65 mph with the 6500 lb trailer on it and NOT throwing any codes... It would restart no problem and go another day or two as I headed home... The techs were stumped and would need to keep it and wold be going national and corporate for info on what it might be... I have a 200 deductible on my extended warranty...

The guy who buys the cars was there and I, just for poops and giggles, asked what he would give for mine with him knowing the problems. He went back and looked and said 20K. A year ago it was worth 15K when I paid off the lease... True car said a range of like 19 to 21K (average condition) being at the high end without the problem I brought it in for...and I had been shaking my head over that in disbelief. AND... there was a built to serve model (silver billet) that checked my boxes including the trailer package... And 3200 in incentives... I had to finance through Chrysler Capital.... So, I said to myself, My old truck just let me down pretty bad three times, dangerously, they could NOT find the problem, and a truck I wanted was sitting on the lot and I now had 20K in equity on my six year old 1500. Guess what's sitting in my driveway today... Oh, my credit union will beat their rate by 1.47% knocking over 20 bucks a month off the payment... As soon as the paperwork hits the ground I'm doing that. So, I basically paid what I paid for the 2015 with more stuff...

 

[Willwork4truck]

I was getting repairs on my 2015 Outdoorsman with 75K miles on it (paid 35K/new) and it is going to be a problem as it was stopping on the highway (engine shut off/no warning) and telling me to put it in park and restart at 65 mph with the 6500 lb trailer on it and NOT throwing any codes... It would restart no problem and go another day or two as I headed home... The techs were stumped and would need to keep it and wold be going national and corporate for info on what it might be... I have a 200 deductible on my extended warranty...

The guy who buys the cars was there and I, just for poops and giggles, asked what he would give for mine with him knowing the problems. He went back and looked and said 20K. A year ago it was worth 15K when I paid off the lease... True car said a range of like 19 to 21K (average condition) being at the high end without the problem I brought it in for...and I had been shaking my head over that in disbelief. AND... there was a built to serve model (silver billet) that checked my boxes including the trailer package... And 3200 in incentives... I had to finance through Chrysler Capital.... So, I said to myself, My old truck just let me down pretty bad three times, dangerously, they could NOT find the problem, and a truck I wanted was sitting on the lot and I now had 20K in equity on my six year old 1500. Guess what's sitting in my driveway today... Oh, my credit union will beat their rate by 1.47% knocking over 20 bucks a month off the payment... As soon as the paperwork hits the ground I'm doing that. So, I basically paid what I paid for the 2015 with more stuff...

Thats a great deal for you!

The question I have (and it has nothing to do with your excellent choice) is that just like my brothers defective 2014 DMax he dumped to get a new 2020 Cummins Ram 3500, someone is going to get stuck with a truck that has issues.

Likely the dealer won’t catch it or be able to repair the problem, they won’t have the truck around to replicate it. So what happens to the peep who ends up with it and no warranty?

Thats the hard part about buying used. Now if there is Ford, RAM or Chebbie service history that can be pulled up prior to purchase that would certainly help but what if there isn’t? It’s rolling the dice.

 

[wallyuwl]

I just tried my hand at doing a trade. I bought a 20 1500 Laramie 4WD in April 20 for $42,750, which was off from the MSRP of $56,xxx. (A good buy at the height of Covid concern). My trade offer was $52k if I bought something else from the same dealer. I attempted a 21 Power Wagon ($67k) which they discounted only $3.6k and then a 21 6.7 Longhorn which was no discount at $82k. There was further a used 20 Power Wagon with 29k mi listed at $68k (more than the new) with no discount offered. It became evident to me that I was just shifting money between the trade and new purchase. Normally in my region a 2500 would easily see $10-12k off sticker with incentives/discounts, so really the deal is about the same. To truly take advantage of this market you need to sell the truck now at top dollar, buy a $10k beater and then purchase again 12-18mths from now when incentives/discounts are back.

A good total deal is tough right now. High trade values but high prices on the new one. Sell to Carvana or Auto Nation and buy from Aaron is an option, but you lose dales tax benefits in most states.

My Ltd order is invoice - holdback with a trade value $1k less than carvana and Vroom locked in. It comes out better than selling to one of them and ordering from Mark Dodge and I don’t have to pay to ship.

So deals can be had but it isn't easy. I had to look around at a lot of dealers. Not sure if they would do the same deal today as April 30.

 

[Okie Rn]

I just got $20,000 trade in for my 2013 Ram 2500 tradesman, 155k miles and dented bed towards my 2021 Ram 2500. I was looking at a new one and couldn’t say no after that.

 

[Willwork4truck]

I just got $20,000 trade in for my 2013 Ram 2500 tradesman, 155k miles and dented bed towards my 2021 Ram 2500. I was looking at a new one and couldn’t say no after that.

So tell me, a year ago, with a few less miles, would you have paid $20K for that same truck? (You didn't say if hemi, 4x or mechanical condition but still...)

 

[Willwork4truck]

My 2019 Ltd is still there at AutoNation, edit - 6 weeks now...

Salesman: I just paid $55K for this guy's truck, we can mark it up by $5K and it will fly outta' here."
Crickets for 6 weeks...
Manager: "Remember what you said six weeks ago? It's coming out of your check now..."

 

[User_3336]

The outrageous trade-in / buy offers are falling. My dealer said they are not having to pay outrageous prices at auto auctions. My truck comes in at 1,000 less than what I paid for it. Carvana and Vroom offers aren't as high as they were end of last month / first of this month.

 

[Willwork4truck]

They (Autonation for those not following my saga) dropped the price another $1K today, now it is only $1400 over what they paid me and they had to certify it (thats not free) as well as likely replace the battery. Seems the "really good times" of ultra high value used trucks is done.
(Details in signature below)

 

[IvoryHemi]

They (Autonation for those not following my saga) dropped the price another $1K today, now it is only $1400 over what they paid me and they had to certify it (thats not free) as well as likely replace the battery. Seems the "really good times" of ultra high value used trucks is done.
(Details in signature below)

Nice job cashing in while it was hot

 

[Willwork4truck]

Nice job cashing in while it was hot

Well I was actually thinking I missed out on some $ since so many peeps said they got paid more than it cost them to purchase, but she keeps saying she'd rather have the $ than the truck sitting outside so...
(Edit - If it is still there in 2 days on Monday the 5th of July that will make 7 weeks it's been sitting on their lot.)

I pd about $9K more with taxes/fees than I got 25 months later. W/O taxes fees about $6K more. Had I bought in June of 2019 during that fantastic month with 20-25% off MSRP I likely would have made money or at least broke even.
(But that's not my luck, ever.)

So what's the payload of this?
Fits in the garage anyway.
We in the first world don't know just how good we've got it...

 

[arod412]

I didn't know where to place my specific trade in question. So I will try here.

See my signature below in the type of truck I'm trading in. I only have 3100 miles on it.

With that said, I placed an order for a 2022 big horn back country ( some of you might have seen me post on the orders page).

My question is as follows. I placed an order at my dealer but it will also be the same place I might trade in my truck, due to the taxes transfer being paid on the new truck. However, my issues is that other dealers are offering $3-$4k more than that dealer, so I'm holding out.

Is this a good move to hold out and wait, or should I ask for more for my trade in?

I have another vehicle to drive, but im holding out for the most money I can possibly make on my truck.

Any input would be greatly appreciated.

Owner of a 2020 Ram Laramie (leveled with 2" rc struts and 1" rear spacer on 33.5" toyo open country) , 16 Dodge Charger scat pack and my wife 21 Jeep Wrangler Unlimited Sahara (2.5" rc lift with 35" duratracs)

 

[Willwork4truck]

Depends on your states taxes mostly. That amount would likely exceed what trade taxes would cost you however I don’t know your specifics. You could just do the Vroom, Carvana, Autonation dance (quick info back usually, not counting reconditioning) then you’d have a better idea if the dealer’s offer was fair.

Only you know the true condition of your truck. I knew mine would need the ac tsb and a battery. TSB is free but a pain. Battery is under $200 so no real biggie there. However if you’ve had other issues then maybe roll the dice and move it.
Mine was a pretty trouble free truck but some are not.

 

[stembridge]

My 2015 RAM 2500 Tradesman 4x4 RC/LB/5.7 stickered for $38,830 and I paid $29,642 after discounts and rebates, about 24% off MSRP.

After testing the car buying service waters to see what it might be worth in the current superheated used market, I ended up selling it privately for $27,500, which is $2,142 less than I paid for it after five solid years of use and 63K miles. Dealers were only willing to offer in the low $20K range on the '15 for trade. The highest car buying service offer was $26K (Vroom).

I ordered my new RAM Classic through Aaron at Mark Dodge and got just shy of 10% off MSRP. Deducting the proceeds from selling the '15 , I'll be about $12.5K out of pocket for a brand new truck.

I figure once new truck deliveries are no longer constrained by chips, etc., used prices will quickly drop and it will take a while before dealers widely discount stock units. I saw this as a window of opportunity and am pretty happy with the outcome.

es

 

[arod412]

Depends on your states taxes mostly. That amount would likely exceed what trade taxes would cost you however I don’t know your specifics. You could just do the Vroom, Carvana, Autonation dance (quick info back usually, not counting reconditioning) then you’d have a better idea if the dealer’s offer was fair.

Only you know the true condition of your truck. I knew mine would need the ac tsb and a battery. TSB is free but a pain. Battery is under $200 so no real biggie there. However if you’ve had other issues then maybe roll the dice and move it.
Mine was a pretty trouble free truck but some are not.

It's tough to figure out. Truck is like new, and according to their site, they are selling a 2019 laramie with 25k miles, and the price on that one is literally $9k orr than what they are offering me. My truck is 1 year newer with 23k less miles.

Vroom, carvana has offered more that that dealer, however, if I made the deal with those companies, I would lose out on the taxes for the trade in (which would be roughly $3k) that I can use for the 2022 truck I ordered.

It's nice to have options, but im just going to hold out until I get a better offer at that dealer.

They are missing out because they can have my truck on their lot right now if they wanted to make a better offer. It's not like I'm asking for $10k more...just asking for $2-3k more...to match what is similar on their lot.


Owner of a 2020 Ram Laramie (leveled with 2" rc struts and 1" rear spacer on 33.5" toyo open country) , 16 Dodge Charger scat pack and my wife 21 Jeep Wrangler Unlimited Sahara (2.5" rc lift with 35" duratracs)

 

[deanno33]

Man...I was getting an oil change with my 2020 Laramie and they started talking with me about trading in. I hadn't even thought of it as my truck is only 14 months old and has 16,000 miles. Sticker on my Laramie was 59,300 and I ended up paying 48,700 after rebates and discounts. They are now offering me 52,000 for the truck. I looked at KBB and the range is 52,000-56,000 for trade value. That's crazy. I might just order up a loaded 2022 Big Horn (around 56,-57k) and get Katzkin added. It looks like decent rebates for July but dealer discounts are non-existent. Still may not be bad though if rebates bring it down to 54k. Decisions that I wasn't expecting when I went in for an oil change....

 

[JoeCo]

It's tough to figure out. Truck is like new, and according to their site, they are selling a 2019 laramie with 25k miles, and the price on that one is literally $9k orr than what they are offering me. My truck is 1 year newer with 23k less miles.

Vroom, carvana has offered more that that dealer, however, if I made the deal with those companies, I would lose out on the taxes for the trade in (which would be roughly $3k) that I can use for the 2022 truck I ordered.

It's nice to have options, but im just going to hold out until I get a better offer at that dealer.

They are missing out because they can have my truck on their lot right now if they wanted to make a better offer. It's not like I'm asking for $10k more...just asking for $2-3k more...to match what is similar on their lot.


Owner of a 2020 Ram Laramie (leveled with 2" rc struts and 1" rear spacer on 33.5" toyo open country) , 16 Dodge Charger scat pack and my wife 21 Jeep Wrangler Unlimited Sahara (2.5" rc lift with 35" duratracs)

I was in about the same boat for a while, was going to trade it in to save about $2500 on taxes. However, my trucks value grew to be $5,000 more than my agreed trade in value, and then $7,000 and finally over $8,000 more than my trade. Realistically I was going to be happy getting $3,000 more than my trade in value, to cover the difference in taxes and a little extra. Anything more than that became a no brainer especially once it got so high. Just something to keep in mind, definitely worth keeping an eye on what you can get for it elsewhere.

For the record I ended up selling to autonation as well.

 

[Willwork4truck]

My 2015 RAM 2500 Tradesman 4x4 RC/LB/5.7 stickered for $38,830 and I paid $29,642 after discounts and rebates, about 24% off MSRP.

After testing the car buying service waters to see what it might be worth in the current superheated used market, I ended up selling it privately for $27,500, which is $2,142 less than I paid for it after five solid years of use and 63K miles. Dealers were only willing to offer in the low $20K range on the '15 for trade. The highest car buying service offer was $26K (Vroom).

I ordered my new RAM Classic through Aaron at Mark Dodge and got just shy of 10% off MSRP. Deducting the proceeds from selling the '15 , I'll be about $12.5K out of pocket for a brand new truck.

I figure once new truck deliveries are no longer constrained by chips, etc., used prices will quickly drop and it will take a while before dealers widely discount stock units. I saw this as a window of opportunity and am pretty happy with the outcome.

es

Damn somebody wanted a 3/4 Tradesman pretty bad.
Good deal for you!

 

[Willwork4truck]

Man...I was getting an oil change with my 2020 Laramie and they started talking with me about trading in. I hadn't even thought of it as my truck is only 14 months old and has 16,000 miles. Sticker on my Laramie was 59,300 and I ended up paying 48,700 after rebates and discounts. They are now offering me 52,000 for the truck. I looked at KBB and the range is 52,000-56,000 for trade value. That's crazy. I might just order up a loaded 2022 Big Horn (around 56,-57k) and get Katzkin added. It looks like decent rebates for July but dealer discounts are non-existent. Still may not be bad though if rebates bring it down to 54k. Decisions that I wasn't expecting when I went in for an oil change....

She-it, I'd have been divorced and shot if I had come home a from the last "oil change" without the truck...