Editors note: Welcome to our first installment of Views from the front lines. In this series we will be looking at the 2019 Ram 1500 from a dealership management perspective. Note that these views do not necessarily reflect the views of 5thGenRams.com
With the launch of the 2019 All-New Ram 1500 in full swing, one question still remains – what’s this thing going to cost?
Currently a Ram 1500 DS (2018 Model Year) ranges from $27,000 MSRP to $56,795 MSRP USD with rebates readily available throughout the model year to strengthen the “deal” one may get. DS, the current generation of Ram 1500, also provides a dealer with a decent profit margin to further supply a good deal to their clients; from my own experience, $2,000-$6,000 depending on trim and options. So far, FCA has kept their lips sealed with regards to pricing, with an announcement arriving March 16th according to sources not within FCA.
In the spirit of speculation – let’s try to deduce what we can expect for the new Ram 1500’s price point.
What We Know –
In 2019 the DT will only be offered in Big Horn, Rebel, Laramie, Laramie Longhorn, and Laramie Limited trim configurations (and Sport for Canada); leaving the entry level trims to the past-generation DS model Ram 1500 to continue production into the 2019 Model Year. One can expect the 2019 DS Ram to continue at the MSRP currently listed, with stronger rebates to help clear the lot toward the end of the model year. Where the DS is currently priced provides some indication of pricing, however, FCA’s new Wrangler gives great insight into their pricing strategy.
This year, the all-new Jeep Wrangler (JL) was launched and pricing has already been announced. Using the price increase applied from the out-going Jeep Wrangler JK model to the all-new Jeep Wrangler JL we should be able to get a pretty good indication of the increase to expect.
Last-Gen JK Jeep Wrangler – Starting at $25,095 USD after destination, up-to $53,685 USD after destination for the top trim level with all options applied .
All-New JL Jeep Wrangler – Starting at $28,190 USD after destination, up-to $56,365 USD after destination for the top trim level with all options applied.
$3,000 USD – give or take, in price difference between the generations.
This does not tell all of the story, as Jeep Wrangler rarely provides a substantial rebate from FCA, unlike the Ram 1500 (and the entirety of the half-ton segment in North America) which typically dons a 4 digit discount throughout the model year, sometimes even surpassing the $10,000 range. The all-new Jeep Wrangler also provides a healthy profit margin for dealers, more than the prior generation had.
What We Think –
Using the above thought-process, one can assume a price increase of at least $3,000 from MSRP. “From MSRP” is the key, however, as it is unlikely FCA will be providing any significant rebates on the all-new Ram 1500. Utilizing current regional rebates in my parts of $7,750 CAD off MSRP, coupled with the assumed $3,000 price increase, I foresee the all-new Ram being about $10,000 USD more than the out-going generation after all rebates are applied.
MSRP will be similar, discounts will not… at least not until the DS Ram is officially put to rest.
Rob P.
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