Pricing and resale value?

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65Plymouth

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Gents. I am considering a few PW Tradesmans and am working on deals with the dealers. From what I read, 20% off MSRP is a really good deal AND $500-$1000 below invoice is good as well.

I have had one dealer respond with a price that is $1383.00 under invoice (didnt tell me what invoice is) The truck has a sticker $50,625.00 and the dealer quoted me $41,367.00 Plus TTL.
Thoughts? Can I do better?

Also, before I pull the trigger on a PW, I am wondering if their resale value is similar to a regular 2500 or if they generally get higher resale values because of the special options. I guess all the offroad equipment can work for you, or against you in a resale/trade in scenario. You may possibly lower any interest in your truck to those people that are looking for the off road options.

Thoughts on this?

Thanks
 

dexter

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OK,
I wasn't going in for a 2500 Big Horn but the price and options got me. I didn't even want the 4x4 or 5th wheel prep. I don't need the 4x4, anti spin is good enough. I wanted a set up for towing.

I say I was at the dealer ship for about 6 hours making the deal and it was the final day of the month.

Sticker price $50,555.00

$39,524 Price Excluding misc fees
$598 - admin.
$40,122 Subtotal
-1,600 - Trade in 2000 Dakota with 210,000 miles
38,522 - Final price excluding taxes/fees

So the number to focus on is the subtotal. I got 20.6% off the sticker price. I think I got a fair price, not fantastic, fair.

Now the Dakota was 16 years old with $210,000 miles on it. Could I have gotten more on a private sale?

This 6.47L Big Horn 4x4 has everything except a bed liner. It is even prepped for a fifth wheel.




Big
Horn Badge
180 Amp Alternator
115V Auxiliary Power Outlet
Folding Flat Load Floor Storage
Integrated Voice Command w/Bluetooth
Trailer Tow Mirrors
GPS Antenna Input
Media Hub
Uconnect Access
Power Lumbar Adjust
Next Generation Engine Controller
Charge Only Remote USB Port
Bright/Bright Billets Grille
Steering Wheel Mounted Audio Controls
Rear 60/40 Split Folding Seat
Exterior Mirrors w/Supplemental Signals
Front Center Seat Cushion Storage
5th Wheel/Gooseneck Towing Prep Group
Radio: Uconnect 8.4
4.10 Rear Axle Ratio
Center Hub
Engine: 6.4L V8 Mid Duty HEMI MDS
Anti-Spin Differential Rear Axle
Wheels: 18" x 8.0" Polished Aluminum
Hemi Badge
Premium Cloth 40/20/40 Bench Seat
Power Black Trailer Tow Mirrors
Transmission: 6-Speed Automatic

ParkSense Rear Park Assist System
Exterior Mirrors Courtesy Lamps
Electronically Controlled Throttle
Underhood Lamp
Clearance Lamps
Big Horn Regional Package
GVWR: 10,000 lbs
Front Armrest w/Cupholders
Storage Tray
Exterior Mirrors w/Heating Element
40/20/40 Split Bench Seat
Nav-Capable! See Dealer for Details
6 Month Trial
Remote Start System
Black Exterior Mirrors
Remote SD Card Slot
ParkView Rear Back-Up Camera
Quick Order Package 22Z Big Horn
Fog Lamps
50 State Emissions
8.4" Touchscreen Display
SiriusXM Satellite Radio
For Details Visit DriveUconnect.com
Leather Wrapped Steering Wheel
Power 10-Way Driver Sea
Chrome Step Rails
 
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dexter

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Also, before I pull the trigger on a PW, I am wondering if their resale value is similar to a regular 2500 or if they generally get higher resale values because of the special options. I guess all the offroad equipment can work for you, or against you in a resale/trade in scenario. You may possibly lower any interest in your truck to those people that are looking for the off road options.

Thoughts on this?

Thanks

My gut is that if you sell a PW it to a dealer - you'll get a small premium. But they will probably say what I wrote in the next paragraph.

If you try to make a PW private sale - you have a small number of people who want a PW for off road, so I doubt a PW will get much of a premium over a regular 2400.

Again my gut feeling is that with selling a used 2500 the buying pool is either workers who will be going for the lowest price and those looking to tow a RV. Those looking to tow a RV will be looking for a well maintained vehicle.
My guess is that Tradesman/SLT/Big Horn will have average depreciation. Trims above those levels won't recoup their extra cost. Again, all my perspective.
 
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dexter

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I have had one dealer respond with a price that is $1383.00 under invoice (didnt tell me what invoice is) The truck has a sticker $50,625.00 and the dealer quoted me $41,367.00 Plus TTL.
Thoughts? Can I do better?



Thanks

That's 18% off sticker.

Is the truck on the lot or is he ordering it? If on the lot you have more leverage for a better price.

Also, it depends how good a negotiator you are - definitely let the dealer know you are shopping around.
 
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65Plymouth

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That's 18% off sticker.

Is the truck on the lot or is he ordering it? If on the lot you have more leverage for a better price.

Also, it depends how good a negotiator you are - definitely let the dealer know you are shopping around.


Sound advice. The truck is on their lot and yes, that is right around 18% off MSRP. They do know that I am shopping around and even looking out of state. Should I just flat out ask for 20% off MSRP and if they agree, head in and sign papers?

Yeah, I figured as much on the resale. As long as it holds it's value similar to a regular 2500 I am fine with that. I plan on hanging on to it for 7-10 years.
 

dexter

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Sound advice. The truck is on their lot and yes, that is right around 18% off MSRP. They do know that I am shopping around and even looking out of state. Should I just flat out ask for 20% off MSRP and if they agree, head in and sign papers?

You should see if you can get the VIN - that will tell you when it was built and how long they had it in their inventory - the longer the more they would like to get it off the lot.

20% - no because they will counter offer with more.

First you need to make sure the first number they gave you is out the door except for tax and title. I've negotiated prices and then they tried to add things like advertising fees!

Go to the Ram and TruCar sites to see what discounts are being offered.

Incentives, Cash Allowances and Discounts on Ram Trucks

Now
50,625 Sticker
41,367 Sale Price
9,258 Savings
18.3% Percent off

20% off
50,625 Sticker
40,500 Sale Price
10,125 Savings
20.0% Percent off

Where you want to be
50,625 Sticker
40,000 Sale Price
10,625 Savings
21.0% Percent off

Start you negotiations here if not less and be prepared to earn the $ by putting in the time. I'd start out lower and show the dealer the current insentives being given for the Big Horn.
50,625 Sticker
39,000 Sale Price
11,625 Savings
23.0% Percent off

I got $11,000 of the sticker price and paid 40K before the trade in. Look at the discounts being given now on the Big Horn. That is why I think I got a fair price - not fantastic.

Do you have a trade in?
Do you have your loan set up already?
 
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65Plymouth

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You should see if you can get the VIN - that will tell you when it was built and how long they had it in their inventory - the longer the more they would like to get it off the lot.

20% - no because they will counter offer with more.

First you need to make sure the first number they gave you is out the door except for tax and title. I've negotiated prices and then they tried to add things like advertising fees!

Go to the Ram and TruCar sites to see what discounts are being offered.

Incentives, Cash Allowances and Discounts on Ram Trucks

Now
50,625 Sticker
41,367 Sale Price
9,258 Savings
18.3% Percent off

20% off
50,625 Sticker
40,500 Sale Price
10,125 Savings
20.0% Percent off

Where you want to be
50,625 Sticker
40,000 Sale Price
10,625 Savings
21.0% Percent off

Start you negotiations here if not less and be prepared to earn the $ by putting in the time. I'd start out lower and show the dealer the current insentives being given for the Big Horn.
50,625 Sticker
39,000 Sale Price
11,625 Savings
23.0% Percent off

I got $11,000 of the sticker price and paid 40K before the trade in. Look at the discounts being given now on the Big Horn. That is why I think I got a fair price - not fantastic.

Do you have a trade in?
Do you have your loan set up already?

Thanks for the advice. Looks like most of the incentives are on the 1500 and not the 2500. I have a feeling the best I might do is 21% off MSRP. I will give it a shot. Problem is, my options are limited in that I have a select few colors I am considering and certain options that are must haves and certain that I will not accept. Really scales down the number of available vehicles within 500 miles.
 

keithert

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My1500 stickered for 50k and I got it for 40k. I had it appraised last week by CarMax and they offered 29k. KBB has similar numbers. Resale on these is terrible.

Sent from my LGLS992 using Tapatalk
 

dexter

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Thanks for the advice. Looks like most of the incentives are on the 1500 and not the 2500. I have a feeling the best I might do is 21% off MSRP. I will give it a shot. Problem is, my options are limited in that I have a select few colors I am considering and certain options that are must haves and certain that I will not accept. Really scales down the number of available vehicles within 500 miles.

Probably not a lot within 500 miles for a 2016 - the 2017 will be coming out soon.

there is some discount on the 2500 $3,500
2016 Ram 2500 Heavy Duty Work-Ready Truck
 

dexter

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My1500 stickered for 50k and I got it for 40k. I had it appraised last week by CarMax and they offered 29k. KBB has similar numbers. Resale on these is terrible.

Sent from my LGLS992 using Tapatalk

What trim do you have?

That is where you get killed on resale - the higher the trim the greater the hit.
Middle trim is probably the best for resale.

I plan on keeping it for many years.
 
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65Plymouth

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My1500 stickered for 50k and I got it for 40k. I had it appraised last week by CarMax and they offered 29k. KBB has similar numbers. Resale on these is terrible.

Sent from my LGLS992 using Tapatalk

I just got this deal quoted from another dealer on the same truck but different color.

2016 2500 Tradesman PW

$50,350.00 MSRP

$46,516.00 With FCA "friends" discount
-$ 1,390.00 Dealer discount
-$ 4,000.00 Rebate (not sure how this is determined considering the only thing I can find for 2500's is $3500.00 cash rebate for the summer clearance... Ahh.. I may get $500 for financing)
+$ 247.00 Doc Fee
+$ 2,720.99 Tax
______________________
$44,093.83 OTD

This is a bit better but not much...

I think I can do better. Thoughts?
 
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keithert

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I have a sport with a good number of options like sunroof and nav.

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Cuevas

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I just purchased my 2016 Powerwagon Tradesmen about a month ago. MSRP was 51,630 and I purchased it for 41k. I work for Chrysler so I purchased it for $750 behind invoice. I also purchased the max care life time warranty for $100 over invoice so my drive out was 45k. I could of possibly gotten it for another $500-1000 off, if I wanted to keep spending days n hours negotiating at the dealer. But the dealer worked with me and I am content. Plus the options and color I wanted were very limited. They went to OK to get mine. Personally, I am very happy with my deal. I believe it was fair.
 
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rvj

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Everyone talks about low resale value but look at it this way. A new truck will lose about 25% of its value when it goes from new to used. If MSRP is $50,000 and you get it for $40,000 you have to figure it will depreciate about 25% or about $10,000. That make it worth about $30,000. If you were offered about $29,000 for it, that is about par. To get more than that you will probably have to sell it to someone your self as the dealer has to make a profit on it or it isn't worth his time to mess with it.
 

Hootbro

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Everyone talks about low resale value but look at it this way. A new truck will lose about 25% of its value when it goes from new to used. If MSRP is $50,000 and you get it for $40,000 you have to figure it will depreciate about 25% or about $10,000. That make it worth about $30,000. If you were offered about $29,000 for it, that is about par. To get more than that you will probably have to sell it to someone your self as the dealer has to make a profit on it or it isn't worth his time to mess with it.

People forget that RAM is one of the most heavily discount full size truck brands out there in terms of rebates and dealer incentives. MSRP for RAM is a mythical number for the most part. Trade in dealers know this and start the trade in values from the average selling prices and not the base MSRP.

The less a brand discounts, the more trade in value a brand has. That is why Toyota Tundra and Tacoma's have excellent trade in value is because most times the sell at MSRP and not 10%-20% below MSRP like many RAMS do.

RAMS make ****** financial sense if you are a person that trades every 2-4 years. You buy a RAM for the long haul if you want to get maximum value out of it.
 

Cuevas

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People forget that RAM is one of the most heavily discount full size truck brands out there in terms of rebates and dealer incentives. MSRP for RAM is a mythical number for the most part. Trade in dealers know this and start the trade in values from the average selling prices and not the base MSRP.

The less a brand discounts, the more trade in value a brand has. That is why Toyota Tundra and Tacoma's have excellent trade in value is because most times the sell at MSRP and not 10%-20% below MSRP like many RAMS do.

RAMS make ****** financial sense if you are a person that trades every 2-4 years. You buy a RAM for the long haul if you want to get maximum value out of it.


Absolutely, they offer lifetime warranty on these trucks. I plan on keeping mine for a long time. So I purchased it
 
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