2020 EP Pricing

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TestPilot57

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I ordered my 2020 about three weeks ago. Just got a call from the salesman that the truck is on its way but I may want to delay delivery a week or two as FCA is extending EP (Employee Purchase) pricing on the '20s before the end of the month.

Then he said that if I trade my '15 in they will have to reduce the value because "they are selling the new truck for less than invoice"...

What I don't understand is:
  • No matter what, I'm paying the EP price. Therefore if I buy it outright either the dealer is taking a loss ("it's below invoice") or FCA is giving them an allowance/kickback/holdover or whatever you want to call it to make up the difference. My bet is on the latter.
  • Likewise, if I DO trade in why would they knock off the the trade-in value? Only thing I can reconcile is that if new trucks are down X% because of the EPP then used ones would be too. But it seems more like a percentage, not a fixed amount. IOW if the EPP reduces the cost by $2500 on a $50k truck you'd expect the trade-in to be reduced by maybe $1250 on what would have been a $25k truck.

Or am I all wet? Anyone truly in the know?
 

McBroom

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Q: would you get more money on a private sale vs trade in??
I’m not super smart but have a **** load of common sense.
I’m also waiting to do a special order. I’m wanting a “built to serve” special edition military themed truck.


The Blue Mule
 

redman4455

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What's the net effect of the deal? I know they're trying to recoup the price difference, but I would stick to your trade in price.
 
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TestPilot57

TestPilot57

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Not sure. I'm taking my truck in this afternoon to get a price. May end up selling it to my son instead - he wants it but doesn't really want to pay what it's worth (not because he doesn't think it's worth that, just doesn't want to spend the money to "upgrade" his '13 ST).
 

redman4455

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Not sure. I'm taking my truck in this afternoon to get a price. May end up selling it to my son instead - he wants it but doesn't really want to pay what it's worth (not because he doesn't think it's worth that, just doesn't want to spend the money to "upgrade" his '13 ST).
Oh I thought they gave you the price already. I think it's a ******** tactic because it's not like Ram is making the dealer pay for the EP pricing.
 

McBroom

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Not sure. I'm taking my truck in this afternoon to get a price. May end up selling it to my son instead - he wants it but doesn't really want to pay what it's worth (not because he doesn't think it's worth that, just doesn't want to spend the money to "upgrade" his '13 ST).

As a parent of 6. Our kids never pay what it’s worth.
All my kids bring their vehicles to Daddy’s place cause no one on earth can beat my labor rate $0.00/hr and they know it’s done right.


The Blue Mule
 

eithkrp

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I got offers from multiple dealers for about 16% off of invoice on my 2020 if that helps. Without EP.
 
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TestPilot57

TestPilot57

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Bottom line, I am not going to trade in. They were offering me $1500 less than they "normally" would. Not a big deal, but.

Instead I'm going to give the truck to my son and take whatever he can get for his, hopefully $10-12K but whatever. Worth a lot more to me for him to have it than for me to have the $$.
 

eithkrp

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Bottom line, I am not going to trade in. They were offering me $1500 less than they "normally" would. Not a big deal, but.

Instead I'm going to give the truck to my son and take whatever he can get for his, hopefully $10-12K but whatever. Worth a lot more to me for him to have it than for me to have the $$.
Enjoy!
 

KeithP

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Just made a deal for a 2019 Lone Star 1500 2WD Crew Cab. Last 2019 1500 2WD this dealer has. 22% off sticker. No trade. Felt I got a good enough price that I’m having them add spray in bed liner, the LED bed lights (cuz I’ll put a hard tonneau on it and need to be able to see under the cover at night) and splurging with black perforated Katskin leather seat covers too. Total $1,794.00 out of pocket in add ons. spent a long time looking and have to travel 4 hours to pick it up but it’s worth it. At least to me it is.
 

Hammer757

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Then he said that if I trade my '15 in they will have to reduce the value because "they are selling the new truck for less than invoice"...

W

This sounds like total BS to me. I have the EPP program and have used it often. The trade price and the EPP are two separate discussions. The dealerships don't loss money with the true EPP, they just don't make much in profit. Really their profit is ******* in your trade in, plus all the fees and things they tac on. Being that this employee pricing program is a Chrysler promotion event, I would think that means the dealerships are receiving more kickback for the sales. So unlike a true EPP sale, they are making money on these public EPP sales. Sounds like this guy is trying to get one over on you, or doesn't understand the promotion. I always get my trade-in price first, and then drop the EPP on them when using it (plus they have to give you all the other incentives that are active in addition to the EPP). Currently, it doesn't make a lot of since for people that have the true EPP to purchase right now, as we can usually get better deals.

How much are they trying to drop your trade in by? I'm sure you have put some miles on it, but that would be a few hundred dollars off.
 

Floyd1979

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Not sure. I'm taking my truck in this afternoon to get a price. May end up selling it to my son instead - he wants it but doesn't really want to pay what it's worth (not because he doesn't think it's worth that, just doesn't want to spend the money to "upgrade" his '13 ST).
Get the NADA prices, Carmax , KBB
Auction price .
The Employee Pricing is set from FCA . Has nothing to do with your trade .
 

serendib

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I got offers from multiple dealers for about 16% off of invoice on my 2020 if that helps. Without EP.
Hi,

I currently have 2012 2500HD that I bought in Columbus and am ready to find a a deal on a 2020 2500 Diesel. I'm located in the Pensacola FL area. I'd greatly appreciate any recommendations you might provide. I am used to buying out of town/state.

Thank you
 
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TestPilot57

TestPilot57

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Get the NADA prices, Carmax , KBB
Auction price .
The Employee Pricing is set from FCA . Has nothing to do with your trade .

I got trade-in prices from KBB, NADA and Edmunds. They showed a "Clean trade-in" amount right in the same ballpark, at $24,300. He said they would give me $22k.

He did admit that they get "most" of the difference between Invoice and EPP back from FCA.
 

19REBEL

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Q: would you get more money on a private sale vs trade in??
I’m not super smart but have a **** load of common sense.
I’m also waiting to do a special order. I’m wanting a “built to serve” special edition military themed truck.


The Blue Mule

I am not sure how it is in other states (Like Vermont), but here in Arizona you only pay taxes on the difference between your trade in and the price of the new vehicle. Our tax is 10% so if you by a $60k truck with no trade-in you pay $6,000 in taxes, whereas if your trade-in is worth $25k you would only pay taxes on the difference of $35k or $3,500. So you would have to get $3,500 more on a private sale than the dealership is offering on the trade-in to break even.
 

JoeCo

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I am not sure how it is in other states (Like Vermont), but here in Arizona you only pay taxes on the difference between your trade in and the price of the new vehicle. Our tax is 10% so if you by a $60k truck with no trade-in you pay $6,000 in taxes, whereas if your trade-in is worth $25k you would only pay taxes on the difference of $35k or $3,500. So you would have to get $3,500 more on a private sale than the dealership is offering on the trade-in to break even.

Same here in NY, unless you are getting severely low balled by a dealer, it usually makes more sense to trade in to save the money and the hassle. According to a google search, these are the only states that don't offer the trade in sales tax credit:

California
District of Columbia
Hawaii
Kentucky
Michigan
Montana
Virginia
 
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