Any thoughts about shortages and current dealer pricing? I am stuck

[b-real]

Its not just the chip shortage - have you tried to purchase shocks lately? Lots of suppliers are short, add that to the fact that people got a down payment put in their bank account and are bullish about the economy right now, so prices are up because supply is low but demand is high - applies to houses and more as well. If you are going to be buying a vehicle in the next 12+ months you are going to pay a premium over what prices were last year. Why would a dealer give a discount when they know they will sell their truck to someone else 10 mins later without giving them a discount? Wish I had a better outlook, but if you are set on buying a new vehicle right now then you are going to pay close to MSRP. I expect to see manufacturer incentives dry up soon.

 

[farout75]

I am not sure if this is the best subforum to post this, but I am in a tricky situation that has me probably buying (getting screwed on) a 2021 Ram tomorrow. I had a 2001 Ram 1500 then a 2014 Ram 1500 with the '14 ram having the dreaded lifter/cam issue at $78K miles. It is at the dealer now and they found metal in the oil so a rebuilt or new engine is the solution but I don't want to put $10K+ into a seven year old truck. Well, that left me trying to negotiate a broken trade for a new 2021 Ram. Here is where things get difficult. Since my engine is partially torn apart, I have almost no negotiating power. I tried other dealers within an hour of where I live, but most are horrible with communication or the one that has responded said they are not interested in my trade because it is not in running condition for them to assess the other mechanical components. I understand that, but I am back to trying to work a deal with the dealership my truck is at. They have a limited number of Rams on the lot.

So now we introduce this microchip shortage issue that I know is real but I think the dealer is overplaying it. They wanted full MSRP minus factory discounts without any dealer discounts my first try last weekend. The were offering me $5K for my truck which is probably about as much as I would get but I think there should be more wiggle room on their end? Is this microchip shortage as much of an issue as they are making it out to be? The truck I want is "in transit" but they cannot give me a firm date of when it will get here. They do have a 2021 Rebel on their lot which is now my back-up plan.

Any thoughts? I usually research things and do a ton of shopping prior to purchasing a vehicle, but I am pretty much stuck in a crappy spot. My truck is my third vehicle so I don't drive it a ton, but I still need it for towing and hauling stuff. Plus, I cannot just leave my broken truck sitting there for months. I know I am going to get screwed but I want to avoid getting totally screwed!

Check out the Home Work Guy on YouTube. He has the best ways to buy at this time.

 

[Gary Fields]

Have the truck towed out of there and pay for the tear-down. Take it to an independent shop you trust or you friends trust. It may not need an entire new engine. If it does have them source a salvage motor. It's a lot cheaper and will get it back on the road. Once you get it running again you can either keep driving or trade in. Trying to trade a non-running vehicle is a losing proposition. Dealers will inflate the cost of repairs (at full retail) to screw you on the trade in. Then they will repair the truck as cheap as possible. If you think they are putting a new Mopar motor in it just to put it on the used car lot you are mistaken.

 

[HDGoose]

I had a guy offer me $60k for my 2020 RAM 3500 Tradesman CC LB dually because he cannot buy one from a dealer. They do have some $80k trucks on the lot. Even the truck with service beds are $68k.

 

[sandawilliams]

This is what happens when we send our jobs overseas and end up slaves to them.

 

[2015HD]

I ordered 2 new recliners for my living room back in November (made in USA) and I STILL don't have them. The furniture store told me that I was lucky that I ordered when I did, the lead time now on everything is over 1 year. A year of social distancing rules, lock downs, absences due to illness and a rise in consumer spending are all adding up to a perfect storm. Unfortunately I think the current 'inconveniences' are going to morph into something far more unpleasant soon (like runaway inflation and soaring interest rates). I hope my new RAM shows up before the snow flies again and that I can get a plow when it does.

 

[moxieman77]

I believe it all comes down to the dealer and their reputation. I ordered a 2021 Ram 2500, all the options I wanted, no talk about chips, was told it will take 2 months for my order (Mid March.) My order is here already, 1 month early (High School math...took 1 month for a special order truck). I negotiated the same deal I received on my 2019 special order, minus the rebates which are non-existent right now (Nearly $8,000 discount - fair for both parties). If the dealership is playing games, simply try another that is a straight shooter and reasonable. Just my real-world 2 cents, put as much effort into it as you wish to do, but don't feel that you have to bend over and be taken for a ride!!

 

[TestPilot57]

\I ordered a 2021 Ram 2500, all the options I wanted...My order is here already..

May want to update your profile/

 

[Aelwulf]

The chip shortage is certainly real. Saw a bit on CNN about it. Between that, the stay-at-home stuff coming to an end, and everyone getting 'free' government money inventories are are record lows. Add in rental companies dumping large chunks of inventory last year so it's not there to feed the used market this year, and them looking for new cars too, it's going to be a tight market for a while.

I still kick myself for trading in my 2017 2500 two years ago (in my avatar), although it was a necessity at the time. I'll never get close to the price I paid on it. But I'm ordering a 2021 Ram 2500 now (mostly same as the 2017). Assuming the dealer I'm going through doesn't decide to play last-minute games when it comes in (possible, but not counting on it so far with this one) I'll get about $4-5k off MSRP plus whatever incentives are around then (maybe $1k or so). It's also taking about a month longer to get built (currently projected end of May). That's in Cali.

That was after several weeks of talking to dealerships and about an hour of back & forth on the lot. But that was also just as the chip shortage was starting to hit and before the inventory shortage was hitting as hard. If you can get a 2500 for MSRP plus whatever incentives you might be doing well right now. Personally, I don't pay MSRP and it's not a requirement for us to get one, but it could be acceptable in your situation even if not preferred.

Edit: Disregard the purchase advice, congrats on the Rebel! Looks good.

 

[oilslick]

Where are you located? I was just looking last night for kicks. Tiny Domiano in Archbald PA has a bunch of Rams. I bought mine from their dealership in NY, they have a bunch of dealerships in PA and NY. Whatever you do, good luck.

Don't believe "Uncle Tony" Domiano's website. I drive by their Archbald Pa. lot almost every day and they don't have much of anything. Only a small fraction of what they used to have. The dealerships are keeping the sold vehicles on their website to look good. You can pretty much guarantee that if you call them to inquire on most of their Rams, they will tell you that it has been sold. Domiano is mostly a wholesale CDJR dealership. Although they do/will sell retail, most smart locals stay away from them. FYI.

 

[JayLeonard]

Have the truck towed out of there and pay for the tear-down. Take it to an independent shop you trust or you friends trust. It may not need an entire new engine. If it does have them source a salvage motor. It's a lot cheaper and will get it back on the road. Once you get it running again you can either keep driving or trade in. Trying to trade a non-running vehicle is a losing proposition. Dealers will inflate the cost of repairs (at full retail) to screw you on the trade in. Then they will repair the truck as cheap as possible. If you think they are putting a new Mopar motor in it just to put it on the used car lot you are mistaken.

This.
My son has an automotive shop in Ct and he does a fair number of salvage engine swaps. He has even gone the literal extra mile and sent someone (me) to drive 4 hours with his flat bed trailer and pick up a customer's car that had a blown engine!
If you have AAA or similar that should cover the tow charge.

 

[tron67j]

Don't believe "Uncle Tony" Domiano's website. I drive by their Archbald Pa. lot almost every day and they don't have much of anything. Only a small fraction of what they used to have. The dealerships are keeping the sold vehicles on their website to look good. You can pretty much guarantee that if you call them to inquire on most of their Rams, they will tell you that it has been sold. Domiano is mostly a wholesale CDJR dealership. Although they do/will sell retail, most smart locals stay away from them. FYI.

I don't know much about them, I only dealt with them as they supplied the truck I bought in upstate NY. Seems the shortage will be around for awhile.

 

[sandawilliams]

I don't know much about them, I only dealt with them as they supplied the truck I bought in upstate NY. Seems the shortage will be around for awhile.

Right now if the truck is priced right they are gone within hours. Just like real estate. You snooze you lose.

 

[turkeybird56]

Chip Shortage: I am in the process of Having a New Electrical Panel put in House. Electrician, who works for an Electrical Supply Company said straight out: He can get a new box but even getting the correct circuit breakers is a heck of a challenge.

 

[tron67j]

Chip Shortage: I am in the process of Having a New Electrical Panel put in House. Electrician, who works for an Electrical Supply Company said straight out: He can get a new box but even getting the correct circuit breakers is a heck of a challenge.

Last year when my washer motor went I searched for weeks until I found one. The issue of supply problems from overseas had already started, now it will continue for probably months, hope not a year but looking bad based on supplier forecasts for things I or my friends follow. Just a thought, as I used to own my own business: Inventory and sales force cost money. If one could keep less inventory on hand and still make same profit by selling less inventory with less mark downs (i.e. near MSRP selling price), would that industry be looking at how to perpetuate the current situation and keep profits high and incentives low? Will be interested to see how things look in a year or so.

 

[oilslick]

Right now if the truck is priced right they are gone within hours. Just like real estate. You snooze you lose.

They don't even have to be priced right. Check out this recent article I found....

https://www.reuters.com/business/au...ip-shortage-lifts-vehicle-profits-2021-04-26/


Sad.

 

[sandawilliams]

They don't even have to be priced right. Check out this recent article I found....

https://www.reuters.com/business/au...ip-shortage-lifts-vehicle-profits-2021-04-26/


Sad.

It is sad for us buyers. When I said priced right I meant for these times.

 

[mikeru]

The chip shortage is certainly real. Saw a bit on CNN about it.

Hahaha...You must be about the only one left who still watches or trusts what CNN reports. I'm not saying the chip shortage isn't real. I deal with the effects of it everyday in my job. But to say you believe it's real because CNN reported on it is funny to me. The chip shortage has been going on for months now. When did you see that CNN report?

 

[lfunk11]

They don't even have to be priced right. Check out this recent article I found....

https://www.reuters.com/business/au...ip-shortage-lifts-vehicle-profits-2021-04-26/


Sad.

That makes me feel a little better. Maybe I didn't get screwed as bad as I thought.

 

[TestPilot57]

Hahaha...You must be about the only one left who still watches or trusts what CNN reports. I'm not saying the chip shortage isn't real. I deal with the effects of it everyday in my job. But to say you believe it's real because CNN reported on it is funny to me. The chip shortage has been going on for months now. When did you see that CNN report?

Very edifying. Thank you for your unbiased response.