Truck Shortage = Profit

Disclaimer: Links on this page pointing to Amazon, eBay and other sites may include affiliate code. If you click them and make a purchase, we may earn a small commission.

goodcat

Junior Member
Joined
Feb 22, 2016
Posts
21
Reaction score
61
Location
CA
Ram Year
2018
Engine
5.7
51D8FA54-608D-4C7B-B15D-AB5B6D8D546C.jpeg


Many may be aware of this, though I was not until it happened. My truck (18 Ram Rebel with 28.5k miles) lease was up this upcoming May 5th. The calls from Chrysler had been coming in steady asking “what my intentions where”, keep, return, lease something new. I was getting a few calls a week and it was honestly a little annoying. Since Covid and working from home I’ve found the need for a full-size truck had dropped to almost zero. I was considering a few different replacements when I dropped my truck off. That’s when during one of the multiple calls I inquired about the pay off residual. It was only $27k. The market for my truck in Southern California was $48-$50k (which is crazy). Said market was muuuuuch lower when I leased the truck 3 years ago, hence the low residual. Long story short, I planned to just go out of pocket and buy the truck out, and attempt to sell it myself. I filled out that KBB what’s my car worth online thing. Within 30 minutes I had multiple emails, calls and texts from dealers wanting to buy my truck. Within an hour I had set up a drop off with a local Mercedes Benz dealer of all places, as they had offered $43k for the truck. No payoff needed. They’d handle that. So I drove over. Dropped the truck off, signed a few forms. They now send a check for $27k to Chrysler, when Chrysler gets that in a few days, MB overnights my profit check of $16k to me.
So in one day I went from planning on dropping off my truck and being out of pocket a few grand for a new vehicle to actually making $16 grand. Within the following 48 hours I had 5 more calls from dealers. 1 offering $41k, 3 offering $43k, and 1 offering $44k. Even Carmax chimed in with $42.5k.
Do your research fellas. This little flip beats the hell out of any stimulus check.
 
Last edited:

csuder99

Senior Member
Joined
May 28, 2014
Posts
557
Reaction score
428
Ram Year
2013
Engine
Hemi 5.7
Around here (PNW) dealers list 3 year old trucks for more than sticker was, nevermind nobody paid sticker to begin with.... o_O
 

Barney556180

Don't need no stinkin' mask...
Joined
May 14, 2018
Posts
302
Reaction score
270
Location
Northern Michigan
Ram Year
2014
Engine
3.0 EcoDiesel
As much as they try, the economic law of supply and demand stands firm.

I sold my 2019 1500 Laramie last Aug six months before EOL to Carvana. After residual payoff I pocketed almost $9k, and avoided the state tax that would have been due had I bought it myself to sell.

On a side note: There’s a lot of bragging when paying less than MSRP, but then when stocks are tight, or on a new in-demand offering, the howling over paying more than MSRP is amusing.
 

Wahrsuul

Senior Member
Military
Joined
Nov 16, 2011
Posts
2,643
Reaction score
8,068
Location
Central S.C.
Ram Year
2009
Engine
Hemi 5.7
Hm, must be location driven - the local Ram dealer here shows 65 1500s and over 100 1500 classics, and that's the new trucks. Admittedly, I've seen some used ones that are listed for almost as much as a new one, but the new ones seem to be decently priced.
 

JF19Longhorn

Senior Member
Joined
Dec 31, 2019
Posts
199
Reaction score
218
Location
South Jersey
Ram Year
2019
Engine
5.7 ETorque
..and around here (South Jersey / Delaware) they barely will offer me mid 40's for a Longhorn with 22k miles on her.
 

Burla

Senior Member
Military
Joined
Apr 28, 2012
Posts
23,114
Reaction score
44,459
Ram Year
2010 Hemi Reg Cab 4x4
Engine
Hemi
Hot market here as well, local super store usually lines of trucks is down to 13 1500's and 14 2500's. I bet there is a lot of dealer trading keeping them eve this full. Now, there is no shortage of cars, it is just trucks. Discounts aren't even close to what they usually are.
 

Mbrigh3

IG: Stormtrooper_5.7
Joined
Aug 27, 2016
Posts
1,138
Reaction score
639
Location
MD
Ram Year
2021
Engine
Hemi 5.7
My 2014 has 48000 miles on her. I paid 30500 5 years ago. Carvana offered me 28700. Weird part is they increased the value of my ram when I checked the lift and oversized tires box.

My problem is any truck that I would upgrade to is like 55k lol
 

MRFREEZE57

Senior Member
Joined
Nov 18, 2019
Posts
466
Reaction score
627
Location
pacific northwest
Ram Year
2016
Engine
5.7 hemi
just looked on KBB for the value of my 2016 Bighorn, with the mileage and condition says $34,000 for the condition and mileage of my truck, 4 grand more than what I paid for it out the door. sure glad I bought it in late 2019 instead of waiting.
 

HDGoose

Senior Member
Military
Joined
Mar 17, 2016
Posts
516
Reaction score
478
Ram Year
2020
Engine
L6 Diesel HO
I have had business owners offer me $60k for my 2020 RAM 3500 Dually diesel. They will not buy the Laramie or limited that are on a couple of lots.
 

Treburkulosis

Your High End Detailer
TOTM Winner
Joined
Mar 21, 2016
Posts
6,110
Reaction score
8,477
Location
Haslet, TX
Ram Year
2012 Lonestar Edition converted over to a Sport
Engine
5.7 Hemi
I drove past the Ford and Chevy lots yesterday and they had nothing. It was weird. I know my Dodge dealership only shows 6-8 vehicles of each kind on the lot. Congrats on the big profit!
 

Burla

Senior Member
Military
Joined
Apr 28, 2012
Posts
23,114
Reaction score
44,459
Ram Year
2010 Hemi Reg Cab 4x4
Engine
Hemi
My truck is 11 years old and I can sell it 5k less then I bought it for. I still aint selling it, eventhough technically I should considering the current situation. I can probably double my profit on my ar, nope aint selling that neither.
 

Bufordt

Junior Member
Joined
Apr 11, 2021
Posts
2
Reaction score
2
Location
ky
Ram Year
2019
Engine
5.7
Silicon shortage. There are only a few semiconductor facilities that produce chips on the the 5nm or 7nm node that vehicles require for their control modules. TSMC being the biggest. Its only getting worse. Apple, AMD, Nvidia, and others are all competing the the limited fab space. A few automotive assembly plants have been shut down due to lack of supply of chips needed for those modules.
 

1stindoor

Senior Member
Military
Joined
May 1, 2019
Posts
250
Reaction score
284
Location
NC
Ram Year
'23 2500 MegaCab
Engine
6.4 Hemi
So I've been actively looking. KBB values my truck's (2018 2500 Laramie, Mega 6.4 Hemi) trade in between $51 and $53K. I owe about $27k on it (purchase not a lease). The problem is that I cannot find another gas Mega cab that's close to what I have. I would trade it today (zero problems, love the truck) if I could find it's 2-3 year newer version. I suspect I'll just keep it and play the trade in game with the wife's Jeep Grand Cherokee which is a lease.
 

joeygster

Senior Member
Joined
Sep 21, 2015
Posts
1,834
Reaction score
1,219
Location
Ancaster, Ontario
Ram Year
2016 Ram 1500 Sport Crew Bright White
Engine
Hemi 5.7
I thought that the opposite would have been the case with Ram still churning out the 4th Gens as the Classic.

I figured it would completely kill the value of the 4th Gens.

Now my thinking was pre-Covid so it didn't factor Covid into my thought process....and it obviously has a massive impact.
 

Dr. Righteous

Senior Member
Joined
May 13, 2016
Posts
432
Reaction score
467
Location
Jamestown TN
Ram Year
2014
Engine
5.7 hemi
Was reading an article recently that thousands of new trucks are sitting in storage lots waiting for electronics parts to be install so they can be sent to dealers. Covid shut down a lot of manufacturing overseas and they just can't get the parts.
 

EdGs

Senior Member
Joined
Nov 29, 2020
Posts
2,478
Reaction score
3,556
Location
FL
Ram Year
2015
Engine
Hemi 5.7L
2015 Ram 1500 SLT QC 5.7L 2WD, 117k miles

Just checked KBB, and mine is 16K - 20K trade in.

Tempting, for sure.
 
Top