03-15-2013, 05:27 AM
Dodge Ram Forum Junior Member
Join Date: Mar 2013
Vehicle: 2013 Ram
Trim Level: SLT
Engine: 2003-2008 345ci (5.7L) Hemi V8 345hp 375lb/ft
Rep Power: 0
In a nut shell:
16.12% under MSRP (trade-in independent)
11.21% under Invoice (trade-in independent)
2.49% APR over 60 months
Trade-in independent pricing is made by prior to truck shopping determining how much your truck is worth and what would be a "fair and reasonable" value for your old vehicle...from the stand point of me the owner as well as the dealer. Use kelly blue book, edmunds, past auction history to help determine this. Dont necessarily look at private party selling for traiding in...look at trade in value. Keep in minthe dealer will have risk. I looked at kbb and edmunds tradein value and took the higher of the two and added an extra $100 because of extras not put in as oem options. This is the VALUE I WANT FOR MY TRADE IN AND I FEEL ITS FAIR PRICE FOR ME AND DEALER. This must be known and set in stone prior to shopping. Dealer will give you much better number then what you deem fair. To make the purchase trade-in independent you need to reduce the amount the dealer would give you on trade-in by his excess...consider the excess "dealer discounts". For example, I was content getting $11, 500 for my trade-in, dealer gave me $14, 050...so that turns into equivalent view point that I'm getting what I want for my trade-in $11, 500 and I've obtained $3050 in "dealer discounts".
Now I also obtained $3750 in advertized manufacturer rebates (current manufacturer rebates/incentives are fixed and can be found on dodge web site, edmunds, etc).
MSRP of base SLT, options, and dest. Chrg: $420120
Invoice of base, options, and dest chrg: $35320
Dealers can push money around among 3 locations to increase their profit...
1) Price of vehicle
2) Trade-in value
Trade-in is the one the dealers like the most because it can be subjective...so if everyone uses edmunds and kbb to normalize out the subjective one then there is only two place money can be pushed around AND it's easier to understand how well one does when purchasing a vehicle. I have been doing this for every vehicle I buy so I'm getting a good understanding how low I can get under invoice for american and foreign.