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Discussion Starter · #1 · (Edited)
Howdy all,
I am considering a new Ram, priced a couple yesterday, under $26K before taxes for a quad cab, 4x4, Hemi, Expresss truck with ST popular equip. group, and hitch. I will add trailer brake to get EVIC, TPMS, and additional gauges.

How are re-sale values? Ex. I don't want to spend $20K on a used one with 40K miles when a new one is $26K. Is it worth looking into a 2009, 2010 at these relative low new prices? Correct me if I am wrong. Dealer is offering $500 below invoice and about $4,500 in rebates.

A little background.. I have never purchased a new vehicle, my current DD is a 1999 Jeep Cherokee with 160K miles. Ram would replace this getting same fuel mileage and do more.

EDIT:
Here is an example... 17K mile truck, asking price $23.498 for a three year old truck, when a new one can be had for only a few thousand more, will something like this actually sell for as much as they are asking?
http://www.blueknobauto.com/VehicleDetails/used-2009-Dodge-Ram_1500-ST-Duncansville-PA/1707714413

Thanks,
John
 

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For reference, maybe this will help you out at all:

Bought my 2010 Ram 2wd 4.7L quad cab with 38,000 miles and 100,000 mile powertrain warranty for $19,500.00 when it was 9 months old. I looked up the value of it a few weeks ago and I think it was worth like $21,000.00 and has almost 60,000 miles.

I'd buy used personally, but under $25k for a nice express (especially qc and 4x4) is a great deal. My brother I think paid almost $24k for his single cab 2wd express new (it has every option though basically...).
 

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Any finicial expert will tell you to buy used..let the first person in line take the hit.. that being said I usually always buy new.. first off I buy what I want and I am willing to pay the money to do that. Second if you keep the truck for at least 10 years then new is almost the same as used in the end as long as you don't have to finiance for 72 months.. the deal right now is the interest rate.. if your credit is good you should be able to get 2.9 to 3.6 almost free money.. I say go buy that new truck and enjoy it
 

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Yeah, interest rates are a killer. If you finance a used truck usually the interest rate is much higher than the rates on a new one. If the new truck is only a few thousand more, definitely consider the new one. I would find out the TOTAL cost of each truck. Also consider things like tires, if the tires on the used truck are half worn out, you will need to replace them sooner, making your costs higher. Little thing like that can add up. Definitely consider all your options.

FYI. When I bought my 2010 sport, there was an identical '09 Ram with 30,000km. After all the discounts and interest rates were added up, the used one was only a couple hundred less than the new one!!! No wonder the dealer was sheepish on telling me the price on the used one!!!
 

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Discussion Starter · #5 ·
Any finicial expert will tell you to buy used..let the first person in line take the hit..
True. My question is specifically about the Ram comparing incentives available now to buy a new one vs. how well they hold their value. Check out the link I added in the first post (edited, truck has 17K miles, but three years old), if this asking price is near what it would sell for new may not be a bad idea, I would rather spend a few thousand more for new.

Yeah, interest rates are a killer.
I plan on paying it off fairly quickly, but yes used car rates are higher than new in the majority of cases.

FYI. When I bought my 2010 sport, there was an identical '09 Ram with 30,000km. After all the discounts and interest rates were added up, the used one was only a couple hundred less than the new one!!! No wonder the dealer was sheepish on telling me the price on the used one!!!
This is exactly what I'm asking. :smileup: Are discounts better than usual now? Did a 2-3 year old truck cost the buyer more money new compared to a new one today?
 

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here is my take, it is always cheaper to buy used, but if you search forums for all brands, you find enough problem trucks taken bak by the dealer or given "sweet deals" on a trade. those trucks end up on the used car section for resale. i buy new and keep a minimum of 7 to 8 years.
 

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I think if you are going to keep it for a number of years its worth it to buy new, 5000 grand less over 5 years is less than 100 bucks per month... plus you get exactly what you want and you know what has been done to the truck. Also if you buy a 3 year old truck and drive it for anumber of years its that much older when you go to sell, mind you I have never owned a new truck, a couple of sleds though, my next truck will be ordered from the dealer the way I want it and driven probably the length of the financing or more
 

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i have also heard the resale/trade in prices have taken a big hit, i couldn't find one with enough of a price difference to make it worthwhile. see for yourself and price it out.
 

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In some states (Ohio) there's a major difference in how sales tax is calculated. On a new vehicle you pay tax on the difference between the new vehicle and your trade in. On a used vehicle you pay tax on the entire price, regardless of what/if you trade. That could be substantial depending what you're trading... like $15,000 * 6.5% = $975
 

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Like Sean (srusnak) I bought my truck when it was only a little under a year old. I paid $21,000 (including TTL) for my SLT 4x4 Q/C. New ones at the time were in the mid-upper 30's. Significant savings. Mine is better equipped than an ST, so I got a better truck for the same/less money by going used.

Just have to decide what features you want/can live without and go from there. For me, In order to get the features I wanted and keep it close to the 20k mark, I had to go used. Could I have gotten one with less miles? Certainly. Mine had 42,000 on it when I bought it. It was purchased by a used car lot and had their vinyls put on it. It had everything I wanted except a sunroof and a Hemi, which neither were a deal breaker. The used car lot that owned it gave me $15,000 for my 06 Civic, I wrote them a check for $6,000 and drove away in a MUCH nicer vehicle, said used car lot also used their connections to get me the Chrysler MAXCARE Liftetime warranty.
 

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I think this is a very user-specific sort of question that can't really be answered in a forum like this. But just some ramblings on my part....LOL

I used to think that used (1 year old) was the way to go.

I bought my 92 Dakota back in 93 , a year old and 20k miles. Had some transfer case issues, but luckily it was covered by an extended warranty I bought at the time.

I bought my 2003 Durango in late 2003 with 20k on her. I also bought Mopar's extended warranty and it covered some electrical stuff but didnt have any major issues till it ran out.....:LOL:

However, I just dumped the Durango with only 80k miles on her because of tranny issues, rust issues starting, A/C issues, front suspension issues, etc. I didnt want to dump tons of cash into a 10 year old truck. What the tranny would have needed works out to be almost a YEARS worth of payments on my new truck.

Looking back on the Durango, had I bought new I would have only 60k on her and have another 3 years or so of use before the major stuff like tranny started (hindsight is 20/20). Of course I would have spent $10k more too at the time.....

Buying a LOW MILEAGE 1 year old might be the way to go , with low mileage being 12k miles. You save that immediate depreciation.

However, when I bought my 12 Ram a couple weeks ago, they had 2 2011 Rams on the lot...both had around 20k.....had the 47 engines (not the hemi like I wanted) and didnt have many extras...they wanted $24k or so each........My Ram's MSRP was $40k but with rebates the price was $34k......Yeah, $10k more, but I have a lot more stuff on my new truck than the used ones had, I have the security of an extra year/miles on the full warranty, and the peace of mind knowing that I am starting out with a factory fresh rig, complete with the new car smell.

Something to be said for the peace of mind that comes with a brand new vehicle versus a used one, especially when today's vehicles are so electronic-heavy.

Not to mention that the interest rates for a used vehicle are higher.....

Do the math and see what deal gets you the most for the payment.....

In my case I went for a 3 year lease at about half of what the payment WOULD have been buying the truck outright.....I have the option of walking away scott free after 3 years if I hate it, or doing a buyout with the pre-determined buyout price, which is about what the 2-3 year old trucks seem to be running right now, if I love it and the math makes sense at that point..... I will know the owner and it will be low miles....about 24k for me, after 3 years. I did the math and I actually save some money net comparing buying now versus leasing then buying out......yes, it spreads the payments out over more years.....but it allows me to drive a brand new luxurious truck for less than what I would pay on an economy compact car.

Letting someone else "take the hit" is great and all, but you are still buying a used vehicle whether it is a year old or 5 years old.....

(I was NEVER one to even consider a lease til I saw the deal they put in front of me....basically no interest, no turn in fee, a generous damage allowance and a low payment. In my situation it is a perfect fit!)
 

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I hear ya Shadango. I did the same on my last truck. (However, it was an '04 Ford) 0% interest to lease for 3 years vs. 5 or 6 to buy (approx. $3,000 savings) made sense at the time. Then when the lease is up, you get a new one or pay off the balance. It made sense for me at the time and made the new truck affordable. However, after the 3 year lease, to keep the same payment rate, I paid off the balance in 4 years, making my loan period 7 years, too long in my opinion. I was starting to fix the truck while still paying for it.

Leasing isn't for everyone though. You have to be someone who is quite meticulous when it come to maintenance and you do have to watch the milage. Mods are also frowned upon.

For my first truck, leasing worked. It allowed me to have a better truck that gave me a higher trade-in value when it came time for the Ram. However, I don't think I would lease again, if I can't pay for it in 5 years, then I can't afford it....just my opinion.
 

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JMO but I'll buy a good used vehicle for a good price, pay it off in a couple years, and won't make a car payment for another 15-20 years...

I bought used and got a good interest rate too, so that really more depends on credit I think. My dealer bought the interest rate down to make the sale.
 

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I was gonna say, I was offered 4% on my Ram when I bought it. I declined and said I wanted to pay cash. It really depends on your credit. I am still with Sean. I plan to have my truck long enough to enjoy at least 10 years of driving. If I would have bought new, I wouldn't have been able to pay cash. Could I afford a $700 a month payment on a new Laramie? Yes, I absolutely can. Whether I want to or not is an entirely different matter. At the time of my purchase, I could either drop 6 grand cash and walk away with a decently equipped Ram (due to trade in equity), or I could go buy a brand new, base model ST with NOTHING extra, and walk away with a payment. The choice was clear as day to me.
 

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JMO but I'll buy a good used vehicle for a good price, pay it off in a couple years, and won't make a car payment for another 15-20 years...
LOL

"find a good vehicle and drive the wheels off it for years".

That was my plan with my ford exploder.....but things started failing and stuff is expensive. I was still paying on the pig, owning a few grand yet, and invested another $6,000 in repairs in a 4 year period. And I still had rust issues and an old vehicle.

When the A/C went out, requiring a $1,000 repair, I said enough is enough. I was basically getting to the point of paying a new car payment every month and still driving an old vehicle with issues.

I was upside down in the damn thing, but glad to be rid of it.

I saw my Durango (recently) taking me down the same old path and cut bait before it got out of hand.

Sometimes it is much easier to make a known car payment than deal with the surprise costs of keeping an older vehicle on the road.

I guess it depends on your outlook and situation at a given moment.

10 years of driving a car or truck at a low mileage per year is one thing, a whole different thing if driven average miles, and then still another if high mileage.

I know my outloook and situation has changed a few times since I was in my 20s.... LOL I am too dam old and tired to be crawling around under my daily driver just to keep it legal and running reliably. I would rather spend my free time (that which I have) with my kids or playing with my other toys....And too expensive to have shops do all the work.

Right now, I am almost to the point where I just want to have a new, reliable ride every few years and not worry about when stuff breaks paying out of pocket.

The nice thing is, with the way this lease is set up, I can change my mind in 3 years and keep the Ol' Horny or walk away and get into something else...maybe a new chally! LOL
 

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Yeah I don't have kids lol.

Sounds like you had a bad vehicle though. My last vehicle was a 1997 s10 that was in my family since 1998, and I sold it right before buying my ram in 2011 and I didn't want to. I rarely had an issue with that truck. I sold it because we needed a bigger vehicle since I now have a wife and dogs, the single cab mini truck wasn't cutting it. I sold it to my boss and it's still running great another year later :)

I hope this truck does as well, seems like it so far. 60,000 miles and only a few minor issues. I also have a 100,000 mile power train warranty.
 

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Well, re: "bad vehicle"...I dunno. Could be. It was a 94 Exploder.

I actually liked that truck for what it was.

But the Durango I just dumped I LOVED. But at 9.5 years old it had only 80k on her.....but rust was starting its cancerous creep everywhere...the AC was busted, the front end was going to need work again, the brake lines were all rusty and would be needing replaced, and then the tranny started making a death noise.

It was just too much all at once.

I really PLANNED on holding onto the D for another 3 years or so.....but looking at all that cahs out of pocket and still having a 10 year old, rusty truck, I cut bait.

10 years ago I may have hung on to it a while...

But I am LOVING the new Ram.

I have never owned a completely brand new car or truck, where someone else's butt hasn't broken in the seat. My wife got the first two new cars we bought. I wanted her in the most reliable vehicle. Less worry.

But you only go around once. I figured if I am going to spend big bucks, might as well do it right and go new this time and see how it pans out.

Talk to me in 5 years or so though when the kids are ready for college...I will probably have to sell everything and hitch hike to work...LOL
 

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seems like the debate is pretty personal, lots of good points for both new and used
 

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I buy new. I usually keep my vehicles about 5-8 years, put about 100k miles on them and then I get the itch to make a trade. I'd say if you plan on keeping your vehicle for any length of time then buy new. If you want to change your vehicle every 2 or 3 years then buy used.
 

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new or used

Every used vehicle I've ever bought has needed something fixed soon after I got it. In the past I've stubbornly held on to used cars, accumulating repairs, and in the end wound up paying about what I could have gotten a new one for. When one considers the many new vehicle special discounts being offered now, a full warranty, and usually low financing options vs. the often overpriced used vehicles, it's become clear to me that new is the only way to go.
 
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