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Buying a Dodge Ram 1500 Truck


Klute's Avatar
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Join Date: Aug 2002
Posts: 225

02-03-04, 03:01 PM   #1  
Buying a Dodge Ram 1500 Truck

I have 2 questions.

I am having a difficult time justifying 4x4. I live near St. Louis and would only need it for snow a couple of times a year. I have owned a Nissan and Mazda pickups in the past and have had no problems in the past. I am told 4x4's hold resale better than 2x4's.

Suggestions/Ideas?

I am looking at 2002 quad cabs. I am finding a Used 4x4 models with 25K miles for about $22K (asking price).

I can get a new 2004 2x4 Quad Cab from a dealer for $24. Actually the sticker is $30,710, rebate of $3250 and discount of $3286 for a price of $24,174.

The question is this. In order to keep the payments where I like them, I will get a 60 month loan on the used truck. If I buy new and finance for 72 months, the payments are almost identical.

Am I better buying a new truck and financing for 72 months or a truck that is a couple of years old and financing for 60 months?

Does this make sense? Would I be in a better position after 6 years with the used or new truck purchase now?

Thanks--

 
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davo's Avatar
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02-06-04, 03:34 PM   #2  
4x4 probably do hold their value better but if you buy a new truck you get the entire factory warranty.A 2002 has already lost 2 years of the warranty.If you intend to trade in the truck you buy now I would go for the new one as age of a vehicle affects the price(trade in value) more than options I think.Just my opinion though.

 
stereoguy's Avatar
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02-17-04, 07:16 PM   #3  
I think those people asking $22k are insane. There is no way a smart buyer would buy that when you can get a new one for $24k.

I'm not sure exactly which trucks you are talking about, but I ran a top of the line, loaded 2002 Nissan Frontier 4WD Crew Cab through www.edmunds.com, and it came back with a fair dealer price of $18k, and a fair private party sale price of $16. These seem like accurate numbers for a truck that is selling for $24k new.

If you are at dealers asking $22k used, it should be easy to talk them down to $18k.

Now run these number through http://mortgages-loans-calculators.c...anced-Loan.asp Let's assume 5% for both loans, even though you can do better, and no money down/no trade in.

$24k for 72 months is $386/month. Your total payout over the life of the loan is $27,800

$18k for 60 months is $339/month. Your total payout over the life of the loan is $20,400

Difference of $7,400

In 6 years the 2004 will probably be worth $1k more than the 2002. Let's add add on another $1k for additional out of warranty repairs on the 2002:

$7,400
- 2,000
------------
$5,400 is the amount you are ahead by buying the used truck at a reasonable price.

Always let the other guy eat the first few years of depreciation on a new car if possible.

 
picklesnouts's Avatar
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02-20-04, 01:09 PM   #4  
Used is the way to go..............

If ya wanna save money. Stereo guy is 100% on the mark...those people are asking waaaaaaaaaaaaay too much for that used truck. What is happening in the used car world is that alllll these rebates and 0% finance deals on new is dropping the residual value on the new car AND lowering value on used stuff. The only way in my books to buy a 2 to 3 year old with about 35K miles on it and let the original owner take the "porking" on the depreciation! Never never EVER take a loan for more than 5 years on a car.......after 5 years it will have over 100K on it and be worth squat! Take your time and shop for a creamer used car! I bought my 98 volvo V70R wagon in 2001 for $20K......the window sticker price from the original owner in 98 was $42k.......for 3 years of use he paid $22K!!!!!!!!!!!!

 
Klute's Avatar
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02-20-04, 01:33 PM   #5  
Here's the deal

I put less than 9K miles on a car per year.

I am planning on a 5 year loan.

I can buy a nicely equiped 2004 Ram 2WD QC for $23,410 after discount and rebates. The original sticker price is $31,355! Now if you count depreciation against the sticker price, yes, then resale and depreciation is terrible!

If you count depreciation against the $23,410, it is not so bad, or am I dreaming?

Now I have been looking at Used 2002 QC 4WD with the same equipment and most are asking between $21K to $23K. Let's say that I can get them to knock off $2K from that price.

After the 5 year loan is up, which vehicle is worth more?

Interest rate for used is 5.1% and New is 4.54%.

 
stereoguy's Avatar
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02-21-04, 02:15 AM   #6  
Right now a 1999 Dodge 1500 2wd is worth a little over $10k

A 1997 Dodge 1500 4wd goes for about $9k

So if the question is which one of your two candidates will be worth more in 5 years, if we assume these ratios stay about the same, the 2004 should be worth a little more.

Based on what Edmunds thinks the 2004 1500s are worth, your price of $23k really doesn't sound that bad. I still think the used market should reflect these lower new car prices, and you should be able to find someone dying to get rid of a 2002 for $14-16k.

 
Klute's Avatar
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02-23-04, 06:31 AM   #7  
Pulled the trigger

OK, here's what I ended up with.

Engine: V8 5.9 Liter
Trans: Automatic
Drive: 4 Wheel Drive
Mileage: 28,000

Equipment
SLT, Air Conditioning,Power Steering,Power Windows,Power Door Locks,Tilt Wheel,Cruise Control,AM/FM Stereo Cassette
Single Compact Disc,Dual Front Air Bags,ABS (4-Wheel),Power Seat,Sliding Rear Window,Running Boards,Towing Pkg,Two-Tone Paint,Alloy Wheels

I think it was a pretty good buy.

Thanks for your help fellas!

 
bwskott's Avatar
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07-10-04, 05:45 PM   #8  
How much did you pay and what year?

Also, what do you guys think of all this Hemi powereds pick-ups from Dodge?
Dodge has a cool station wagon type thing that sure looks cool, but I'm a truck guy myself. I bought a Chevy Cheyanne (sp?) but it c/k 1500 type a'95 from Edison company so I figured it had been well maintained. I got a 4X4 with just over 220K for a little under 4K, it's real strong, it's truely gotten the most abuse since I've owned it (just a couple scrapes here and there.) In the year I've owned it. The guy over at Jiffy lube showed me he had another customer who has 500K on my exact model! I drive this most but have an '82 Supra (I had always wanted one from the first year they came out) I got it for $400.00, moonroof, great stereo, Mag wheels, all the toys via my park manager. She got a new car and sold me it sooo cheap. My wife on the other hand bought a year old Nissan Xterra Supercharged. I did a test drive with one about 4 mo.s and the salesman was so obnoxious I'm not sure if I didn't like the Xterra or just disliked the salesman so strongly it infuenced my opinon of the car. And then my wife and kid went and bought it without my knowledge, I'm glad they got the Supercharged model, it kicks butt although it is the biggest gas hog, we have a police intercepter that we got from the CHP used car lot that is actully faster and uses less gas. If I got a Hemi Dodge truck it would be about the same MPG as the Xterra, 'cause I don't think I could afford another hog.
Thank you for your time.
Sincerely,
Brent Skott


Last edited by bwskott; 07-10-04 at 05:58 PM.
 
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