Dodge Ram Bargain Basement Prices Explained
How can Dodge dealers offer trucks for 50 percent off of sticker price, as several have done in the past month? Money from the mother ship. Right now, Chrysler is offering up to $5k – $6k rebates to customers buying a Ram 1500. At the same time, ChryCo's kicking-in up to an additional $9.5k in "dealer incentives." The extra cash is a desperate move to clear th decks before the new Ram arrives; helping dealers to do what's got to be done to sell their moribund Rams without going out of business (ostensibly). So when you see a $35K Ram for $17.5K, Chrysler's subsidizing the bulk of the difference to the dealer. Great for generating dealership traffic, great for bargain hunters. Not so great for Chrysler's finances or future.
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If they can offer 50% off and still make a profit it just goes to show how they have been screwing Joe Public for years with excessive over charging
Another idiotic short-sighted move! The only motivation is to get rid of these '08s at all cost... Never mind that it's devaluing the Dodge RAM as a brand. Forget that it's knocking another 20% or more off of the already decimated resale value...doubt very many existing RAM owners will be repeat buyers after that kick in the teeth! It will be hilarious if all would-be RAM buyers snatch up a dirt-cheap '08 model and, since truck buyers are definitely a more finite bunch these days, there's no one left to buy the new '09 model! I get goosebumps just thinking about that prospect (and yes, I really need to get a life).
I just happened to be looking at the Automotive News customer & dealer incentives for another reason(http://www.autonews.com/assets/PDF/CA51387725.PDF), just published today. The $9,500 dealer cash is on 2007 leftover Rams, not 2008 models. According to the linked PDF (which I believe works for nonsubscribers also), it's up to $3,000 for 2008 models (plus up to $6,000 in customer rebates), for a total of $9,000 off. A dealer in Albequerque, NM who spoke with Automotive News for their July 7 piece on the half price Rams said this: Zangara says he's not losing money. That's because there's now $9,000 in customer and dealer cash on the Ram. Add $9,000 to the $15,000 he's selling them for and you get $24,000. Where does he make up that $3,000 difference on the $27,000 invoice? "In service and parts and body shop," he says.
I've been looking pretty hard at these deals and all I can find are 2WD 1500 Quad Cabs with the 50% discounts. Be careful believing the ads. They can be very misleading. Go to the dealer to get the truth. Also, you must finance through Dodge which means an interest rate of over 7% and I would bet, a pre-payment penalty. Therefore, they earn a portion of their discount back to the tune of 2-3% per year in finance charges (or prepayment penalty). The deal ain't quite as sweet as it sounds, and is worthless to me since I need 4WD.