joshthorsc

I'm really liking the products Ram and Dodge have been putting out lately. If I was in the market for a new truck I'd get a new Power Wagon.

geko29

Profits and losses are measured from what the seller paid for a thing. In accounting (and taxation) this concept is called "basis". If a dealer buys a truck from the manufacturer for $35k and sells it to a customer at $40k, they have made a $5k profit. Whether the MSRP of said truck is $10k or $100k is completely immaterial.

FrankReynoldsCPA

That's not how that works at all.

They just have less of a gain. All that matter is 1) what the actual selling price was and 2) what the retailers COST was in the vehicle.

If you are a dealer, and you sell a truck that you paid $30k for, it doesn't matter what MSRP is. If you sell it for $40k, your profit is $10k. Your MSRP could be $80k or $5k, but your profit is still $10k.

ArmyofOne

Still think I'm wrong on pricing?





And that's a 2500. Step it up to a 3500 dually and I'd bet it adds 10k easy.

bitkahuna

iTrader: (20)

your tax loophole reason is completely wrong as many have said, so yes, wrong on pricing reasoning.

but yeah, that's a boatload for a truck but besides ego factor, only those who have a need to tow a house sized object fairly often and want a lot of creature comforts have any need to buy this type of vehicle. most purchased will be the lower end trims (much less $) of course.

ArmyofOne

yeah, i figured that out, thanks. Guess i dont know much about the car dealer biz.
Doesn't change the fact that the pricing is absurd.

mmarshall

90K for a Ram 2500? Unbelievable. Yes, I have to admit...prices are simply getting out of control, even with hefty discounts at actual deal time.

I recently looked at a new 2019 Ranger Lariat 4X4 that was (roughly) half that amount, and I thought it was overpriced for what you got.

SW17LS

I mean, that's a lot of money but its a lot of truck, and its the super luxury version of the truck most people won't get. There are absolutely people who would buy this truck too.

You're looking at this through the lens of decades ago. You have to adjust this stuff for inflation.

4TehNguyen

iTrader: (1)

probably can get 15k off easily of that price. I couldnt tell from the sticker if it was the 1000 ft# one, i just saw it had the 6.7 cummins

mid size trucks are overpriced when compared to a full size. For instance on the ranger, for less than 10k more you could get a similar F150. You cant get the big discounts on the ranger like you can on the 1/2 tons

SW17LS

You're assuming people buy midsized trucks because they cant afford full sized trucks. That isn't the case actually, they're different market demographics. Not everybody wants a big 1/2 ton truck, I know several people who have midsized trucks and they would never have considered a 1/2 ton truck, they want vehicles that fit in their garages, etc.

mmarshall

15K off of 90K is still 75K....not exactly chump-change. You can get a new base-level Lexus LS for that.

That's what drove the last Ranger out of the American market.....Ford overpriced it in relation to the F-150 (or, at least, customers perceived it that way). Let's hope history doesn't repeat itself.

SW17LS

A vehicle you can't do many, many, many things you can do with that Ram. The very definition of apples and oranges.

No, it was just a shift away from small trucks to bigger trucks. Ford wasn't the only one affected. Like I said, small truck buyers don't necessarily want a big truck. The two can exist with pricing that crosses over.

mmarshall

True, but that was WHY there was a shift to bigger trucks......especially the F-150. Customers perceived that the F-150 was a lot more truck for only a little more money. That wasn't the case, though, with the Toyota Tacoma, which has always had a cult-following no matter what its price. And the 1Gen Colorado/Canyon and its Isuzu rebadge was just plain awful (only the utility companies drive it LOL)...the current one is light-years better.


Yes, that's true in some cases.....some people simply just don't want big bulky truck. But it is also quite true that many others simply saw it as a value question.

Toys4RJill

SW17LS

I don't think it had a lot to do with it at all. The small truck fad just died off, those buyers didnt all go buy bigger trucks, they just stopped buying smaller trucks.

I know several people with midsized trucks and not one of them would have bought a 1/2 ton truck.

Yep, I remember it. I have a good friend who moved to TX and the pickup is the luxury car down there.