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2022 Ram HD Builds and orders - Post and discuss your TRUCK order here! ** NEW USERS READ POST #1 **

Scubaz66 said:
There is no such thing as "ZERO FINANCING". It's called 0% financing to make the buyer think they are getting a good deal. Nobody loans money for free!!! This started back in the late 70's in the furniture business. The Automobile Industry started advertising this gimmick to make sales because it works.

What most consumers don't understand is the price to finance is already built into the cost of the automobile. You may think you are financing at 0% but you have already paid the interest upfront. Yes! You still get 36, 48, 60, 72 months to pay the loan at no additional interest however:

Most people trade in their automobile on an average of 3 years on a new 0% loan for another vehicle.

At this point you are paying the interest upfront once again for the new vehicle while you take a loss on the sale or trade from your used vehicle because you paid a higher price to allow for the built in interests.

This is one of the biggest SCAMS in the automobile industry.
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This is not correct in all cases. If you negotiate a purchase price that is a verified objective good deal (read: well under sticker) and on top you get 0% financing you have been lent money for free. The alternative is to not take the 0% and instead go to the bank and get the same product for higher than 0. Your explanation only works if you roll into the dealership and pay what they are asking, which, has all sorts of padding for them.
 
99mo said:
I think that you are comparing 2 different scenarios in terms of the actual finance. Quick example: If I negotiate a trade for a paid off vehicle at 50,000 and the balance of the loan to purchase the new vehicle is 36,000. The payment for 0% at 36 months is 36,000 and $1000 a month. Now, if you mean the manufacturers build extra costs into the actual making of the vehicle, they probably do. We all pay that set cost.
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Did you purchase the Paid Off vehicle new? If so you paid the finance interest upfront in the cost of the vehicle regardless if you paid MSRP, Dealer Invoice, or any other plan like Friends and Family. These are all gimmicks uses by the manufacturer to generate sales. Therefore you paid the interest up front.

Now! You take good care of your vehicle and decide to trade up to a newer vehicle. The original purchase price of the new vehicle (considering the above mentioned gimmicks) includes this built in interest rate once again.

Therefore you are once again paying the interest upfront! The terms to pay the loan off in your case is 36 months at $1000 per month because you were given a trade in value of $50K however, you have once again paid the interest up front for a $86K vehicle.

We as consumers need vehicles so regardless we pay interests to finance. Nothing is FREE! It's a vicious cycle we as consumers are forced to pay even if we pay cash for a vehicle.
 
2500Ram said:
This is not correct in all cases. If you negotiate a purchase price that is a verified objective good deal (read: well under sticker) and on top you get 0% financing you have been lent money for free. The alternative is to not take the 0% and instead go to the bank and get the same product for higher than 0. Your explanation only works if you roll into the dealership and pay what they are asking, which, has all sorts of padding for them.
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See my answer to 99 mo...
 
Scubaz66 said:
See my answer to 99 mo...
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The problem is that you posit an unfalsifiable position. You're saying there is this unverifiable constant in EVERYTHING. If you can't remove that constant and I can't remove that constant then we call that life. Here's an example of what you propose but using a different constant: there is a level of pollution in all air - if you use your mouth or nose to breath you are intaking pollution. What I have said is also unfalsifiable, difficult to verify, and also called life.
 
2500Ram said:
The problem is that you posit an unfalsifiable position. You're saying there is this unverifiable constant in EVERYTHING. If you can't remove that constant and I can't remove that constant then we call that life. Here's an example of what you propose but using a different constant: there is a level of pollution in all air - if you use your mouth or nose to breath you are intaking pollution. What I have said is also unfalsifiable, difficult to verify, and also called life.
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Agree, after we sign the contract with dealer for negotiated price, if I can get 0% financing, comparing to other higher rate (especially with other similar terms), I would definitely to take 0%, no matter what gimmick built in, as I know this is route will cost me less.
 
Yes, the probabilities of all these scenarios are built into good business models because not all buyers are the same. Some people in getting 0% submit to a higher vehicle price. Some shrewd folks will walk if they don't get invoice and 0%. Others hate to deal and buy a Saturn(!!!). As a retired operations researcher / decision analyst I'm in agreement with 2500Rams general direction of thought. I will add that there is a bell curve of profit margins per sale (winners and losers) while the shape of that distribution anchors the business model decisions(it might not be a normal distribution). It's called 'running a business', not a scam. Scams take your money and do not provide the advertised product as generally perceived!

So for those of us willing to fight for it, we can place ourselves in the left tail of that distribution and be called a 'winner' since we received the same product as those on the right who paid MSRP and financed at 4%.

1% under invoice AND 0%? WINNER.
 

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Finally got an update from my dealer today that my truck is scheduled to start proudction on date of 8/22, I know after that, it may be another long wait time, but it's moved forward.
 
Ktm2smoker said:
Yes, the probabilities of all these scenarios are built into good business models because not all buyers are the same. Some people in getting 0% submit to a higher vehicle price. Some shrewd folks will walk if they don't get invoice and 0%. Others hate to deal and buy a Saturn(!!!). As a retired operations researcher / decision analyst I'm in agreement with 2500Rams general direction of thought. I will add that there is a bell curve of profit margins per sale (winners and losers) while the shape of that distribution anchors the business model decisions(it might not be a normal distribution). It's called 'running a business', not a scam. Scams take your money and do not provide the advertised product as generally perceived!

So for those of us willing to fight for it, we can place ourselves in the left tail of that distribution and be called a 'winner' since we received the same product as those on the right who paid MSRP and financed at 4%.

1% under invoice AND 0%? WINNER.
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I agree with your synopsis regarding using the word "Scam" instead of "Business Model" Regardless!! "NO ONE" will finance a consumer for 36-72 months interest free regardless of what method was utilized to come to a price agreement. I used the word "Scam" not out of context, but as a general identification as to how the "manufacturers" utilize methods to deceive the consumers. I'll use Walmart as an example: They use the "Roll Back Prices" method to make consumers think they are providing a great deal when in fact "They" like most businesses are in business to make a profit.

The reason for my post was not to belittle the auto industry, but to educate the buyers to educate themselves on what obstacles to think about when planning to spend $60-$100K on an automobile. Do your research!! (not directed specifically at you) This Forum is an AWESOME tool for the individual thinking about purchasing a new automobile. Lots of educated people on this site helping others navigate the automobile purchase price from understanding the MSRP, Dealer Invoice, Friends and Family Pricing, Dealer Hold Back and where to purchase to get the best deal and the list goes on.......

This is my last post on this subject because it is my personal opinion regarding the subject and we all have our opinions. I'm not interested in ticking off Brutal H0.
 
I'm with you there, it's like my wife at Kohl's! I tell her everything can't be 20% off when you never see anything at 100%. The sale price is often THE price. Often those are marketing strategies to compete against rival businesses and they work out well with the average consumer. Monopolies like your electric company will never offer these 'inventives', but a cell phone company like Verizon with competition like ATT/Sprint/Cricket are pretty much forced to because of customer perceptions.....another area of a business model!!!

These are actually great topics of discussion as folks wait 6 months for a truck to materialize out of Mexico!
 
matemike said:
Chrysler Capital, through your Ram dealer

0% for 36 months
1.9% for 48
2.9% for 60

Incentives end Aug 1.

I checked with USAA, Navy Federal, TDECU, Wells Fargo, and my home town First National. All in the 4-5% range for 60 months. Nothing better than the incentive with FCA right now.
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I hope they have something similar when my truck arrives.
 
pacnw1963 said:
Don't worry...be happy!

"Wasting away again in Margaritaville
Searching for my lost shaker of salt
Some people claim that there's a woman to blame...
But I know, it's my own damn fault!"

Okay...back to the wait!
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Apparently I have found that buying stuff for your new rig really makes the time go by. Can be big (52 gal tank) or small (flashlight for the console). Can't wait for the weekend when I get to build, bolt and load it all up. A reasonable time for me is going to be September so the weather will be right for spending the weekend in the shop. Going to be a good weekend for sure!!!
 
TRXto3500 said:
I hope they have something similar when my truck arrives.
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USAA may have changed their interests rates over the past 7 months, but I got a loan for 5 years at 1.8% back in January. The FEDS have changed interests rates several times over the coarse of 7 months.
 
Did they remove the wheel to wheel steps from longhorns? Ordered 5/17 and don't see them on my window sticker.
 
TRXto3500 said:
I hope they have something similar when my truck arrives.
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I'm so close to walking away from this order as it is. If there is not a 0% offer when I finally take delivery it will likely be the nail in the coffin. 6+ months of waiting (and counting) for a truck that has been built for 2+ months and has just been sitting in mexico is a whole lot to ask on its own. We literally are counting the days before a likely railroad strike that will bring what little transportation that is happening to a halt.

When I placed this order auto rates were at a 5 year low, they are quickly approaching a 5 year high. I will do without before I pay record high interest rates on top of this absurd wait.
 
Anrkist said:
I'm so close to walking away from this order as it is. If there is not a 0% offer when I finally take delivery it will likely be the nail in the coffin. 6+ months of waiting (and counting) for a truck that has been built for 2+ months and has just been sitting in mexico is a whole lot to ask on its own. We literally are counting the days before a likely railroad strike that will bring what little transportation that is happening to a halt.

When I placed this order auto rates were at a 5 year low, they are quickly approaching a 5 year high. I will do without before I pay record high interest rates on top of this absurd wait.
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I wonder if impending strike is why we're seeing so many fly out the door currently? I'm willing to trade a higher rate if it means my paycheck stops getting diluted by inflation, but right now we're still getting inflation and rates are going up.
 
762fmj said:
I wonder if impending strike is why we're seeing so many fly out the door currently? I'm willing to trade a higher rate if it means my paycheck stops getting diluted by inflation, but right now we're still getting inflation and rates are going up.
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My understanding is that rates are going up in an effort to counter balance inflation?!? None of it makes sense to me, but what do I know, I am just the village idiot ;)
 
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