Was looking at a possible trade today with my '06 2500 CTD auto 4x4 Laramie LOADED. It has a whopping 10,065 miles on it.
I was offered $28,000.
Even the salesman was laughing when he brought it back from the managers office!

 

How much did you buy it for?

 

that sounds about right. i have an 06 i traded an 05 for that had 11,000 miles on. wish i would of got 28,000. it looses 10,000 as soon as its titled. luxury items like boats, campers are even worse. even if another dealer will give you more he just wont discount the new truck as much and vice versa. its all a #s game.

 

Try doing a KBB comparison of a 1996 truck with a gas engine and the diesel, say with about 200k miles. That when the comparison is clear. Buying a Cummins and trading it in a year later really dosen't make much sense.

Everyone knows trading in a one-year old truck, car, motorcycle, etc. is a loosing propisition. Depreciation curves are always much steeper near the intial purchase date, and tend to level out with time.

 

Oh Ive bought plenty of vehicles to know about depreciation, but a sticker of $49,000 and one year later its worth $28k? Wow! Thats just horrible! My Fords didnt even lose value that quick!

 

Sticker and what someone would pay for the truck are pretty different...

 

Yeah, I paid 32k for my 06 in June of 06 and it stickered for 43k

 

I had my local dealer (Sam Leman Dodge, Peoria, IL) at $29.9k for a remaining '06 SLT 4wd club-cab shortbed AT with cloth last fall before I decided that for this season of life, a payment isn't something I want, and I really wanted a G-56 transmission also. Original sticker was $44.5k. So $28k on trade does not sound all that bad to me.

 

you didnt pay sticker did you?


did you ????



Hope not

 

Don't forget that the dealer's offer on trade in is lower as he has to mark that truck back up for his profit when he resells it so you'll lose several thousand of its actual value just for the convenience of having the dealer handle the resale for you.

Trading in a 1 year old vehicle is pretty much the formula to take the biggest possible hit financially. If you figure that the vehicle stickered at 46K most people on here paid something close to 10K off sticker it seems. This already puts it at 36K. Means you lost say 5K for depreciation and another 3K to mark down for dealer's resale on the vehicle to get that 31K from the next guy. 28K doesn't really seem that low when looked at this way, IMO.

Overall, I'm never really surprised by a dealer raping someone on their trade-in. It's pretty much a standard way they can make their money on the 'back-end' of a deal.

But really, trading in after a single year of ownership? Hey all the more power to ya if you can afford it. But you can pretty much assume that you'll pay dearly for trading where the depreciation curve is nearly vertical. Almost any financial planner will tell you that that would be an almost universally unsound financial call.

As to the original post though about Cummins specific residual value- I think the real question is how much less would you have gotten if your truck was NOT a Cummins?

 

Maybe $100?

 

If you don't like, you can just park it in my driveway and sign the title.

 

Oh, its not about me not loving the truck at all. I should have mentioned that from the start. Its more of a financial struggle we are getting into and are looking for ways to save. You know typical stuff, I guess.

 

So you think that trading after one year is going to help you save? Unless you paid cash, not a chance. Stick with it, you'll lose your *** if you get rid of it, I'm speaking from bitter experience. I've done the whole deal of buying a brand new truck, then wanting to save, and getting something else. It ends up costing way more in the end. I have the proof of it.

 

Yeah, I agree with you. It was more of a "see what I can get out of it" than really believeing I could save money. Looks like Ill sell the Mach1 and put the cash on the Cummins and refinance it.