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I was randomly looking around at what people actually paid for Ram quadcabs with the eco Diesel engine. It seems a lot of people were getting $8-10k off MSRP so a $52k truck with all sorts of add-ons might actually cost $42k after negotiating and rebates.
A basic Honda CRV for example might go for something like $28k so that’s a difference of $14k.
I’ve noticed over the last few years that the used truck market is pretty hot. For example, my neighbor sold a 2005 or so Tacoma with ~140k for about $8k. Someone else I know bought a 2007 or so Ram with leather, chrome wheels and HEMI for $12k...it had nearly 200k miles.
So let’s say the truck driver drives the Ram for 10 years and it has 150k miles. I would think a truck like that (especially a diesel) would sell for $12k or so. The CRV with 150k may go for $7k.
Thus, the CRV’s net cost savings is about $9k. Of course, that is a good bit of money for a lot of people.
However, the person buying the Ram basically has all the functionality and ammenities of the CRV with access to the capabilities of a truck...for 10 years. That has value if you actually use it.
Anyway, I just happened to casually look this morning. Maybe my numbers are way off, but it doesn’t seem like the person driving a “big” truck is actually paying THAT much more compared to people driving something like a midsize CUV/SUV. Looking at it on a per year basis - the truck may cost something like $1000 more per year or $83/month.
ra·tion·al·ize
/ˈraSHənlˌīz,ˈraSHnəˌlīz/ verb
1. attempt to explain or justify (one's own or another's behavior or attitude) with logical, plausible reasons, even if these are not true or appropriate.
Also, you have half the CR-V mpg. 5th of CR-V reliability. If not less. RAM will drain you in ten years with all kinds of repairs.
I have a completely different - bow to Quietude - rationale behind buying a truck. As crappy as roads are around here, Seattle metro, it crossed my mind that I might actually be better off using my 05 RAM as commuter, as it's MADE for those roads. It does not care. Instead of killing my NX suspension. Surely, 13.5 mpg vs 29.5 mpg makes difference but that's also regular vs premium gas. And it's $5200 truck vs $30 000 SUV. I feel sorry for my NX on all the potholes and bumps. Truck - just keep pouring gas in.
Btw, ask why they have such huge sales on those diesel engines. Cuz they had major problems with that Italian diesel.
Used trucks hold their resale value based on utility and the fact that newer models do not dramatically outperform older models (same is true with niche cars and convertibles). New trucks appear expensive but if you can score a combination of rebates and discounts, sometimes you're not paying too much of a premium for a new vehicle (ie. Tacomas, F150, & Silverado).
However you're not factoring in the added fuel cost, insurance, maintenance, and...repairs. Trucks get used a lot more and thus you will have more repairs on a truck than a passenger car. I'm on my 2nd set of dampers (very cheap and easy to install), 3rd set of tie-rod ends, 2nd set of suspension bushings, 2nd pitman arm, 4th transmission flush, 3rd transfer case flush, and 6th set of tires. Fortunately for me I have 200K miles without any problems under the hood other than a glow plug intermittent signal fault from cylinder #7. Still the cost of ownership is much higher than our 2013 Fiat 500e, 2007 Lexus Rx400h, and 2001 VW Golf TDI...combined.
I just bought a 2013 Tundra SR5 double cab 5.7 with 78k miles for $19k. No reason I can’t get another 15 years and 200k miles out of it. Not a bad deal if you ask me, but not sure I’d pay that for a domestic.
I was randomly looking around at what people actually paid for Ram quadcabs with the eco Diesel engine. It seems a lot of people were getting $8-10k off MSRP so a $52k truck with all sorts of add-ons might actually cost $42k after negotiating and rebates.
A basic Honda CRV for example might go for something like $28k so that’s a difference of $14k.
I’ve noticed over the last few years that the used truck market is pretty hot. For example, my neighbor sold a 2005 or so Tacoma with ~140k for about $8k. Someone else I know bought a 2007 or so Ram with leather, chrome wheels and HEMI for $12k...it had nearly 200k miles.
So let’s say the truck driver drives the Ram for 10 years and it has 150k miles. I would think a truck like that (especially a diesel) would sell for $12k or so. The CRV with 150k may go for $7k.
Thus, the CRV’s net cost savings is about $9k. Of course, that is a good bit of money for a lot of people.
However, the person buying the Ram basically has all the functionality and ammenities of the CRV with access to the capabilities of a truck...for 10 years. That has value if you actually use it.
Anyway, I just happened to casually look this morning. Maybe my numbers are way off, but it doesn’t seem like the person driving a “big” truck is actually paying THAT much more compared to people driving something like a midsize CUV/SUV. Looking at it on a per year basis - the truck may cost something like $1000 more per year or $83/month.
You’re comparing two vehicles that are dimensionally functionally and purposefully opposite. People who need trucks don’t buy CRVS
Unless you have that 9k you are talking about in rebates and other mumbo jumbo actually saved in a account you’re not saving anything but a intangible number. I can sell something mark it up and give the buyer a rebate. He’s happy he got a “rebate” I’m happy I got the actual price of the car I wanted.
Anything can be discounted or made to add up to look like a deal.
Btw the new diesels have a ton of issues from injectors to turbos. I wouldn’t buy a new diesel today.
If a 'CR-V' and the occasional truck rental/hire serves your needs most of the time that's what would make the most financial sense. If you're even considering the compact SUV that is most likely your scenario.
I doubt these get cross shopped often, but I ran them thru the KBB True Cost to Own site anyway. A CRV EX-L's true cost to own over 5 years is $40,566, with $17,198 in depreciation. A Ram Laramie Quad Cab has a true cost to own of $57,480, with $21,890 being depreciation. (I know, not the Diesel Ram, just trying a couple things out without building specific trucks)
So the Ram will cost a staggering $17,000 more than the CR-V over just the first five years, with the gulf widening from then on (it won't suddenly be efficient). That is closing in on nearly $300 more a month in ownership costs.
Sure, if you need the truck you need the truck and the Ram will do great, but it is no "bargain CR-V with a lot more load capacity" by any stretch.
Last edited by Checkered24; 10-31-2018 at 01:26 PM..
Check out a "true cost to own" calculator on a site like Edmunds or KBB. You may be surprised. A CR-V and Ram QuadCab Diesel are both about the same cost over five years, including fuel and depreciation.
Also, you have half the CR-V mpg. 5th of CR-V reliability. If not less. RAM will drain you in ten years with all kinds of repairs.
I have a completely different - bow to Quietude - rationale behind buying a truck. As crappy as roads are around here, Seattle metro, it crossed my mind that I might actually be better off using my 05 RAM as commuter, as it's MADE for those roads. It does not care. Instead of killing my NX suspension. Surely, 13.5 mpg vs 29.5 mpg makes difference but that's also regular vs premium gas. And it's $5200 truck vs $30 000 SUV. I feel sorry for my NX on all the potholes and bumps. Truck - just keep pouring gas in.
Btw, ask why they have such huge sales on those diesel engines. Cuz they had major problems with that Italian diesel.
Didn’t specifically mean to compare those two cars, but yes, reliability and gas mileage will impact cost of ownership.
However, with a truck like the Ram diesel (I believe GM and Ford will soon have them too), gas mileage isnt THAT huge of a factor. Maybe $500 or so per year.
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