Do Dodge Ram Trucks Hold Their Value?
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When most people buy a brand new truck, they think only about the present. They think about how great the truck looks, what kind of modifications they want to do, and how they cannot wait to drive the truck out of the dealership lot. However, smart drivers think beyond that…they think about resale value. Yes, resale value.
You might be thinking why someone who just bought a brand new truck would even be thinking about reselling in but the truth of the matter is, trucks are investments, the same way homes are. Sure most people buy a house knowing it will be their starter home but most people do not, same with cars. So if you own a Dodge Ram or you are thinking about buying one and are wondering, “do Dodge Ram trucks hold their value?” Well, you are about to find out.
Let’s get started!
Do Dodge Ram Trucks Hold Their Value?
When it comes to trucks and holding their value, the Dodge Ram holds its value better than the Ford F-150 for comparison. The Dodge Ram will lose (depreciate) 42.5% over the first five years of ownership.
There is a lot more to answering this question, so keep reading to learn more!
Why Do Some Cars Hold Their Value More Than Others?
Why some cars hold their resale value while others do not depend on one word: depreciation. What is depreciation you ask? Depreciation is how much the value of your ruck will decrease after you drive it out of the dealer lot.
Yes, it is true. The moment you drive your brand new ruck out of the dealer lot, its value has already started to decrease. We understand how frustrating that must be that is true for every single model, so do not feel too distressed over it.
You will want to look at the five-year plan for the resale value of your vehicle before you buy it. Or you can do this with the ruck you currently have and are thinking of selling.
Some owners love their truck but have to sell it because they are moving or are no longer able to care for it due to other obligations.
Or maybe, they do not drive it as much as they used to. The resale value refers to what your vehicle will be worth when you try to sell it or trade it down the line.
Please keep in mind that your vehicle’s depreciation depends on these three factors: fuel, maintenance, and insurance.
Also, trucks and bigger cars do not hold their resale value, as well as smaller sedan cars and that, is just how it is. It does not mean that they are not great cars but the demand for smaller vehicles is just higher.
Before we get into whether Dodge Rams are able to hold their resale value, here is a quick and tidbit about used cars: According to Business Insider, the moment the driver drives his or her new car off of the dealership lot, it will hold only 37 percent of its original value after five years. Yes, only 37 percent after five years.
Five years may seem like a long time but it actually is not, and it will come and go before you know it. This means, every single day that passes, your trucks value will continue to deplete.
So if you bought a brand new truck for around $30,000 then know that five years later, it will be worth about $11,000.
This is why knowing the resale value of your car or choosing a car that holds its resale value is so important.
So just because a car you want, say your dream car, is known to not hold its value, does that mean you should forget about it? No, absolutely not. If you want a car that is not known for its resale value and you do not see yourself selling it at all, then you should get the car your heart desires.
However, you also have to keep in mind that if, and we do mean if, you do decide to sell it for whatever reason, you will not get a good price back. If you are able to accept this now then everything will be fine.
However, if you know that the car you are buying now is just a starter car for you (the same way people have starter homes) then it is wise to get a car that holds its value. Your future self in five or more years will thank you.
Dodge Ram Truck Depreciation
The Dodge Ram is quite a popular name among truck lovers. This is true for many reasons. For one, the Dodge Ram has some of the best towing and cargo capacity in its class.
It is very hard to find a truck that can match up to the Dodge Ram when it comes to both of these features. The Dodge Ram also features many class exclusives such as the RamBox storage style, reclining rear seats, and a rear fold-down center console.
It is also quite spacious inside, so you do not have to worry about your passenger (or passengers) feeling tight and uncomfortable. The Dodge Ram is also more high tech than other trucks in its class.
So this means that not only does the high tech help you as a driver feel more connected, but it also makes your Dodge Ram more capable and easier to drive as well. It is comforting to know that Dodge tries to keep up with its competitor and you can rest assured knowing that you are driving a pretty advanced car.
However, despite its popularity and great techs, this is not the reason why we are talking about. What matters is does it hold its resale value? Is a used Dodge Ram as valuable as a brand new one? Let’s find out!
According to Motley Fool’s website, the answer to that is: yes. They note that the Dodge Ram is the third most popular vehicle on the market today.
The Dodge Ram’s resale value is quite tricky. Here is the reason why: its value does depreciate quite fast but it is only short term.
Over five years, the Dodge Ram actually retains its value even more than its competitor, the Ford F-150.
What that means is the Dodge Ram depreciates 45.2% over five years. This is a lot more than the average truck however it is less than the industry average.
So if you are looking up the resale value of your brand new Dodge Ram and are feeling a bit anxious, do not worry. Their value may be low off the bat but it will not continue to depreciate.
In Conclusion | Why It All Matters
Resale value matters because if there is even an off chance that you will sell your truck in the future then it is a good idea to pick a brand that will hold its value.
You do not want to spend a bunch of money on a brand new ruck only to sell for less than a fraction of the price. Despite taking care of it, both externally and internally, some brands do not hold their value as well as others.
However, it does not mean that you cannot get the best deal for your used ruck. As long as you take care of it, then you can be confident knowing that someone out there will want your ruck in that exact color, year, and model.
Trucks do have a more difficult time keeping their resale value that cars like sedans but that is just how the market runs.
If you take care of your vehicle and find a great buyer, then you can rest assured that you got the best deal you could get.
And if you are currently thinking of buying a Dodge Ram or if you are currently thinking of selling your Dodge Ram then you can rest assured that it does indeed, hold its resale value quite well.