Quote:
Originally Posted by Derek Sutton
Dodge has 96 month financing, and Chrysler credit allows for 175% loan to value ratio. They’ve created their own inescapable cycle with their truck buyers. They’ve also historically flooded the market with their trucks drastically hurting their re sale value. They’ve really built brand loyalty by creating finance scenarios which their customers cant get out of by purchasing a GMC or Ford. So they convince theirs owners to “dig up” by simply financing another truck three years later “for a little more money, but full warranty”. It’s really sad, they draw customers back because to move out of a Ram to a GM or Ford generally means a huge payment jump (max 84 months) or they are unable to finance with anyone else do to their massive inequity their high for most other brand credit is capped at 125% loan to value.
On the SUV side, it’s the same with the Dodge Journey. New SUV for $200/ month, over 8 years. So many uneducated car buyers fall into this trap, and they to get caught in the same cycle as the truck buyers.
Dodge buyers tend to worry all about payment vs value, cost of ownership and future value.
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Those numbers for Dodge are horrific. I know that a lot of people in Calgary have/had well paying jobs but I always wondered how people were affording all of these $80,000 and $90,000 trucks. I never understood the appeal of spending so much for a truck that is used for commuting 90% of the time when there are so many good cars available for significantly cheaper.