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Imagine what you could do with an extra $1,898 per month. Would you buy a Ram truck with it?
One 2024 Ram truck buyer did, and it caught the attention of a financial guru, as featured on the Good Financial Cents Facebook page. He says, “A 2024 RAM 2500 truck buyer just paid $1,898/month for 84 months for his new truck payment.”
“That’s not a car payment, that’s a mortgage on wheels. He borrowed $111,000 for a truck, and the repayment is $159,000. That’s $47,000 in interest to drive it off the lot.”
“At 10.6% APR, this Ram truck is costing more than some people’s first house. Imagine putting $1,898/month into an investment account instead: you’d have over $200,000 in five years.”
“Debt keeps you stuck. Assets set you free.”
His post serves as a jarring wake-up call.
It highlights a sobering transaction: a 2024 RAM 2500 buyer is now on the hook for a stunning $1,898 per month.
The numbers are staggering.
This Ram truck buyer’s payment is as much as some people’s mortgage payment. A $111,000 loan becomes a whopping $159,000 repayment, resulting in $ 48,000 in interest to drive a new Ram pickup. With an interest rate of 10.6% APR, this payment is more than many people’s first home. As a veteran of the automotive industry, I’ve seen some intense financing, but this situation encapsulates a new financial reality that many truck buyers are facing.
It’s easy to look at that number and feel a sense of shock, maybe even judgment.
But like Good Financial Cents, let’s look at it as a teachable moment. It’s a prime example of a market where high demand, limited supply, and rising interest rates have converged to create a perfect storm of financial risk for the unprepared consumer. So, let’s unpack this, and more importantly, let’s talk about how you can avoid a similar fate.
The first thing to understand is how we got here. The days of low-interest, subprime financing are largely behind us, especially for vehicles priced at $ 100,000 or more. Cars Commerce says dealers are no longer competing with each other for customers by offering rock-bottom rates.
Instead, they’re navigating an environment where borrowing money is expensive, and they pass that cost on to you. A buyer, mesmerized by the allure of a fully-loaded RAM 2500, might get caught up in the emotion of the purchase. The focus shifts from the total cost of the vehicle to a single, palatable number: the monthly payment.
A Classic Trap
This is a classic trap, and it’s why understanding the actual cost of financing a $111,000 truck is so critical. You’re not just buying a truck; you’re buying the loan itself, and the interest on that loan becomes an asset for the lender and a liability for you.
So, is a $1,898 per month truck payment normal in 2024?
The simple answer is no, it’s not normal for the average car buyer. But for a specific segment of the market—those buying fully-loaded, high-end trucks with little or no down payment in a high-interest-rate environment—it’s becoming far more common than you’d think.
Bankrate reports that the average new car payment in 2025 is now $749 per month. Bankrate Chief Financial Analyst Greg McBride, CFA, advises people to consider the total payments over the loan term. “The $35,000, six-year loan at an eight percent rate costs more than $44,000,” he explains. “Yet the vehicle will only be worth about one-third of what you paid for it six years from now.”
It’s a symptom of a larger issue.
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Too many buyers are prioritizing wants over needs and allowing themselves to be “payment-shopped” by dealerships. The dealership salesperson, who is trained to sell you on the monthly payment, will rarely highlight the total interest paid or the long-term implications of the loan.
Their job is to get you into a truck today, not to help you build financial freedom in five years.
So, let’s get to the good stuff. What can you do to avoid this scenario? The single most powerful tool you have as a consumer is knowledge. Before you even set foot on a lot, you need to understand your budget and get pre-approved for a loan. This gives you a clear picture of what you can truly afford and allows you to negotiate as a cash buyer.
When you’re ready to learn how to afford a new RAM 2500 truck payment without getting buried, you need to remember that every dollar you put down on the vehicle is a dollar you don’t have to finance and pay interest on. A significant down payment can dramatically lower your monthly payment and, more importantly, the total interest you’ll pay over the life of the loan.
A Different Perspective.
I also want you to think about this from a different perspective, one that the viral post touched upon. What if you were to redirect that money? One of the most important lessons I’ve learned about personal finance is that debt keeps you stuck while assets set you free.
The post from Good Financial Cents put it perfectly: if you were to put that $1,898 into an investment account for five years, you’d have over $200,000. That’s a staggering difference. This isn’t to say you should never buy a truck, but it does force us to consider alternative financial strategies for buying a new truck.
That could mean buying a used model with a lower price tag, or even buying a certified pre-owned vehicle that still has a great warranty.
It may mean waiting until interest rates drop. You might not get the biggest, baddest truck on the lot, but you will save tens of thousands of dollars in interest and give yourself the financial flexibility to invest in assets that actually build wealth over time.
I often see buyers fall in love with the technology and comfort of a new truck and forget about the financial implications. They get caught in a cycle of upgrading every few years, trading in a vehicle with negative equity, and piling on more debt.
This is how you avoid getting stuck in a cycle of car loan debt. You must become a savvy consumer who understands the whole picture. Look at the total price, the interest rate, and the loan term, not just the monthly payment. Be realistic about your needs versus your wants.
Do you really need the top-of-the-line trim with all the bells and whistles, or will a lower-spec model serve your needs just as well while saving you a significant amount of money?
It all comes down to making wise financial decisions when buying a new car. This doesn’t mean you can’t have a great vehicle; it means you have to be intentional about your purchase.
- Take your time, do your research, and don’t be pressured into a quick deal. Always, always, always read the fine print.
- Never sign a loan agreement unless you fully comprehend the numbers.
Remember that the interest rate is the single most important aspect of any loan, and understanding high interest rates on new vehicle loans is crucial to preventing a five-figure interest payment.
Conclusion:
So, in the end, that viral social media post is more than just a shocking story; it’s a valuable lesson. It’s a reminder that a vehicle can either be a tool that serves you or a financial burden that holds you back. The difference lies in the choices you make before you even step into the showroom.
I want to hear from you.
What’s the highest monthly vehicle payment you’ve ever heard of, and what advice would you give someone in that situation to help them get back on track financially? Click the red Add New Comment link below and let us know.
Check out my Toyota Tacoma pickup story: I Know I’ll Trigger Some People Here, But I Just Paid $37K For My 2025 Toyota Tacoma. The Best Part Is, I Paid Cash, and Have No Monthly Payments
I am Denis Flierl, a Senior Torque News Reporter since 2012. My 30+ year tenure in the automotive industry, initially in a consulting role with every major car brand and later as a freelance journalist test-driving new vehicles, has equipped me with a wealth of knowledge. I specialize in reporting the latest automotive news, covering owner stories, and providing expert analysis, ensuring that you are always well-informed and up-to-date. Follow me on X @DenisFlierl, @WorldsCoolestRides, Facebook, and Instagram
Photo credit: Denis Flierl
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Source: torquenews.com
