Do we have a pickup glut already?

[Groover]

GM shuts down Indiana plant for 2 weeks

"Feb 23 (Reuters) - General Motors said on Thursday it will halt production at its Fort Wayne Assembly truck plant in Indiana for two weeks from March 27 as inventory starts to outweigh demand with the easing of supply-chain snags.

Shares of the U.S. automaker fell 3% in early trade, while rival Ford Motor Co was about 1% lower.

After two years of U.S. automakers scrambling to keep pace with demand amid a parts shortage, GM's decision to cut production of its highly-profitable pickup trucks signals a shift in the status quo.

"GM probably is trying to maintain pricing power with this move but it's also contradictory to what they've been saying for a while recently that demand remains very strong," Morningstar analyst David Whiston said."

I would guess that more than one manufacturer is affected. Ford sent me a $2000 coupon for a new F series truck a couple of weeks ago. I just checked incentives for the F150 and they are offering 0% financing for 3 years plus $1000 Bonus cash through the end of February.

[jjj]

Same here, 2002 Ford F 350 Dually with 38,000 miles. This baby is
going to have to last a long time. I will never be able to
afford a new truck these days.

[BB_TX]

I ordered a new F150 KR loaded August 2021. When I first inquired to salesman he said all trucks were being offered at $10,000 over MSRP, whether on the lot or special order. I said no thanks. Got an email two days later saying they could order me one at $5,000 over MSRP. I said no thanks. Got an email a few days later saying MSRP. I said no thanks. Got another email fairly quickly saying come in and talk. I did. Ended up special ordering at almost $3,000 under MSRP and getting almost $10,000 more for my truck than it had been appraised at several months before. And I could keep my truck until the new one was delivered, estimated at 6 months. And since it arrived December 30, the finance guy said he had a Ford ESP he would give me for free as he would have to otherwise turn it back to the dealer the next day. Another $3,000+. With that, the savings on sales tax by trading my truck, getting to keep it 6 months for free, and the $3,000 off MSRP I was willing to sign. Still not as good as the $14,000 off sticker end of model year left over price I bought my previous truck for, but good enough at the time.

Just depends on how bad they want to deal.

[JRscooby]

Could we be waking up to the understanding that GM is not in business to make vehicles?
If they can make fewer vehicles, sell at higher price increase profits that is what will happen.

[HawkTX]

A friend of mine is looking for one of the new Ford Raptor V-8 trucks and he can't find a single dealer in the US that doesn't have it marked up $30K to $40K over MSRP. I bought mine (the V-6 model) in 2020 for $8,500 below MSRP. How things have changed!

[Groover]

opnspaces wrote:
^^ I second this and add I always buy used over paying the inflated prices for brand new.

I mostly buy new because the used trucks that I have found generally either cost as much as a new one or have been totally ragged out. I suspect that most people trading for a new vehicle focus on how much the dealer is giving them for the used one are oblivious to the fact that they are paying way too much for the new vehicle. Then they honestly believe that their used truck is actually worth what the dealer was offering.

Some years ago I special ordered a loaded F250 and about 5 years later I saw someone advertising essentially the same truck, including year model, and he was asking more than I had paid for mine new.

[opnspaces]

^^ I second this and add I always buy used over paying the inflated prices for brand new.

[Sport45]

TurnThePage wrote:
I've finally accepted that it will be much cheaper to drive my current pickup into the ground, repairing as needed along the way. I don't like it, but I'm not paying the BS prices they're asking these days. And I'm not holding my breath waiting for this glut to have a positive impact.

I think this has always been true. Trading in every year or three is an expensive lifestyle. I typically keep a truck 12 to 15 years and get everything I can out of it before buying another.

[BB_TX]

Local dealers (Chevy and Ford) have considerably more trucks than a year ago. But far less than before the chip related shortage.

[Grit_dog]

TurnThePage wrote:
I've finally accepted that it will be much cheaper to drive my current pickup into the ground, repairing as needed along the way. I don't like it, but I'm not paying the BS prices they're asking these days. And I'm not holding my breath waiting for this glut to have a positive impact.

It already is having an impact. Has been for about 6 months now. 1/2ton trucks are basically discounted to previous levels (albeit based off of greater annual increased msrp than pre covid) all over the country.
But it’s also likely that as predicted, the whole Rona fiasco has auto makers adjusting how they do business and trying to balance greater profitability (or greater sales price at least) with lesser inventory.

[monkey44]

My 2015 Chevy HD with 60,000 miles on it will get a whole lot more miles on it before I spend the kind of money truck dealers are asking. Matter of fact, it might be the last truck we buy because we do a lot fewer miles each year now as well. The truck is well maintained so might even outlast both of us, as least as far as our camping goes.

[TurnThePage]

I've finally accepted that it will be much cheaper to drive my current pickup into the ground, repairing as needed along the way. I don't like it, but I'm not paying the BS prices they're asking these days. And I'm not holding my breath waiting for this glut to have a positive impact.