Price breaks on new Pickups?!

[Groover]

With all of the automotive production issues I expected it to be year or more before any discounts were offered. Then I got an email from Ford offering me a $3,000 on any new pickup or Expedition. Partial text below.

" Allow us to sweeten the deal to get you into a new Ford. Simply take this personal code with you to your local Ford Dealer and choose one of these blockbuster offers. That’s it. Because we like to keep things simple.

It’s the perfect time to head in, but it won’t last long. This Exclusive Cash Offer expires on A?p?r?i?l 4, 2?0?2?2."


I thought that was an aberration but then I saw this article about discounts on the new Siverado!

Silverado discounts

"The Chevrolet Silverado discount offers prospective buyers a $500 or $750 cash allowance and package rebates that equate to savings of up to $3,250 for select model ranges of the 2021 model. Those looking to buy the more modern 2022 1500 Limited model will have access to a $500 cash allowance and package rebate that can amount to $2,000 for a total saving of $2,500."

It seems that things are finally getting better for truck buyers!

[4x4ord]

Thermoguy wrote:
I think my point - it doesn't matter what you pay for a 2021 or 2022 truck or any vehicle. I think these will be tagged as COVID - kind of like flood vehicles. They may be OK on the surface but with substandard parts and workmanship, they will not be worth the same as a similar age vehicle not manufactured in these years.

From personal experience, not related to auto manufacturing. We have a manufacture we work with. They had a supply problem, found a similar component from another manufacturer, tested it, seemed fine. We now have a 70-80% failure rate on that component and everything manufactured with it has to go back for replacement. These were manufactured in 2021. It took 4-5 months to figure out what was causing the failures.

Of course, the used market is kind of stupid when you look at past experience. People think they are getting a deal and will pay anything for a vehicle that isn't worth half what they are paying for it. So, maybe my COVID vehicle won't mean anything to enough people to keep them from buying, but then they will complain and write on forums the vehicle they have is junk, they will switch from GM to Ford or vise versa because that 2022 was junk and therefore all years must be junk...

You may be right with your assessment of Covid trucks, however, my experience would suggest otherwise. My '21 has a build date of 01 21 21 and as far as I can tell it is the best built truck I have ever owned, on the other hand, my '17 lacked quality workmanship. On the '17 the fit and finish wasn't what it should have been and it had some squeaks and rattles.

[Thermoguy]

I think my point - it doesn't matter what you pay for a 2021 or 2022 truck or any vehicle. I think these will be tagged as COVID - kind of like flood vehicles. They may be OK on the surface but with substandard parts and workmanship, they will not be worth the same as a similar age vehicle not manufactured in these years.

From personal experience, not related to auto manufacturing. We have a manufacture we work with. They had a supply problem, found a similar component from another manufacturer, tested it, seemed fine. We now have a 70-80% failure rate on that component and everything manufactured with it has to go back for replacement. These were manufactured in 2021. It took 4-5 months to figure out what was causing the failures.

Of course, the used market is kind of stupid when you look at past experience. People think they are getting a deal and will pay anything for a vehicle that isn't worth half what they are paying for it. So, maybe my COVID vehicle won't mean anything to enough people to keep them from buying, but then they will complain and write on forums the vehicle they have is junk, they will switch from GM to Ford or vise versa because that 2022 was junk and therefore all years must be junk...

[4x4ord]

From 2011 to 2022 the price I've paid for new top of the line loaded Ford pick ups has gone from $55k to $90k... So the inflation on my trucks has been 4.5% per year. Even though all my trucks have been fully loaded, the loaded '22 is a lot more truck than the loaded '11 was. When I take into account what I've been able to sell my used trucks for there is no question trading often is working out amazingly well.

[Grit_dog]

Thermoguy wrote:
I don't understand why so many people are buying new vehicles right now. With dealers charging a premium above sticker and vehicles coming incomplete with no seat heaters or no adaptive cruise, or whatever that chip they can't get did for the vehicle, why are people buying right now and why are they willing to pay a premium? I get it some have to for whatever reason, but many just want a new car. Can you imagine how the market would change if people weren't willing to accept incomplete cars, cars at a premium price, or cars that are going to be tagged "COVID" in the future? It's like buying something that was made the Friday before Super Bowl - remember the commercials? I would guess that in a couple years these cars will be worthless just because they will have known faults, workmanship issues, etc. If everyone only purchased what they had to have for work, etc, then manufacturers would have a slump in sales and would need to have incentives, discounts, lower the price, whatever they could to get people to buy. Sure, your used car value would go down, but its all relative, if they give me $10K more for my truck than what it is worth but then charge me $10K more for the new one, its the same difference. These vehicles aren't worth what were paying for them anyway, and the used market is a joke with nothing but junk. Just so you understand, I am not in the market. I would love to have a new truck, but my 2015 is low miles and looks and drives like new. I will wait until the manufacturers can produce a vehicle with all its components (and not using sub par suppliers to do it).

I agree largely with everything you said. The fact of the matter remains that MANY people just aren't as concerned with price, or their personal finances, saving money, etc.

I can compare our family to many very similar families that we are friends with that have very similar incomes/family situations/expenses.
A couple of them are smart with their money and they generally have more money and more toys and owe less, overall. And others are living almost paycheck to paycheck with $250k + combined salaries.
I'd say half of those folks wouldn't think twice about a new vehicle, regardless of price, because "the payment isn't THAT much more!"

There's a reason we have that big stupid brodozer truck in my signature (aside from it looks COOL! LOL).
I couldn't pass up a 4 year old deleted diesel with 60k miles on it for $37k when my "old" diesel had 180k+ miles on it and sold for $27k!
(Plus it was a straight across trade for our old truck and old TC, so the State got $0 tax out of either of us!!)

If I had to give $50k for the 2016 (which is what it's still worth currently with the recent inflation), I'd still be rollin deep in the 07 with over 200k now.

[Thermoguy]

I don't understand why so many people are buying new vehicles right now. With dealers charging a premium above sticker and vehicles coming incomplete with no seat heaters or no adaptive cruise, or whatever that chip they can't get did for the vehicle, why are people buying right now and why are they willing to pay a premium? I get it some have to for whatever reason, but many just want a new car. Can you imagine how the market would change if people weren't willing to accept incomplete cars, cars at a premium price, or cars that are going to be tagged "COVID" in the future? It's like buying something that was made the Friday before Super Bowl - remember the commercials? I would guess that in a couple years these cars will be worthless just because they will have known faults, workmanship issues, etc. If everyone only purchased what they had to have for work, etc, then manufacturers would have a slump in sales and would need to have incentives, discounts, lower the price, whatever they could to get people to buy. Sure, your used car value would go down, but its all relative, if they give me $10K more for my truck than what it is worth but then charge me $10K more for the new one, its the same difference. These vehicles aren't worth what were paying for them anyway, and the used market is a joke with nothing but junk. Just so you understand, I am not in the market. I would love to have a new truck, but my 2015 is low miles and looks and drives like new. I will wait until the manufacturers can produce a vehicle with all its components (and not using sub par suppliers to do it).

[JKJavelin]

4x4ord wrote:
I just saw the window sticker for my June ordered pick up. The MSRP has gone up $3k since June in Canada and I'm not aware of any incentives.

That's been going on for awhile.
When I was truck shopping in 2018 on the Ram website, identical trucks had different prices on the window stickers....the higher VIN was a higher price. Sometimes the base price went up usually certain options went up. But prices change throughout the model year. And always up!

[4x4ord]

I just saw the window sticker for my June ordered pick up. The MSRP has gone up $3k since June in Canada and I'm not aware of any incentives.

[mosseater]

I had a rebate coupon that expired before I could make an order for my '22 F-250, but they sent another in the mail before I closed the deal and took delivery in August, so I got the $2500 rebate in the end anyhow. There were very few '21's on Fords lot anywhere because they shut down production early and became the worlds largest manufacturer of medical ventilators. My sales rep said '22s are coming on line now. I got mine early because it was placed as a lot order. Right place, right time, right sales rep. And a decent APR to boot. Pretty good deal and I love the truck so far. Last week was it's first salt bath of the winter so....*CRINGE*.

[BB_TX]

Retired JSO wrote:
This is a screenshot from Ware Chevrolet in Blairsville GA today. Vehicles marked up $4K.
[img][/img]

We’ll, have they changed the photo posting website?

You have a double img in your link.

[Retired_JSO]

This is a screenshot from Ware Chevrolet in Blairsville GA today. Vehicles marked up $4K.
[img][/img]

We’ll, have they changed the photo posting website?

[JKJavelin]

I was at the Ram dealer this week for oil change, fuel filters, transfer case fluid change.
The last time I was there, in July, they only had one vehicle in the showroom, a 1500 pickup.
This week they had a Challenger ($55,000),a Grand Cherokee Trackhawk ($97,000), and a Grand Wagoneer Series III ($112,000). That Wagoneer was close to 7 feet tall!
I didn't see any sale price on any of them.
JK

[mkirsch]

One indication that it is NOT a sign of "cooling off" is that the advertisements have NEVER slowed down throughout all of this. Even when dealers have literally NOTHING to sell, they are still buying ads.

[Groover]

IdaD wrote:

valhalla360 wrote:
$3k off a $60-80k sticker price...whatever.

No kidding, it doesn't even matter at that point. I need to upgrade the wife's ride at some point but I really want the market to cool off first. Maybe later this year.

I am optimistic that this is the first sign of cooling off. Maybe I can get a discount from list price as well.

[IdaD]

valhalla360 wrote:
$3k off a $60-80k sticker price...whatever.

No kidding, it doesn't even matter at that point. I need to upgrade the wife's ride at some point but I really want the market to cool off first. Maybe later this year.