Price of new trucks way above the economic recovery rate

[monkey44]

If you 'casually' watch truck prices, we see a gradual increase over time.

Was once pretty easy to ask a salesman "How much difference between last year and this year." Answer: "Oh, couple hundred bucks." A truth maybe in base price - although not that low in reality. But not such a jump that it seemed outrageous.

Then suddenly, a few large jumps, like $5000, and at the same time, all the ads giving $5000 off. Then the prices eroding the "Off Factor" as the prices really did jump that high... and the "Oh, a couple hundred bucks." Still the same answer, but the discounts much lower, means the truck 'seems lower' but in fact isn't.


For, example, when you look at a 2500 GMC in 2003 at well under $30k, and then look at the COLA since that time frame, about 12.8% combined, we see a price increase in fact of over 28%% combined, makes you wonder about value for the bucks.

GM saved a ton of money cutting off payouts, and cutting down a lot of union benefits for retired GM employees, but it sure doesn't reflect that in the selling prices.

SO, it always makes me wonder where all that sales money goes, and where that buyer money comes from - when all of the buyers make 13.8% more money over ten years (and 1% on savings accounts) but the price of vehicles MSRP jumps over 25% ...

Most recent dealer quote I got (couple months ago, local) was $39k on a $46k list = on the lot and not equipped well). So, even with the 'great deal' that's still about a 30% increase in numbers, and when we adjust for 'inflation' ... still 20.2% jump in real dollars.

So would like those folks that adjust those numbers to send it to that person who writes my check, so I can afford to go down and pick out one of those pretty awesome new trucks ... soon as GM releases that Double Cab in the 2500HD 🙂 🙂 🙂

[monkey44]

Opps, thought you were quoting him to quote me ... I'll go climb back in my tree now.

[Francesca_Knowl]

monkey44 wrote:


Where did you get my 2003 at $32k -- I paid $27,800 ... not $32k.

Check the quoted post, Monkey- I was talkin' to Dayle1. Those are HIS figures, not yours. 🙂

[monkey44]

Francesca Knowles wrote:

Dayle1 wrote:
My experience is very similar to OPs, $32k in '03 and $41k last month. So, a 28% increase in price. I gave up bucket seats, but moved to 3500 + crew cab + all the nice new features like EB, IBC, etc. so I am really happy with the switch. If I come close to my target on selling the '03 and the '13 take off bed, my cost to upgrade will be about $23k. I don't know how a 28% increase over 10 years compares to inflation, but every single personal expense will not match the inflation rate, some higher and some lower. That's life.

Adjusted for inflation, your 32k in 2003 is 40.5k now, or almost exactly the same amount in "real" dollars.
link to calculator

Better yet, since you evidently upsized, you most likely actually BEAT inflation, paying "less than" you'd have paid for the same size truck in 2003. In real dollars, of course.

Where did you get my 2003 at $32k -- I paid $27,800 ... not $32k.
And, I didn't up-size, my 2003 is a 2500, same as the 2014 truck. I think your confusing other posts with my posts, maybe. Holiday time, everyone's confused, it's that great party atmosphere ... 🙂 🙂

My truck = '03 GMC 2500 4x4 X-cab SB 6.0L gas ... similar truck in 2014 model I looked at - but less equipped. No bucket seats, no upgrade music system in the 2014.

[Francesca_Knowl]

Dayle1 wrote:
My experience is very similar to OPs, $32k in '03 and $41k last month. So, a 28% increase in price. I gave up bucket seats, but moved to 3500 + crew cab + all the nice new features like EB, IBC, etc. so I am really happy with the switch. If I come close to my target on selling the '03 and the '13 take off bed, my cost to upgrade will be about $23k. I don't know how a 28% increase over 10 years compares to inflation, but every single personal expense will not match the inflation rate, some higher and some lower. That's life.

Adjusted for inflation, your 32k in 2003 is 40.5k now, or almost exactly the same amount in "real" dollars.
link to calculator

Better yet, since you evidently upsized, you most likely actually BEAT inflation, paying "less than" you'd have paid for the same size truck in 2003. In real dollars, of course.

[whsk]

I really like my 2013 ram 3500-i paid through the you know what-it is what it is-whsk

[NJRVer]

A couple things to take into consideration.
What was the price of raw materials back in '03? It takes a lot of steel to build a truck and the price of scrap is way up. Scrapyards aren't giving that high dollar and then selling it for a loss.

The price of energy is way up. It takes a lot of energy (oil, natural gas, electricity) to make all that plastic, steel, and to light, heat, cool, those assembly lines, and run those robots.

Trucks are in demand because construction is coming back. The manufacturers make more profit on a truck than a car. They are just taking advantage of that.

[Dayle1]

My experience is very similar to OPs, $32k in '03 and $41k last month. So, a 28% increase in price. I gave up bucket seats, but moved to 3500 + crew cab + all the nice new features like EB, IBC, etc. so I am really happy with the switch. If I come close to my target on selling the '03 and the '13 take off bed, my cost to upgrade will be about $23k. I don't know how a 28% increase over 10 years compares to inflation, but every single personal expense will not match the inflation rate, some higher and some lower. That's life.

[monkey44]

Francesca Knowles wrote:

monkey44 wrote:

Who said anything about payments - I'm talking about price - period.

And if I sell/trade my truck, what does that have to do with the price, the price is the price ... and it's increased at a faster rate than everything else, including all those "value-less" dollars the feds print. If they're so value-less, just give some extra to me in the form of a check, or even cash will do.

This is the U.S.of A.- and you're right...the price is the price.

Thing is, in this our much-worshiped "whatever the market will bear" economy, "the price" is based on the market.

Which market seems to me to be perfectly willing to pay big upcharges for faux-leather seats, built-in GPS systems, raised-letter tires, and whatever other frippery that we're quite willing to believe to be essential to what used to be simple modes of transportation.

On t'other hand...they gussied up pickup-type trucks they be puttin' out these days sho' is purty! 🙂

Yes, very nice truck, not actually trucks anymore - fancy,heated seats, electronic everything, push-button controls, air ride -- Oh Yeah, still got four tires and a steering wheel (oppps, sometime six tires) ... only way we recognize it's a truck is the bed.

But my point is - all the hype we see about "deals" are not really deals. And for the record, yes we can afford it and no this is not a complaint, more a statement of facts ... comparing "the best deal then with the best deal now" shows us the pricing factors rise much faster than our economy (well, based on COLA) which tells us how much the dollar value changes. But again, COLA is another manipulation of figures. For example: Gas/diesel is NOT a part of that calculation, but in fact is probably the most single important variable in economic evaluation. Yet, it's not counted ... we wonder why?

Part of it, maybe, if we include fuel products the real COLA would rise faster, and most federal and state, and military pay, is based on COLA .. so if the true cost of living were put in play, the feds would need to give out raises (which it claims keeps up with costs of living) and we'd be able to afford these new trucks with the same impact on our paychecks as it did ten years ago.

So, my point is not to complain about the price exactly, but to illustrate it happens ... and wonder why we allow it to happen. If we keep buying trucks for more than the value, prices will continue to rise ... and we'll proportion a larger piece of our individual pie to auto makers.

SO, as I'm now in the market for a new truck - no matter how well you care for it, a truck does wear out - and when we looked at the prices and the "ads voice", we see a different picture than in the past.

[bucky]

Powerdude hit the nail on the head. Private sector wages are stagnant, and prices on every commodity we buy are skyrocketing.

[Charlie_D_]

Someone convince me that inflation is 1.5%. Savings interest nonexistent, food prices have not risen or packaging sizes has not decreased, millions still unemployed and have stopped looking for jobs. Wages are not depressed. Unemployment benefits have not been extended to as long as 52 weeks and now an effort is underway to extend even further.

[Hannibal]

Powerdude wrote:
What economic recovery?

Did you decide to not participate? Construction is up. Home sales are up. Retail sales are up. Even new pickup sales are up.

[Hannibal]

It's a free market economy. Trucks are priced according to what we're willing to pay. It has nothing to do with the cost of labor or COLA. And I have nothing against profits. And we have enough in savings to buy several new trucks cash if we're so inclined. I simply don't see $65k worth of truck in any pickup truck. $30k for a bare bones truck is crazy. My first '95 2500HD Cummins powered Laramie was $24,400. Now a Prius costs that much. Why? Because we pay it. We have no discipline.

Ever looked into how a Prius works? That is cool. A diesel electric hybrid would be the bomb!

[Powerdude]

What economic recovery?

[rexlion]

fla-gypsy wrote:
The difference is everyone wants a lot of fluff in their trucks now which drives up the cost.

I'd prefer one without the fluff, but fluff is now standard equipment.

Although we do want power seats, we really can do without the leather heated and cooled seats, the NAV, the electronic control center for climate and radio and everything, the sunroof, the power tilt/telescope wheel, the air suspension, the built-in vacuum, and all that other junk. What's next, a blender in the dash for making mixed drinks? Sheesh.

I could use a new tow vehicle, but they all cost more than a year's pay for me now. And the multitudinous electronic gizmos will cost a fortune to fix when they go on the fritz.

[mich800]

monkey44 wrote:

Francesca Knowles wrote:

monkey44 wrote:

For, example, when you look at a 2500 GMC in 2003 at well under $30k, and then look at the COLA since that time frame, about 12.8% combined, we see a price increase in fact of over 28%% combined, makes you wonder about value for the bucks.

Ya know what? I just looked, and either your math is off or I'm missing some important detail.

$30,000.00 in 2003 is $38,000.00 in 2013 dollars, according to the adjust-for-inflation calculator at this link.

MSRP's for the 2014 (one year newer than 2013) GMC 2500 PU begins at $32,000. Link
Even assuming that folks'll want a bunch of upcharge bells and whistles, I don't see the huge out of bounds increases you seem to.

What am I missing?

Francesca: Well, you're missing the price I paid for my 2500 4x4 GMC in 2003 and the price I was quoted for a "similarly equipped" 2014 at the dealer last month. Those are the actual numbers I used, not the 'fantasy numbers' we all can see in the ads ... Ever seen one in a dealer lot for the price you see on the ads? And, lease, same way. That 'quote' is for a bare-bones work truck that no one wants or buys.

My 2500 GMC truck cost me just under $28,000 in 2003, but when I went to the dealer, the price for 2500HD was $46,000. But, the dealer will give off price to $39,800, and the equipment is less than in my original truck in 2003. This 2014 truck had bench seat (Buckets = $1200 option in mine) and minimal radio/mp3player, where mine has upgrade = $1000 for 6CD and Bose, top of the line at that time.

So, the prices are a bit out of line with other components of our economy - that's the only point I'm trying to make here. When we look at truck prices, I just drop my jaw ...

That is not really a good study. This is just what you paid and quoted. Maybe your deal was really good on the first purchase and not so good on the second. Just because the market dictates you cannot get as good a deal now does not mean prices have increased more. Just that demand is stronger now.