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 🙂 🙂 🙂

[Engineer9860]

Wow. I mean wow.

[spoon059]

Ray & June wrote:
If you want to blame President Obama for higher taxes, maybe you should also blame him for gas under $3.00/gallon, highest domestic oil production in history, imported oil down by 33% and the stock market at record breaking levels. Let's blame him for everything, OK!

Turn off Fox Noise and study the issues. Google is your friend.

#1 I don't watch Fox News
#2 You don't know my situation or exactly how I am being affected, so I would encourage you not to speculate... it makes you look foolish.
#3 I have studied the issues, and I understand the logic behind rewarding people for hard work (IE people making $300,000 a year because they worked hard and earned it)
#4 I have a job that lets me see the other side of the socialist ideologies common amongst liberals. I do NOT understand the logic behind taxing the workers to provide an ever increasing "safety net" for those that don't want to study, get education/certifications, get a job, prepare for the future and accept responsibility for themselves.

Before I am part of yet another de-railed thread, I am going to refrain from replying to any more of these posts in this thread. Please feel free to PM me if you wish to continue this conversation, or else start a specific thread in an approved area to continue.

[Ray___June]

I'm sorry. I didn't mean to hijack the thread and get carried away. But sometimes it's such easy pickin's.

[bid_time]

I think we have a real live example of a Low Information Voter! Up until now I thought it was impossible for them to exist. No one could be that dumb.

[Ray___June]

spoon059 wrote:

Ray & June wrote:

Powerdude wrote:
What economic recovery?

Oh wait! You mean to say Reagans "trickle down theory" doesn't work?

Lets see how much spare money you have to buy a new truck and RV when Obama redistributes your money. At least Reagan allowed you to keep what you earned... Obama is punishing you for having the audacity to push yourself and excel.

Punishing you? If you make over $250K (or $300K as a couple) then you have to pay 4.6% higher taxes on that amount over the max. Otherwise the only tax increase under President Obama was a increase from 15% to 23.8% on capitol gains and dividends. 3.8% of that increase is to help pay for the ACA (Obamacare).

If you want to blame President Obama for higher taxes, maybe you should also blame him for gas under $3.00/gallon, highest domestic oil production in history, imported oil down by 33% and the stock market at record breaking levels. Let's blame him for everything, OK!

Turn off Fox Noise and study the issues. Google is your friend.

[Francesca_Knowl]

spoon059 wrote:

Ray & June wrote:

Powerdude wrote:
What economic recovery?

Oh wait! You mean to say Reagans "trickle down theory" doesn't work?

Lets see how much spare money you have to buy a new truck and RV when Obama redistributes your money. At least Reagan allowed you to keep what you earned... Obama is punishing you for having the audacity to push yourself and excel.

I blame the Ford administration.

But only because Chevy's never been elected.

[bmanning]

Great Googley-Moogley another thread gone political...

Right now, somewhere in a parellel universe, there's a website devoted to political discourse in which a thread just morphed into a discussion about tow vehicles.

[spoon059]

Ray & June wrote:

Powerdude wrote:
What economic recovery?

Oh wait! You mean to say Reagans "trickle down theory" doesn't work?

Lets see how much spare money you have to buy a new truck and RV when Obama redistributes your money. At least Reagan allowed you to keep what you earned... Obama is punishing you for having the audacity to push yourself and excel.

[Ray___June]

Powerdude wrote:
What economic recovery?

Oh wait! You mean to say Reagans "trickle down theory" doesn't work?

[monkey44]

spooon059
You hit it right on the head. Dealers and manufacturers upgrade the 'fluff' and charge (IMO) more than it's worth. Fancy this, fancy that, and required upgrades to get one specific item has always been a problem for those of us who just want a TRUCK ... trucks once just did work, had a purpose beyond 'sissy comfort' ...

Can say one thing about the 2003 GMC we're driving, almost every repair in more than 210k miles has been ELECTRONIC component. Brakes and tires, of course, and things that wear out. But the only functional components were electronic controls.

At the price of trucks, we should be able to order exactly what we want, not add five expensive items we don't want to get one we do. And, right again, as long as 'we' keep buying $60k and $70k truck, that's what will show up at the dealers.

It also seem, to me at least, the 'inventory' always has a lot of 'fluff' items, and less real functional items. We now "Need" a GPS? Why? Did we all forget how to read a real map? And who in their right mind thinks a truck needs POSH LEATHER seats ...

Real maps have good info and illustrate other things besides the one address, and you can 'see things in context', see the surrounding areas that may impact where you're headed and how you get there. How many times did you see something 'extra' near where you're headed, make a side trip, and say, "Boy, sure glad we saw that on the map!"

We have no problem with a business making a profit, but don't force me to buy something I don't want, in order to sell me something I do.

[spoon059]

Consider what is "standard now". AC, air bags, ABS, bigger brakes, bigger wheels, bigger tires, more sheet metal, more complicated computers, more complicated emissions control systems, better fuel economy because of more complex engines.

Cost of vehicles has greatly outscaled our average wage growth, but I would argue we are getting more vehicle for the money than even 10 years ago. Its hard to compare vehicles over 10 yeas because of the changes. Its easier to compare a can of Coke, something that is generally the same product that it was 10 years ago.

If I could have a wish, it would be for "better" stripped down trucks and more features on those trucks.

For example, Toyota will put their 5.7 engine in their base model work truck. GM will only put their 6.2 engine in the top of the line 1500. When I was looking for my current half ton, I wanted/needed the larger engine, but wasn't willing to pay for the GM top of the line trim. The largest engine in a GM product I could afford was the rather anemic 5.3 of the time.

Another example, work trucks are usually BARE BONES trucks. I don't need a ton of gadgets and gizmos... its a truck. My bride would not let me buy a work truck with manual windows and a vinyl floor. I wish that manufacturers would perhaps provide a slightly upgraded work truck version that had comfortable seats, carpeted floors and a few creature comforts (AC, power windows/locks, cruise control, radio, etc)

Truck prices are as high as they are because consumers are willing to pay the price. Capitalism at its best. If people stopped paying $75K for a truck, they would stop building them with so much******in them. Look around at the RV park next time... see how many top of the line trucks you see pulling top of the line RV's. If people are willing to spend the money, the CEO's are going to be willing to take it from you.

I wish I had the disposable income to spend $70K for a truck and $100K for a nice 5er... but I doubt I ever will.

[Dayle1]

me1magoo wrote:
Everything with a diesel engine has jumped ridiculously in the last few years due to EPA regulations requiring so much more equipment (R&D and materials to control emissions). DPF, DEF systems, etc, etc are not easy to design nor are the materials cheap or easy to build. I work with construction equipment. 2 years ago and new backhoe cost about $45k, last year $48k, this year $60k. A new dozer- 2 years ago $55k, last year $59k, this year $75k. A new 50,000 lb excavator- 2 years ago $135k, last year $140k, this year $165k. So new trucks going up from $40k to $55k in the last three or four years makes complete sense to me. DPF systems and DEF treatment costs a LOT of money and there is no one to thank for that more than our federal government EPA making the restrictions tighter and tighter (not that we don't need emissions standards, but they are the ones forcing the manufacturers to come up with "new" ideas).

I can believe that construction equipment diesel technology was out of date with major costs increases in the last few years. Also sales volume might results in huge price increases. But the big 3 have been on a diesel improvement path for many years and not everything dictated by emissions (Cummins noise level for example). Anyway, my 10 year price increase of 28% is Duramax to Duramax. I shopped aggressively for both prices, maybe too many buyers are too quick to just accept thru the roof pricing on new trucks.

[john_bet]

Plus all the computer time and engineering time needed to get these engines up to current hp/tq ratings.

[me1magoo]

Everything with a diesel engine has jumped ridiculously in the last few years due to EPA regulations requiring so much more equipment (R&D and materials to control emissions). DPF, DEF systems, etc, etc are not easy to design nor are the materials cheap or easy to build. I work with construction equipment. 2 years ago and new backhoe cost about $45k, last year $48k, this year $60k. A new dozer- 2 years ago $55k, last year $59k, this year $75k. A new 50,000 lb excavator- 2 years ago $135k, last year $140k, this year $165k. So new trucks going up from $40k to $55k in the last three or four years makes complete sense to me. DPF systems and DEF treatment costs a LOT of money and there is no one to thank for that more than our federal government EPA making the restrictions tighter and tighter (not that we don't need emissions standards, but they are the ones forcing the manufacturers to come up with "new" ideas).

[fla-gypsy]

rexlion wrote:

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.

If you order a truck to your specs you can control the fluff greatly.