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]

Mfgrs always have R&D costs as a factor, so changing a regulation doesn't necessarily increase costs, just puts those R&D costs into different areas that need it.

It's a fact that R&D will always develop toward increased gas mileage because that will help sell trucks ... so, just because a regulation states a Mfgr has to do exactly what its already doing doesn't make the costs rise.

Not like the feds make a law that changes those regulations overnight - its usually a ten-year window for those kinds of change (cleaner air, for example) - regulations don't exactly sneak up on truck designers.

[donn0128]

Add in the outrageous government regulations imposed on the auto makers that have taken effect in the last 10 years or so and it is quite understandable how the prices have jumped so dramatically. And this is only the start.