The price of new trucks is beyond comprehension!

[BobsYourUncle]

It was 42 years ago today, seems so long ago, yet still a strong memory in my head, a milestone I reached in my humble beginnings into the home renovation industry building solariums and such.

Yes, it was on this day, October ten, nineteen seventy eight when I had been only 4 years into my lifetime career when I worked my way to being able to purchase my first brand new truck!

Yup, 10-10-78 I drove off the lot of Phillips Chev - Olds in Penticton BC driving my nice shiny new 78 Chev 3/4 Ton Camper Special.

As I pulled out of the lot and turned left on to Westminster Ave and headed east towards home, I though I had lost my marbles, that I am a total idiot.

Who in their right mind would pay $7714. For a new truck. All taxes, fees, dealer prep and all the rest of the junk in came to $8,109.70 out the door...... Bob, you are out of your mind! I kept saying to myself. Financed it on the never never plan I did. How will I ever pay for it? I was barely 24 years old.

It was a great truck, I had it for 26 years and about 527,000K on the odometer when I retired it, still in decent shape.

Hmmmmm......

42 years later, my 2007 truck in sig is getting worn out. 408,800K on the clock and I am eyeing the shiny new trucks on the lot.

92 grand $$$$$$$ for something similar with a few more bells and whistles.

No, just no! That's what, about a dozen times the price I paid back then?
Gosh how can they justify that?

Wow! Just wow. Amazing how expensive pickups have become. All these fancy gizzmobops they have, someone has to pay for all that I guess..

Guess I'll just keep fixing what I have. It was $1423.77 yesterday for a water pump and a U-joint. Expensive!

Oh well, that's life! 🙂

My story of the day.

[4x4ord]

^^^^ Wow. That would put a 2016 loaded up diesel Ram Laramie Limited at about 30k now. That sounds like quite a buy. Or did the first buyer pay way too much?

[samhain7]

Funny. I went from buying new to recently buying used
Got a 16 for 40,000 less than the guy who bought it new.
That said, I did see 2020 Ram 2500 fully loaded for $102,000!!!

[Grit_dog]

4x4ord wrote:
^^^^ I agree with you fellas that buying a new truck every few years is not wise if you’re wanting to save money. I think if I was wanting to save money I wouldn’t buy new in the first place. I would find an old well looked after truck and run it for 5 or 6 years, sell it and do it again.

You n Lantley are both correct imo.
And especially the buying new part you mentioned. Also where and when you buy is a consideration for cost.....if you’re ultimately out to save the most money or most bang for your buck.

[blofgren]

colliehauler wrote:
Lantley I agree with you 20 years or 300k miles. I put my truck money into investments instead of depreciating assets.

Lantley- 4x4's example would be more then a 17k difference if you figure the return on interest on all the funds spent. In my case 100k returns more then enough money to cover any repairs with a considerable amount left over. Then you have to figure sales tax on all those vehicles (here sales tax is 9.25 percent). Higher insurance rates. Here we have personal property tax each year which is higher the newer the vehicle with maximum devaluation after ten years.

My sister trades every couple of years, her last GMC Canyon had 15k miles when traded. At her age why not they have worked a lifetime and have the funds to do so.

Now if I had a business that I could write the expense of the truck off then I would take advantage and always drive new.

The 12% sales tax here in BC throws a major wrench into this plan as well. I used to trade my trucks every few years as well but I'm now approaching the age where I'm starting to concentrate more on retirement preparation and that includes keeping vehicles for much longer.

[blofgren]

4x4ord wrote:

blofgren wrote:

4x4ord wrote:
The top of the line trim package is something I find fairly easy to justify. I’m looking at pricing on a new Ram and struggle with paying $2500 to upgrade from the regular Cummins to the high output. Then they want $1500 for adding air ride.

I'm surprised to hear that the HO Cummins is that much more. Does that include the Aisin transmission?

A buddy of mine just bought a 2020 Ram 3500 Megacab Limited with Aisin and air ride; listed at $102k and I believe he got it for around $80k. I wanted to kiss my 2013 after hearing that! :B

Yep that includes the Aisin. It is based on the Canadian price list. The regular Cummins/68rfe is a $9500 option and the Aisin HO Cummins is an additional $2500. I think it would be very seldom that I would even notice the additional power. Seems like most of the high end trucks on the lots are ordered in with the HO.

So what is the total price you being quoted?

[4x4ord]

^^^^ I agree with you fellas that buying a new truck every few years is not wise if you’re wanting to save money. I think if I was wanting to save money I wouldn’t buy new in the first place. I would find an old well looked after truck and run it for 5 or 6 years, sell it and do it again.

[colliehauler]

Lantley I agree with you 20 years or 300k miles. I put my truck money into investments instead of depreciating assets.

Lantley- 4x4's example would be more then a 17k difference if you figure the return on interest on all the funds spent. In my case 100k returns more then enough money to cover any repairs with a considerable amount left over. Then you have to figure sales tax on all those vehicles (here sales tax is 9.25 percent). Higher insurance rates. Here we have personal property tax each year which is higher the newer the vehicle with maximum devaluation after ten years.

My sister trades every couple of years, her last GMC Canyon had 15k miles when traded. At her age why not they have worked a lifetime and have the funds to do so.

Now if I had a business that I could write the expense of the truck off then I would take advantage and always drive new.

[Lantley]

4x4ord wrote:

SDcampowneroperator wrote:


Resisting the bug for new comes down to need, or reliability. Needs change, reliability is relative. Where once upon a time a truck with as low as 80k was done ( circa 1960s) , we now can depend on 250 - 400k mi. even more with dependability. Shouldnt that be that a factor in your decision to keep, trade or sell?

If a truck is looked after it could easily last 300,000 miles or 20 years but at the end of that period it is not worth much anymore and buying a new replacement feels like quite a blow. If I had waited till now to replace my 03 Duramax I’d be dishing out 75k difference to own a new truck today. Instead I dished out 35k difference in 2011; 25k difference in 2016; 14k in 2017 and now I expect to have to cough up another 25k to be into a new truck again. So instead of spending 75k replacing my truck once in 17 years it will cost me 99k. My cost of tires, maintenance and repairs over that 17 years was minimal which may have saved me a few hundred dollars per year, so after all, trading may have cost me $1000 per year more than it would have had I kept my 03 till now.

I like your analysis a really interesting way to look at it.
However I don't see 17K as being negligible. 17K is still a lot of money. Sure you can rationalize it as only 1000/year I get it.
But $17K is a substantial amount.
While I do enjoy a new truck. I'm a keep it until 300K kind of guy.
I can't see trading in a 3 year old truck that has been barely used to go new. The 3 year old truck has way to much life and value in it to walk away from. The wow/performance/glamour factor between brand new and 3 years old isn't very much.
When I traded in my 07 Duramax with 300K on it to buy my 2019 Duramax there was plenty of newness to celebrate!! LOL :B

[4x4ord]

SDcampowneroperator wrote:


Resisting the bug for new comes down to need, or reliability. Needs change, reliability is relative. Where once upon a time a truck with as low as 80k was done ( circa 1960s) , we now can depend on 250 - 400k mi. even more with dependability. Shouldnt that be that a factor in your decision to keep, trade or sell?

If a truck is looked after it could easily last 300,000 miles or 20 years but at the end of that period it is not worth much anymore and buying a new replacement feels like quite a blow. If I had waited till now to replace my 03 Duramax I’d be dishing out 75k difference to own a new truck today. Instead I dished out 35k difference in 2011; 25k difference in 2016; 14k in 2017 and now I expect to have to cough up another 25k to be into a new truck again. So instead of spending 75k replacing my truck once in 17 years it will cost me 99k. My cost of tires, maintenance and repairs over that 17 years was minimal which may have saved me a few hundred dollars per year, so after all, trading may have cost me $1000 per year more than it would have had I kept my 03 till now.

[BobsYourUncle]

Crespro wrote:
Hello,

Interesting thread. I have taught Dave Ramsey FPU for ten years. He has good advice on personal finances.

Interesting you mention teaching Dave Ramsey FPU. I used to listen with great fascination to his spot on Siruis years ago. Channel 151? I forget now. I learned a lot, even though I didnt always agree with some concepts, he had the credentials, so I knew he was right and I was wrong. Wonderful teacher!
And he was very much against leasing a vehicle.

Now, do you remember what he called a lease?

[Crespro]

Hello,

Interesting thread. I have taught Dave Ramsey FPU for ten years. He has good advice on personal finances. We have paid cash for all vehicles since 1992.

We bought the new fifth wheel and gas F250 this year. I ordered and got a good price by flying to Houston, picking up the F250 there and the fifth wheel on the way back in Las Cruces. This is probably the last RV (three prior class A RVs, last one a 40DP with a Cummins 400ISL) and most likely the final truck.

I like the gas engine. About 80% DD and 20% towing. Yes, it does rev higher on hills towing, but it is rated for 26K GCWR and does fine at 21K. The TFLTruck F250 pulled 16K up the IKE (to 11,000 feet at Eisenhower Pass). My truck rated the top of the gassers for TFL on the IKE. I pull 14K up and down the coast of CA and it does fine.

If you tow heavy and often, you should have a diesel. If you are like me and tow low altitude and a reasonable load with a ten speed tranny and 4.30 rear axle, you will be fine with a gasser.

Best,

Crespro

[SDcampowneroper]

rate of inflation plus new gadgets like cameras, power mirrors and everything, plus govt safety like airbags. Take them all into consideration, to buy a basic truck like 40 years ago the new one is $ less and will last longer, resale much better.
My '07 classic chevy LT trim ext. cab 8' bed lbz diesel listed $53k in '07' bought $38k cash. Still resales privately for near 20k with 180000 mi.
Thats less than $ 1500/ yr depriciation adjusted for inflation. Am not planning to sell it, but the new bug is biting.

I do have a different philosophy and approach to finance and vehicles. In business, my accountant advises when to sell, replace.

Resisting the bug for new comes down to need, or reliability. Needs change, reliability is relative. Where once upon a time a truck with as low as 80k was done ( circa 1960s) , we now can depend on 250 - 400k mi. even more with dependability. Shouldnt that be that a factor in your decision to keep, trade or sell?
My truck has not been without off warranty issues, An idler pulley, a couple of glow plugs, thermostats, blown tranny oil line. I pulled the wrenches at home.
In 13 years its been to Chevy once, 2 years ago to update the computer when it repeatedly showed a code for excessive EGR (402) It was a fault in the after turbo exhaust temp sensor. $32 part I changed it.

Searching for a new truck equal locally or better shows price icash price $62-66 k After negotiation, that should be around $ 50-52 k Never have I paid or will pay ' documentation fee, extended warantee, or any other dealer add on. Do that on your own or with aftermarket suppliers.

State your price, stand by it. Walk Run if you have to.

[4x4ord]

blofgren wrote:

4x4ord wrote:
The top of the line trim package is something I find fairly easy to justify. I’m looking at pricing on a new Ram and struggle with paying $2500 to upgrade from the regular Cummins to the high output. Then they want $1500 for adding air ride.

I'm surprised to hear that the HO Cummins is that much more. Does that include the Aisin transmission?

A buddy of mine just bought a 2020 Ram 3500 Megacab Limited with Aisin and air ride; listed at $102k and I believe he got it for around $80k. I wanted to kiss my 2013 after hearing that! :B

Yep that includes the Aisin. It is based on the Canadian price list. The regular Cummins/68rfe is a $9500 option and the Aisin HO Cummins is an additional $2500. I think it would be very seldom that I would even notice the additional power. Seems like most of the high end trucks on the lots are ordered in with the HO.

[Super_Dave]

Truck + RV + Boat = a lifetime of hard work to get there. Truck was $40k 14 years ago, RV was $60k 2 years ago and the new boat was $80k 2 months ago.

[blofgren]

4x4ord wrote:
The top of the line trim package is something I find fairly easy to justify. I’m looking at pricing on a new Ram and struggle with paying $2500 to upgrade from the regular Cummins to the high output. Then they want $1500 for adding air ride.

I'm surprised to hear that the HO Cummins is that much more. Does that include the Aisin transmission?

A buddy of mine just bought a 2020 Ram 3500 Megacab Limited with Aisin and air ride; listed at $102k and I believe he got it for around $80k. I wanted to kiss my 2013 after hearing that! :B