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.

[Me_Again]

BurbMan wrote:
I just bought the truck in my sig this May for $37k with 81k miles on it. When it was new, the sticker on it was $63k. If you build/price a 2020 with the same features it's $70k.

That was a pretty good deal on the 2015! I would not give my 2015 away for that amount.

[Lynnmor]

pnichols wrote:


Of course The State of California keeps sending me enticing mailers offering to buy it off me for around $1000 so as to "get it off the road"

You live in a state that forcibly removes money from taxpayers and then hands it over to others causing more demand and higher prices on new trucks? How is this theft legal? Why do people live there?

[RetiredRealtorR]

And the saga continues. As long as Americans are willing to pay the crazy high prices, the manufacturers have no problem supplying their needs. Much like we are all willing to pay for poorly constructed RV's made of shoddy materials -- we don't resist, so the manufacturers keep them rolling off the assembly lines.

[4x4ord]

My SIL is still driving my old ‘93 GMC 6.5 turbo diesel cc 4x4. I think it handles and rides better than my 2017 Ford and it’s still a very nice looking truck. I’d like to see him get another 15 years out of that truck.

[pnichols]

Uuuugggggg! :S

This whole thread is what keeps me asking my mechanic how much longer can he keep my 1995 GMC Z71 4X4 running well and reliably. So far he says "no problem" on keeping my baby in relatively good shape.

Of course The State of California keeps sending me enticing mailers offering to buy it off me for around $1000 so as to "get it off the road" ... I haven't yet asked them to give me a newer GMC at an across-the-board trade as a replacement truck in order to "get my 1995 off the road".

I have no interest whatsoever in paying almost half what I have left on my home's mortgage for a new truck!!!!!

(Of course I could raid my IRA for a new truck, but then again dog food and reuse of disposable diapers in a rest home dump later in life isn't a very attractive alternative.)

[ShinerBock]

Dadoffourgirls wrote:
I think it all depends. I buy on the deals. I have done very well. My 2011 2500HD CC sold 4 years later for $3000 less than I paid. I got more for my CTS after a year than what I paid. I got $1600 more for my 2017 Malibu in June than I paid for it new. And if I wanted, I could have sold my Bolt EV in August for more than I paid. I do appreciate those that buy new vehicles.

Yeah, but not everyone gets GM employee pricing either. Not chastising either. I think it is great that you have that available to you. I can get Ford employee pricing as well and I used it when I bought my old F150, but they didn't make a truck in the HD/SD class that I would like to own when I bought my Ram.

[Stclairm]

Tell me about it! Looking at two right now, both are in the mid 40's and are 1500 series that aren't loaded up versions. Back in 2013, I bought a new F150 XLT crew cab 4x4 long bed 3.5 EB max tow and was choking about paying $38k.

[Dadoffourgirls]

I think it all depends. I buy on the deals. I have done very well. My 2011 2500HD CC sold 4 years later for $3000 less than I paid. I got more for my CTS after a year than what I paid. I got $1600 more for my 2017 Malibu in June than I paid for it new. And if I wanted, I could have sold my Bolt EV in August for more than I paid. I do appreciate those that buy new vehicles.

[4x4ord]

time2roll wrote:
If you buy a new vehicle today and you buy a new vehicle in 10 years you are set for 20 years. If you trade every 5 years you will have 4 new trucks in the same time frame.

I really think the first five years depreciation will be more than the second five years. And I think many are actually getting six, even seven year loans and if that is the case we are looking more in the 12 to 14 year trade in as far as I am concerned.

Read plenty of stories posted about trading in at 3 to 5 years over and over and I don't know how they do it except they must pull down more cash.

At the end of 20 years you have a ten year old vehicle one way vs a 5 year old the other. You need to make sure you start and stop your two scenarios at equal points .... so if you want to take it to 20 years then the best is end with a new truck in the garage at the end of 20 years... But why not just take it to 10 years ending with a new truck in the garage in both scenarios?

[time2roll]

If you buy a new vehicle today and you buy a new vehicle in 10 years you are set for 20 years. If you trade every 5 years you will have 4 new trucks in the same time frame.

I really think the first five years depreciation will be more than the second five years. And I think many are actually getting six, even seven year loans and if that is the case we are looking more in the 12 to 14 year trade in as far as I am concerned.

Read plenty of stories posted about trading in at 3 to 5 years over and over and I don't know how they do it except they must pull down more cash.

[4x4ord]

time2roll wrote:
If you keep the vehicle twice as long as the loan you should be fine.

I think if you do a little figuring you'll come to realize it's not going to make as much difference as what you might be thinking. No matter how you slice it if you buy an new vehicle today and another new vehicle 10 years from today it's going to cost you fairly similar dollars to buying a new vehicle today ..... trade it in 5 years and then trade again in 10 years.

[ShinerBock]

mkirsch wrote:
If everybody followed that advice and bought used, there would be no used cars to buy.

SOMEONE has to buy new vehicles so that there are used ones. Millionaires are only a tiny fraction of the population so if you're waiting for their discards, you'll be waiting a long long time.

Exactly! Expensive vehicles are a prime example of trickle down economics in both resale values and technology. Someone has to buy them in order for them to be less expensive for everyone else, and if the those people don't buy them then it won't exist. Research and developing new technology costs money, and if there were not people who paid these high prices for this new tech then it would never eventually become attainable to everyone else overtime. Hence the reason why luxury options of vehicles 10 years ago are standard today.

Tesla is actually a prime example of this as well. They needed wealthy investors and people to buy their vehicles at the beginning in order to have enough money to build the factories so their vehicles will cost less with mass production. Without those wealthy buyers and investors, other people would not be able to afford a Tesla and many of those factory workers would not have jobs.

[time2roll]

If you keep the vehicle twice as long as the loan you should be fine.

[BurbMan]

I just bought the truck in my sig this May for $37k with 81k miles on it. When it was new, the sticker on it was $63k. If you build/price a 2020 with the same features it's $70k.

Our 2500 Burb LT stickered at $46k when it was new in 2001, I bought it with <10 miles on the clock for $40k, kept it for 19 years and 185k miles. Saw a new Escalade EXT in our travels on the showroom floor at our local Cadillac/GMC dealer with a window sticker showing $102k. Who spends that for a GM SUV?

[4x4ord]

I think it costs me about $6000 per year to keep my truck relatively new. Part of that 6000 per year goes toward building some equity. So if I keep throwing $6k toward a truck every year in 10 years from now I might have a $95000 vehicle in my garage. If on the other hand I were to sell my current truck for 65k and buy a $15000 beater I could start an investment fund with $50k. If my $15000 beater happened to provide excellent service for 10 years and I was able to add $5k to my investment every year I could expect in 10 years to have a $5000 truck in the garage and $147,000 in my investment. (Assuming a 5% return on investment) So whether I drive a beater or a new truck for the next 10 years is not going to make much difference to my retirement. However, for someone in his 20s or 30s the math would become hugely different.