why are new trucks so expensive?

30k 40k 50k+??????

 

Supply, and demand.

 

Buy used, pay cash

 

In my opinion...
Ford made a bunch of luxury trucks that drew their pricing up. They helped to change the image from a utilitarian vehicle (no frills and cheap) to a daily driver for people who want to drive something "manly". 90% of trucks on the road aren't driven by people who need a truck, the rare occasion that they do they would be better off to rent one for the day and not daily a truck. Other manufacturers saw this and said yes, we will follow course.

Add to that, people want fancy stuff in their vehicles. I love a bare bones truck, I miss rolling windows by hand. Others want a 12" touch screen with front and rear cameras, side view mirrors that blink when you shouldn't change lanes, heated seats, leather seats, power outlets in the bed, wifi, Bluetooth, 20" wheels, special edition stickers, etc. They're willing to pay for those things, so the price goes up.

I couldn't see myself spending what new trucks cost on a truck. I would rather have a sweet sports car for less and buy a used beater truck for when I need a truck. Then again I bought my truck used in 2008 for $13k and could sell it for that any day now.

 

Compared to how long ago? Today's trucks have more technology - a LOT more technology. You know all those readings from the OBD-II port? The vast majority of those readings come from sensors. Maybe the signals come through the ECU first, but there are sensors. And that's before you even get to the technology that the average driver sees, such as the GPS, user settings, and everything else that's in the head unit. THEN, there are all of the safety features, which all cost money to add. I remember when the only safety features on new cars were brakes and seatbelts. I guess you could call turn signals safety features, but that's pushing it.

 

Inflation and rising costs

 

Lots of reasons.
Some already mentioned all these fancy features many now are required by the gubmnet.

Another big factor is ridiculous financing options. 5-8 year financing on a vehicle.
Lots and lots of folks driving vehicles they can’t afford.

 

Yep. Seems to me the “how dare Toyota build a $45k truck that doesn’t tell me when it’s ok to change lanes” mentality can be traced back to those luxury trucks Ford started building.

Remember the first super high-end Lincoln truck? When I saw that thing, my first thought was, “oh look, a truck you can’t use.”

 

Can I get an

 

Because there is a Market for them.
If they didnt sell they would not make them.

 

Oh yes, the blackwood I believe, the brother of the Lincoln Navigator.

 

Lots of reasons they've gone up, but you should consider inflation. There were first gens that MSRP'd for 30k plus before options. Here's a first gen with pretty much all the options for $40k back in 2004.

For instance, assuming an average inflation rate of 2.16% per year, that $39,927 in 2004 would be $57,424 today.

 

The bigger question is why are the domestic auto makers not profitable even though their prices are so high.

 

I don't know if it is still the case but I recall hearing that a decent percentage of the new vehicle cost was going to retirement of older employees. I can't recall if it was Freakonomics, SYSK, or 99% Invisible where I heard that.

 

You'll be burned on interest for starters. Add to that how many people on this forum keep their trucks for more than 84 months? I see revolving doors of members here saying they're trading a 2019 for a 2021. If they are paying cash thats amazing, but if they're on a continuous payment plan they're likely over their head.

I like to follow some of Dave Ramsey practices(the ones that are reasonable). I make decent money and even though I can afford the monthly payment, the price of the vehicle and finance is too high compared to my annual salary. I'm not willing to take on that sort of debt for a truck, its almost as bad as paying alimony. In my mind I cannot afford it. The only vehicle I ever financed was my truck, 5 year loan paid off in 3. All other cars I bought used for cash.

 

Yeah, I bought new, paid cash in this case and I felt a lot better than what was available to me on the used market. $3000 less than new with 40k miles and 3 years old. GTFO with that shit.

 

The answer to that is well known. It's been published in studies and has been in the news. When the domestics were doing fairly well, they started negotiating with unions. The union kept winning year after year until the union workers got ridiculous benefits such as full company paid health insurance for life, very high pensions, etc. The auto companies weren't the only ones to do this but they made the news more. Once all the retirement bennies are paid, there is no more profit left for the company. The company was always thinking short term, ignoring the accumulated costs of all those bennies.

 

Steel is about double what it was two years ago. Might be a factor since there is some steel in a truck.

 

I'm of a similar mindset, if I can't pay cash then it's almost always an immediate "nope can't afford it" and I make decent bucks. Different strokes for different folks, I have a friend who finances literally everything. Ironically he owns much newer vehicles than me, despite me making probably double what he does. His life his money, besides my house I have zero debt and that's how I like it.

 

Thank you for telling the truth. I wanted to say it.

 

Well OP unfortunately time flies and over time, inflation occurs. I know, it seems like 1987 was just a few years ago and you could buy a nice new Ford for about 12 grand. But what was minimum wage back then, something like $3.85?? Now add improvements to longevity, safety, convenience, comfort, etc. Not such a bad deal at 40k today. Key is to take advantage of cheap or free financing.

 

See above about inflation.... the prices haven't risen as much as you would think just looking at absolute numbers from 20 years ago. When you add up all the features, etc, really you are getting a better bang for your buck today than ever before. And for the record I definitely appreciate simple and reliable in many cases, trucks included.

And in this market, with these interest rates... paying cash is just not a good use of money. To me it's the opposite, if you can't afford the payments you can't afford it. I'll finance as much as they will give me at 1-3% and keep my equity in the market, making in recent years 30+%.

 

Blame 20 years of 0% interest rates.

 

Wait until we see real inflation again, these prices are gonna look cheap

 

bingo. These trucks will be rental only when you see the inflation coming in near future

 

Considering most of the domestic trucks are often in the 60',70's and 80's, the Tundras are a real bargain IMO. The few creature comforts on the Tundras are all I need, to me the relative comfort extravagance of the domestics and attempts at over engineering don't have any interest for me.

 

We are in the same boat

 

Hey I'll join you in there, that boat floats awful nice it's actually my third time in it, but it seems to be sticking this time.

 

that new car smell always wears out faster than the payments ​