Pricing shock

[calgator73]

Bought my 20 AT4 Carbon pro for 62k (66k MSRP) in August of 20.  Optioned out the exact truck I have and it's almost 81K for a 23.  wtf this is crazy.

[BigBadSierra]

My 22 increased in price by $8700 from the time I ordered/purchased it in February  till this December.

[briansol]

Prices are crazy.  They lure you in with 'starting at $39,000' and by the time you have a truck configured that you want to drive, it's 80+k.   

Some of the Tundra's i spec'ed hit 90s!   it's insane.

 

I ended up HAVING to buy a used truck off-lease to be able to afford it.   Not sure we'll have many 'new' trucks coming off inventory to buy a few years old.

 

Even leases i looked at were like 7k down, 1400 a month for 3 years.   insanity.

Edited January 6, 2023 by briansol

[Denali_1500]

I dont think it is any different than to think

 

In 2003 my Chev Silverado was $42000 with 6.0L and fully loaded as they come in 2003. Sold for $3000 in march 2020.

 

In 2000 my house was $150,000 on an acre of dirt. No plans to sell, paid off now.

 

Today, my 2023 GMC Denali with Carbon Pro bed and loaded to an Ultimate spec was $84000

 

My house today if I brought it on the market as is would be $475,000

 

So if you buy the best today, expect to pay the high price of time and inflation. 

[Yotaman]

As long as ya’ll keep buying they will keep raising to see how far you will go.

if only people who need a vehicle bought for a few weeks you would see what they are really worth.

 

Yotaman

[BIGDOGx]

Give it a year and they will be back to putting 15-20k on the hoods, the good times are about to end for dealers. A bigger problem though is they are about to end for all of us too.

Edited January 6, 2023 by BIGDOGx

[Wiggums]

Same here, I bought my new 2022 Ford F-150 for $62K ($71K MSRP) and it's now $81K.

The biggest reason why prices are going up is because of interest rates.

 

Nobody has $500,000 for a house, but most people can do $3,000 a month.

 

As long as people can still afford it, prices will go up. We really shouldn't have lowered the interest rates, that's technically free money and can cause inflation.

[CamGTP]

They also raised the prices pretty damn high so that when they do maybe someday put 10K off MSRP on the hood you just think you are getting a deal.

 

Their overall cost never actually went up 8-10k, they just did the price increase because they can.

[diyer2]

Price gouging is rampant. A part for our boiler that I was going to buy and keep for emergencies but didn't buy has now doubled in price. 

I'm into quality stereo equipment, love my music. Same thing. It hasn't doubled but prices are higher on new and used gear.

Covid created a supply shortage that has led to price gouging.  

  

[Amcguy1970]

14 hours ago, CamGTP said:

They also raised the prices pretty damn high so that when they do maybe someday put 10K off MSRP on the hood you just think you are getting a deal.

 

Their overall cost never actually went up 8-10k, they just did the price increase because they can.

 

Have you been looking at anything with the economy the last 3 years? Material and energy costs, supply chains and labor costs/staffing... They didn't just raise the prices because they could and wanted to, much of their manufacturing costs went up and they did to keep margins mostly intact. Honestly many things doubled in price at the peak or more, they probably could have realistically raised it more with numbers to support it I bet if they were trying to keep the Cost of Production the same. 

 

From worker shortages and having to pay them more for retention and hiring (that is increased Labor right there which is always one of the companies largest expenses and translates to their SG&A costs), then you have increased transportation costs from shortages, covering loses from down time from covid and worker shortages, materials have gone up a ton (steel was way higher than pre-covid from late 2020 through 2021 and even with the drop is higher than pre-covid); and so many other factors. Let's not forget the wasted costs for Covid specific items they bought like masks, dividers, testing, labels/markings/posters, vaccines and sanitizer/cleaners; all of which everyone in the world was trying to buy at that time. So yes, their actual costs went up. 8-10k per vehicle I don't know, I haven't been on the production finance side of a company yet, only the warranty side of a large truck manufacturer. 

 

Now profits were up a ton as were margins (mostly tied to not selling as much with reduced supply and higher demand) so they could have easily reigned that in to reduce the price increases; but they were hurting from low sales and other factors so they took what they could get to avoid sunk costs from having to buy at the peak materials and all the other factors. Factor in economists and the news mentioning a recession (though it isn't looking like it will be bad even though some sour pusses want it to crash) they have to save money and build up reserves and cash on hand to cover a bad period. Contracts are negotiated well in advanced, so if things change and money slows significantly, they have to cover those contracts or write them off and take a loss. 

 

Are vehicles too high, yes, but it isn't just the companies, it is the consumers. Look at who are buying most of these trucks these days. Most of them are just box chckers that have zero use for a truck other than to pad their suburban image; and they want all the luxury options they can get that the German luxury brands offer they had in their prior vehicle they traded in. Unfortunately, those costs to develop the 15" touch screen with HUD, massaging seats, massive sunroofs and torture test the 20" wheels off road (seriously, how larger wheels are even offered on an off road package is beyond me) get passed through the lineup; and in turn you see the base models pricing out workers who use these trucks for their business and livelihood. So if you want to put most the blame on someone, put it on the guy driving the Ultimate Platinum Carbon Laramie that won't see any dirt or bed work let alone having anything hanging off the pristine tow ball, they are a hefty reason your LT went up 10k and Tim the landscaper has to buy a used and who knows how abused truck for his landscaping business. 

 

On buying used trucks, seriously, part of the reason I don't ever want to buy a used truck is what some people on here do. I want my truck to be reliable for me and for my business if I had one; but if the guy before me tuned his truck, put on spacers for his massive wheels and tires to run around on with large spacer lift, that isn't going to be reliable and trouble free for a work truck or myself. I want to buy new and have a warranty and know it wasn't messed up by some uninformed yahoo reading what to do and wire into his truck on the internet. 

 

That was quite the rant from your one sentence, but hopefully it helps shine some light on things and informs some people on here. 

 

Tyler

[diyer2]

The new - used debate again. I understand the personal preference for new but............ 

As far as used, I have bought used for over 50 years, had a business that required a truck also. Not one bad vehicle. So maybe being smart enough to avoid buying used problem vehicles does apply. 

Same thing buying used anything, save money but you have to know what you're doing.

[Jus Cruisin]

Trade values up along with MSRP so I look at it as a wash. I'm fixing to replace my 2021 F150 Platinum 4X4 Powerboost with a 2023 GMC Sierra 1500 Denali Ultimate this spring if it can be built. All I care about is the difference #. That's what I need to write a check for. Ya can't take it with you when you check out. 

Edited January 8, 2023 by Jus Cruisin

[KARNUT]

I can understand the desire to drive a truck, I love my truck. I had to have one for work. I just don’t understand how people pay so much for trucks just to drive. I like little SUVs and cars too. I have one of each, even a sports car. The accumulation over the years of my vehicles didn’t cost as much as a reasonably option full size truck at today’s prices. My last new 2014 Texas edition truck sticker for 45K. I paid 27K at end of the year discount. Stop playing so much! The prices will come down. They are cash cows for the manufacturers. Nobody loves vehicles more than me. In a comfortable driver’s seat it doesn’t matter what vehicle it is. Why pay so much if you don’t need the hole in the back? I rather have a CPO car or mid size SUV and a used old truck. Then pay 50-60K for a new truck. I can afford it, that’s not the point. Of course people don’t care about wasting money, Starbucks proves that. 

[GN2018]

This hit me the other day.  I was cleaning and came across my sticker.  I bought the truck in March of 2021. Sticker was $62K.  I bought it for $54K.  I’m guessing you couldn’t buy a Denali for less than sticker today and I’m sure the sticker has gone up in the roughly two years I’ve owned the truck.  I doubt the current Denali can be had for less than $70K.  Amazing.

 

Since about 2005, I leased cars and changed cars ever two years.  Even in retirement, I flipped my rides every two years.  This will be the first vehicle in many years that I will drive many years.  Given the low mileage I drive now and my age 62, this could easily be my last truck.  They’ve basically priced me out of changing vehicles just because I like new vehicles.  Oh well, it was fun while it lasted. Also, at least I ended up with a really nice truck to drive for quite awhile (‘21 Denali).  I’m glad I upgraded from my ‘18 Silverado when I did.  It was right before the crap hit the fan.  

[Cardsfan300]

I am so glad I got my 21 trail boss in january of 21. Traded in my 2018 Z71, broke even, and out the door for 54k on a 21 LT trail boss, leather, sunroof, bedliner, running boards etc. The same truck now, is easily 63-65k before any rebates.