New Vehicle Prices
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Senior Member
Joined: Dec 1969
Posts: 346
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From: Dickinson, TX USA
New Vehicle Prices
A little background... When I was a kid in the mid 80s, my dad bought a brand new Pontiac passenger car (luxury model) with V-8, auto, and all the options for about $12,500. Nowadays, a similarly equipped car costs upwards of $20,000.
The truck I'd like (new SuperDuty diesel) is around $32,000 to $40,000.
Seems to me that auto makers have made the decision to deliberately outpace inflation with most vehicles, charging excessive prices for vehicles. Why does a truck used for work need to cost upwards of $30k?
I won't even get into maintenance costs and the way dealers rip us off.
Bottom line, does anyone else feel vehicle prices are getting too high--and is there anything we can do about it? (Obviously, folks aren't going to stop buying new vehicles.)
If prices were increasing with inflation (assuming pay increases at rate of inflation) seems we wouldn't have a need for 7 year loans, doesn't it?
-Mike
The truck I'd like (new SuperDuty diesel) is around $32,000 to $40,000.
Seems to me that auto makers have made the decision to deliberately outpace inflation with most vehicles, charging excessive prices for vehicles. Why does a truck used for work need to cost upwards of $30k?
I won't even get into maintenance costs and the way dealers rip us off.
Bottom line, does anyone else feel vehicle prices are getting too high--and is there anything we can do about it? (Obviously, folks aren't going to stop buying new vehicles.)
If prices were increasing with inflation (assuming pay increases at rate of inflation) seems we wouldn't have a need for 7 year loans, doesn't it?
-Mike
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Joined: Jun 2002
Posts: 0
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Three things:
First, the solution is buy a Kia. Two for $16,000. What? You don't want it? Cheap trash you say? Exactly.
Second, people are paying it. Why make less money when you can make more? If Ford made no money, for example, would they have the money to fund projects like the Lightning?
Third, vehicles are more expensive for a variety of reasons. Emissions laws are tougher. Everything must have tons of expensive safety features. Extreme competition for "safety stars." Inflation. These things weren't so expensive in the eighties and meeting these needs costs money. Then, there are labor unions who increase manufacturer expenses through pay hikes which coincide with cost-of-living increases. The internet, which didn't really exist in 1987 and all the information it gives people and tells them to buy 'at invoice price'. Since that number has been released, invoice price has gone up. 10 year warranties are expensive. Higher quality demands from international competitors demand the purchase of more expensive materials. All of these numbers add up and somebody has to pay them.
I am a car salesman and this makes me bitter. There is not a lot of markup (MSRP minus invoice) so people think they are getting a deal but in truth the dealers are getting cut out of the profit picture. Or the gap is huge so people can negotiate down and feel they pulled a fast one on that wicked slimeball car salesman. That means no freebies, no discounts and poor service. And it also means a small paycheck for me.
First, the solution is buy a Kia. Two for $16,000. What? You don't want it? Cheap trash you say? Exactly.
Second, people are paying it. Why make less money when you can make more? If Ford made no money, for example, would they have the money to fund projects like the Lightning?
Third, vehicles are more expensive for a variety of reasons. Emissions laws are tougher. Everything must have tons of expensive safety features. Extreme competition for "safety stars." Inflation. These things weren't so expensive in the eighties and meeting these needs costs money. Then, there are labor unions who increase manufacturer expenses through pay hikes which coincide with cost-of-living increases. The internet, which didn't really exist in 1987 and all the information it gives people and tells them to buy 'at invoice price'. Since that number has been released, invoice price has gone up. 10 year warranties are expensive. Higher quality demands from international competitors demand the purchase of more expensive materials. All of these numbers add up and somebody has to pay them.
I am a car salesman and this makes me bitter. There is not a lot of markup (MSRP minus invoice) so people think they are getting a deal but in truth the dealers are getting cut out of the profit picture. Or the gap is huge so people can negotiate down and feel they pulled a fast one on that wicked slimeball car salesman. That means no freebies, no discounts and poor service. And it also means a small paycheck for me.
Last edited by Boozecans; Jun 18, 2002 at 04:57 PM.
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Joined: Apr 2000
Posts: 216
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From: Sumterville, Fl
Originally posted by Boozecans
Three things:
First, the solution is buy a Kia. Two for $16,000. What? You don't want it? Cheap trash you say? Exactly.
Second, people are paying it. Why make less money when you can make more? If Ford made no money, for example, would they have the money to fund projects like the Lightning?
Third, vehicles are more expensive for a variety of reasons. Emissions laws are tougher. Everything must have tons of expensive safety features. Extreme competition for "safety stars." Inflation. These things weren't so expensive in the eighties and meeting these needs costs money. Then, there are labor unions who increase manufacturer expenses through pay hikes which coincide with cost-of-living increases. The internet, which didn't really exist in 1987 and all the information it gives people and tells them to buy 'at invoice price'. Since that number has been released, invoice price has gone up. 10 year warranties are expensive. Higher quality demands from international competitors demand the purchase of more expensive materials. All of these numbers add up and somebody has to pay them.
I am a car salesman and this makes me bitter. There is not a lot of markup (MSRP minus invoice) so people think they are getting a deal but in truth the dealers are getting cut out of the profit picture. Or the gap is huge so people can negotiate down and feel they pulled a fast one on that wicked slimeball car salesman. That means no freebies, no discounts and poor service. And it also means a small paycheck for me.
Three things:
First, the solution is buy a Kia. Two for $16,000. What? You don't want it? Cheap trash you say? Exactly.
Second, people are paying it. Why make less money when you can make more? If Ford made no money, for example, would they have the money to fund projects like the Lightning?
Third, vehicles are more expensive for a variety of reasons. Emissions laws are tougher. Everything must have tons of expensive safety features. Extreme competition for "safety stars." Inflation. These things weren't so expensive in the eighties and meeting these needs costs money. Then, there are labor unions who increase manufacturer expenses through pay hikes which coincide with cost-of-living increases. The internet, which didn't really exist in 1987 and all the information it gives people and tells them to buy 'at invoice price'. Since that number has been released, invoice price has gone up. 10 year warranties are expensive. Higher quality demands from international competitors demand the purchase of more expensive materials. All of these numbers add up and somebody has to pay them.
I am a car salesman and this makes me bitter. There is not a lot of markup (MSRP minus invoice) so people think they are getting a deal but in truth the dealers are getting cut out of the profit picture. Or the gap is huge so people can negotiate down and feel they pulled a fast one on that wicked slimeball car salesman. That means no freebies, no discounts and poor service. And it also means a small paycheck for me.
Let's say you buy a 2002 F150 that has a Retail sticker of $28,000 the Factory invoice will be @25,200. If you figure in the options that the factory threw in at no cost if the dealer sold the truck for $300 over invoice then the profit so far would be $800.
Dealer Holdbacks which help offset the interest if the dealership takes out loans to pay for the vehicles. We'll call that $900.
Trade in 1996 F150 Tradein $8500 Retail $11000. $2500 more.
Financing $100 more profit
Tag and Title $50 more
Dealer installed options 85% profit.
Total $4350.
Salesman have earned this scrutiny by the public with questionable tactics and outright lies. My favorite one is "Were already giving you a $1000 rebate......if we take any more off the cost of truck we won't be making any money."
The only way to restore credibilty to dealers is a factory sponsored No Haggle price.
