Financial Frippery

As the 2019s roll out, and each manufacturer tries to out perform the other (Gmc Denali has a transformer pickup bed made of carbon fiber with a tailgate that breaks down into steps with LEDs and a speaker system) I've noticed the new "norm" is 65k. Some list for 80k and I know incentives and sales drop the price, but at some point we have to pinch ourselves and do the math.

A 65k truck after taxes is around 70k at 3.10% is $1260 a month.

Now I know you can play with these numbers by trade in, money down, better rate, etc... But the amount of capital you'd need to knock this payment into any semblance of Earth orbit is terrifying.

Are the manufacturers building trucks for renters? Single no children folk? Doctors or attorneys?

I consider myself comfortably retired with supplemental incomes in California and I wouldn't drain equity, raid the kids college fund, borrow against retirements etc for such a long term depreciating "asset"

Who buys these things? Are they nuts? I'm asking a serious question here guys... Lol

 

Who buys them? People with a hell of alot more money than I. 3 - 4 year old Tundras with under 70,00kms on them are hovering around $40K here.

I bough a brand new 2011 GMC Sierra SLEin Nov 2011. Crew cab, 4x4, Z71 Off Road, tow package..basically every option except leather, sunroof and nav/backup cam/bose stereo.

I paid $38,200 out the door....

 

I'm with ya..$ 39,999 2016 Tundra CrewMax limited 4wd 21k

I'm not shelling out almost double... Holy crap.

 

I agree. New truck prices are ridiculous. You can by a house for that much in certain parts of the country.

 

I have always wondered this myself. Especially those that purchase a brand new boat to haul around behind their 70K truck.... I guess some people just don’t mind being in debt...

 

Right?! I'm not clowning on people's choices, and my hats off to the them if 1k a month is acceptable. I... Ahhh. Maybe I'm just old.

 

1. People with more money than brains
2. The look at me people
3. The people that have saved 1/2 their lives for a retirement vehicle
4. The E4 living in the barracks that has a 12 year note

No matter how it plays out, they build it, someone will buy it!

 

Those prices are getting stupid. There will be plenty of those that really cannot afford it but will make it happen because they want the newest shiniest truck. All logic for some will go out the window, got to have it. Foresee 10yr financing to make the notes more affordable.
For those who can afford, kudos to you! Those who cannot, I say Live and Learn and good luck!

 

We're getting old. I used to think 7-8 year car notes was nuts. Now it's the norm.
They need to accommodate, so they can sell.

 

Cheap gas = more truck demand; car dealers strike while market is hot.

If gas goes up to $4 or more, deep discounts and more reasonable prices will abound.

 

10 years.. Bwahahahah Imagine the interest and total cost.. Car sales will be more lucrative than real estate lmao

 

It's called the Jones'....

Plain and simple. These manufactures know American's by a GREAT percentage love debt and will swindle, claw and dig to get $$ and credit to sign the line. It's a drug, if you put a product out there and make people believe they can't live and function without it they will succumb to the desires. All of us could drive a rusty c10 pickup or pinto but we've been conditioned by these manufactures to drive their vehicles and give yourself status. There are a miniscule amount of us that do it for other reasons. At least mine is paid off in 13mo.

 

haven't heard about this transformer tailgate, so I looked it up, this thing is awesome! The real question is will it keep working once you take it off the showroom floor? probably not...
https://www.youtube.com/watch?v=KvaXZTK9eFc

 

https://smartasset.com/retirement/average-retirement-savings-are-you-normal

https://www.fool.com/investing/2017/10/01/why-half-of-americans-cant-come-up-with-400-in-an.aspx

I think it’s great. Let these fools pay for them and then buy it off them for a 50% discount 3 years later. Works every time.

 

I hear ya. I've been bitching about prices going thru the roof for the past decade or so. Too many bells and whistles on most of these things now. $70k for an F150 is not okay.

 

Imagine if somebody forgot to lock it and a dirt bag ran off with the tailgate... Big bucks!

 

yep the prices are crazy. I may get flamed but I don't understand how someone who just has kids or is going to have kids soon affords one of them, plus a new house and all the latest and greatest. what happens if you have an emergency and really need some cash?

I'm in my mid 50's and the older I get, the more I just sit there and shake my head thinking of the money I wasted over the years. the last Tundra lasted me 12 years and served me good.

take it from an older guy, you don't have to keep up with the Joneses. you'll thank me later when you have some cash in the bank.

 

Reasons for big price tags:
1) Inflation has hit us. The asset inflation process created by cheap ‘Fed Reserve’ money 10 years ago is in its final stages.

2) Real Wages have not grown with the ‘asset bubble’. This results in the ‘perceived’ disparity between truck cost and actual disposable income.

3) 2 income households and they aren’t having kids anymore. Thus, more money to spend on ‘stuff’ vs. kids.

4) Parents of adult children are funding their adult childrens habits. Buying them new homes/cars/etc because they can’t afford it. This results in real costs of things not being actually ‘realized’ by the adult children because they haven’t had to ‘earn’ it. (I see this on a weekly basis in my job).

5) Inflated stock market (see point #1)

6) His name shall not be mentioned but the ‘unaffordable healthcare act’ (WHICH IS REALLY A socialist TAX) is responsible for making my free market insurance costs increase (tax thru premium increases) thereby cutting into my disposable income. (Think making the same salary but less to spend because of the ocare tax bite reflected in your insurance increase every year). All businesses thereby must increase their costs to accomodate skyrocketing socialist care.

7) Raw Materials increase (see #1 again).

Conclusion: I was looking into a new 2018 Tundra purchase back in the early summer, but after seeing what the OP stated with crazy prices decided it was not feasible (cost benefit not doable). Its better to re-invest back into what you have if its working as its already paid for and the personal prop taxes won’t double whammy you.

The Section 179 rule (US Tax Code) is beneficial to business as it gives a 100% write off on depreciation the first year of purchase. Problem is you still have to earn/churn the money to make the payment. The dealers know about the tax code and bake it into their sale cost with the individual or the overall demand that its creating.

 

Not disagreeing with #6 but not sure how it equates to the higher vehicle prices.

 

I believe pricepoint has been pushed up over the decades by leasing tactics. It allows people to forego putting money towards equity or savings by spending their paychecks at vehicle rentals over long periods, basically. I would guess very few buy NEW daily drivers in full these days. Maybe more in the Toyota realm because they are reliable.

 

The health tax scam increases cost for business’. Businesses must then increase the final cost of their product (in this case a truck). The consumer (of the truck) has just financed government forced socialism.
Other scam results: Individuals health insurance increase results in less disposable income to buy more expensive truck. Government benefits from higher tax income revenue due to higher inflated costs of goods sold.

 

I just bought my 2018 back in June. I did it because they keep bumping the price every year. Damn near everything has gone up other than the wage. There are only a few variables that figure into a car payment...
1. Price of the truck
2. Money down
3. Value of trade in (if applicable)
4. Interest Rate
5. Term or number of payments.
I think this is why the leases are back in a huge way. Interest rates are creeping back up. Jobs are plentiful for right now, but this can change. There has to be a breaking point. Materials are sky high and tariffs aren't helping. America, and Americans are in debt up to their ASS. Charge cards, mortgages, HELOCs, Cars, boats, RV's, motorcycles, the phone in their pocket is financed!!! Eventually this will blow up. I am able to write my truck off through my business. That alone is why I bought it. Guys that work for a living and use a truck can't do it. After all the taxes, insurance, truck, and bills are paid there is nothing left.

 

I see........ More reasons to dislike the ACA; which is a deceiving name. Need to find a Political forum and stir it up. Certainly not on here
Know of any?

 

There’s people whose sole purpose is to buy expensive stuff just for attention while the debt mounts, some people legit have lots of money and good for them. I’m almost debt free and have learned my lesson using credit cards, I love my tundra will keep it forever and can’t wait to mod it some more when debt is done with. New truck prices are stupid, oh, well....older trucks and suvs will be cheaper(tundra,taco,4Runner,land cruiser).

 

I'm with you on the not daily driving. I'm in northern Ohio land of the salt. The tundra won't see a winter for five years. I kept my taco and it just clicked 46k after 3.5 years. The taco will go ten years or 200k which ever happens first. Then I will pull out the tundra as a daily driver and start looking for a new truck. I don't expect to ever buy another vehicle for 0.9%APR. Then again time will tell. If we hit another recession, the only way they know is to print and give away money. America has gotten drunk on this 0% loan bullshit. If they would quit playing the mark it up to mark it down age we would all be better off!