What influences the cause of over priced vehicles?

Do people really enjoy paying 50K for a 3 year old truck?

I mean, why is a 10 year old truck worth 20k+?

Why don't the general public revolt against these new and used prices and drive these prices to where one doesn't pay 20x what a ten year old truck or SUV is worth...

This inflation is upon us and our willingness to pay 50k+ for a vehicle that only costs 18k or less to produce.

Greed

Some places are greedier than others though, Malaysia has a 300% tax on all new cars with the exception of their locally manufactured car.
One of the major politicians sons owns the company but I’m sure that’s just a coincidence

a reply to: EternalSolace

Well if you think car prices are to high now just wait.

www.foxbusiness.com...

“The administration’s decision to impose substantial steel and aluminum tariffs will adversely impact automakers, the automotive supplier community and consumers, as this would substantially raise costs and therefore prices of cars and trucks sold in America,” a Toyota spokesperson said.

I think the problems started in the early 2000s. Major manufacturers began competing for quality, and started making cars that last too long. My Chevy is nine years old, and runs like new. Planned obsolescence became a fixture of the past.

People started waiting far longer, to purchase a new car.

So now, they have started cramming vehicles with technology, hoping for trade-ins. Bling ain't cheap.

That's why a truck now costs 50K.

Planned obsolescence. Sure you could have a vehicle that lasts 20-40 years with minor changes but there isn’t any money in that. Much better to sell a person a vehicle every 3-7 years and make bank off minor changes. You can still drive a 69 mustang and go just as fast as anyone else and look better doing it. Just can’t sink your blue tooth without a upgrade of your deck.

Lots of extra safety features in terms of multiple air bags and crumple points. Lots of reactive computer controlled responses in terms of breaking and traction, to insure that those who underestimate or don’t understand the rolling metal they occupy get home in one piece.

The basic form of shell and wheels hasn’t changed all that much regardless of fuel source. Because the medium on which they travel haven’t changed much and they where already effective for traveling on asphalt.

So you pay for the latest iteration that pairs with the latest quality of life tech.
Also everyone one wants a living wage and the automotive industry employs a lot of people who could be replaced by cheaper robotic labour(even though a lot of it has already been automated) so you pay to insure another person gets payed maintaining the status que.

Plus they were deemed to big to fail and got bailed out on tax payer dollar insuring record profit with little to zero chance of losses within the applicable time frame. So instead of insuring the job quality of the labourers those in power used the money to insure thier business and profit and further remove the human element insureing less overhead and greater profits.

Literally why I drive I Ford. Sure they are evil just like the rest of them but at least they never took the bail out money and can still piss with the rest of them.

a reply to: EternalSolace

Less than one in fifty people had the means to maintain their vehicle. Mostly just a lack of mental capacity, but lack of tools and workspace comes into play.

When its costs you six grand a year to repair your ten year old car, that 20k loan on a three year old car doesn't look as bad.

Truck drivers tend to make money using trucks, so the numbers shift.

Try buying a used one ton. Bigger makes the taxes too high, smaller makes the capacity insufficient.

Ten grand for a pos decade old truck that needs another four in work. Unless you buy something that isn't Chevy... Then it needs two (average) every year. indefinitely.

Why do they cost so much?
Because they can. What are you going to do about it, compete? The laws for these corrupt massive corporations predate out current monetary system.
Good luck.

a reply to: a325nt

Ten grand for a pos decade old truck that needs another four in work. Unless you buy something that isn't Chevy... Then it needs two (average) every year. indefinitely.

Lol, no

Do you have a link for that?

a reply to: EternalSolace





www.luxos.com...

The 12 most expensive ladies handbags in the world ..... every one of them

more expensive than my small 10 year old car that has only 15,000 miles on

the clock.

I personally wouldn't give them house room, but then them that have it feel

the need to flaunt it. /smh.

a reply to: EternalSolace

Banks. It used to be you couldnt get a loan for a car. Happened with housing, cars, education, and any market you can think of where banks started lending.

In microeconomics, we call this as a decision at the margin, a perceived value, and market demand.

Source: Perfect scored a university level microeconomics class

PS: It wasn't a baby-mode version of the class. I dropped microeconomics the first time, as a dumb 18 year old. I didn't take it again until I was 22. I took the class seriously and stomped it. ( I had been working for 3 years straight at a crap job, after I had dropped out of college.)

After learning the value of a dollar, I was willing to learn the value of a dollar... Again.

a reply to: EternalSolace

People. Its all about what they want.

So go ahead a build a car without power brakes, power steering, air conditioning, a mat instead of a carpet, bench seats, backup camera, power windows, power seats, computer screen and all of the other goodies and see if they sell. Remember when Unions were to blame with their high wages? Well that one is out the door as the foreign manufacturers here on average will pay their non union employees around $25 an hour, and they also have similar price points as Ford and GM . Cars today will last longer also; engines can typically last up to 350,000 miles if you change the oil when you are supposed to. I also worked for GM [powertrain] and in the Heavy Truck [Semis] Industry. Since the late 1990's, Heavy trucks already had powertrain warranties at 250,000, 500,000 and even some up to 750,000 miles. Advancements in oil and technology from use of computers in design, stress analysis and machining improved everything across the board and much of it was the result of the governments push for cleaner air and higher mileage standards. Everything in the price is due to people and what they want as everything is inter related just like the off road toys market. Simple cause and effect

And then you have the BUBBA factor in that bigger is better is the thought process that rules. No one needs it nor is is necessary or rational. So every one wants to be a bad arse or cowboy and own the biggest, fastest most powerful thing on the street. Same goes for soccer moms and the SUV crowd mentality. Bigger is better and "I" wants creep in and the price point jumps.

$50,000 vehicle. Not me.

I just traded in my 2015 Chevrolet Colorado LT Pickup Truck for a 2019 Colorado LT. Base price was $29,000. They gave me $15,000 for the trade which had 47,600 miles along with $3000 in rebates. I have NO employee discount benefits. So final cost less tax was around $11000. Finance was via BOC at 3.99% for 60 months. So it only has the Inline 4 cylinder engine with a 6 speed transmission but I can get 28 mph on cruise control doing 78 MPH on route 20 from Atlanta to Columbia. I can also tow up to 5500 pounds as it came with the owing package. I am OK with it and it looks nice. I can also see my shoes when I look down while at the urinal.

I am not a BOT for GM but the truck rides better than some new cars I have owned.

People. Its all about the people.

I purchased a brand new RAM 1500 Express blackout edition, w/395hp Hemi V8, which gets 24mpg on the highway for $33K 1 year ago. This truck has the same German made 8-speed ZF transmission found in Rolls Royce vehicles. The prices are no where near $50K for a decent brand new truck unless you want leather, sunroof, crazy large touchscreen stereo/navigation system, dual climate zones, air-suspension, retracting running boards, etc.. the V6 trucks can be bought new for under $30K & a single cab can be bought new today for under $25K. Today's V6 engines have at least 30% more horsepower than V8 engines did 20 years ago. V8 trucks 20 years ago only got @ 12mpg on the highway.

I run a business where I'm required to have a one ton plus truck for work. The prices on new trucks is ridiculous because I see people wearing suits and soccer moms driving around in big ass diesel trucks with no hitch and ball and just park it at an office all day or in a store parking lot.

Big trucks have become a status symbol much like owning a bmw or benz. The problem is tons of people who don't need these trucks are willing to take on a large 7 year note for a vehicle they don't need just to look cool.


I'll stick with my 2001 F350 SRW 7.3L powerstroke I got for $6000 cash. Sure I've spent a fair amount of money to fix it up, but to me that's fine as it makes me money, and I love that truck.

originally posted by: drewlander
Banks. It used to be you couldnt get a loan for a car.

Did you just make that up? GMAC has been around since 1919 and was an invention of CEO Alfred Sloan to help perspective buyers purchase a vehicle without saving for years. Car loans are nearly as old as the car industry.

The reason is cos eedjits keep buying them . Everybody stop buying and you'll see the price tumble.

"The reason is cos eedjits keep buying them."

That is basically the answer.

Marketing 101 starts with the simple concepts of supply and demand.

With most consumer goods, the retail price mirrors demand: when something is a hot commodity, the price gets hot too.

If you want to attach greed to the equation--you have to also consider greed on the part of the consumer when it comes to status symbols. If a dude jus' gotta have that Cowboy Cadillac to earn the respect of his friends and enemas, then that's greed too.

originally posted by: EternalSolace
Do people really enjoy paying 50K for a 3 year old truck?

I mean, why is a 10 year old truck worth 20k+?

Why don't the general public revolt against these new and used prices and drive these prices to where one doesn't pay 20x what a ten year old truck or SUV is worth...

This inflation is upon us and our willingness to pay 50k+ for a vehicle that only costs 18k or less to produce.

Supply and demand.

In addition, even base model cars and trucks are bloated with technology (some mandated by law) so that causes price inflation.

I'm sure some people wish they could buy a super stripped down truck real cheap (roll up windows, stick shift, no ABS, Nav, Cruise Control, etc). However, that is not what the market really desires so manufacturers target people who want lux-trucks and bro dozers.

a reply to: Edumakated
I think your wrong. It's not what the market wants, it's what the manufacturers want cos it makes the vehicle more and more complicated and in doing so makes planned obsolescence easier to perform.
The complicated bit means you HAVE to take it to them to be repaired. Easy aint it.

originally posted by: crayzeed
a reply to: Edumakated
I think your wrong. It's not what the market wants, it's what the manufacturers want cos it makes the vehicle more and more complicated and in doing so makes planned obsolescence easier to perform.
The complicated bit means you HAVE to take it to them to be repaired. Easy aint it.

If there is enough demand, manufacturers will make the cars. I am some what of a car guy. Let me give you an example. Sport car guys always complain automakers don't offer cars with stick shifts. However, auto makers will tell you that the vast majority of people don't buy stick shift cars anymore even when that option is offered. So most sports cars are no longer offered with stick shifts.

Free markets means a competitor will offer something at a better price if there is legitimate demand for it. The problem is that the vast majority of the market wants bloated cars and trucks hence the higher price tags.

No. It was part of a presentation i attended a while back. I should have checked into that.