"Jcarr" (jcarr)
03/04/2016 at 09:30 • Filed to: Math
0
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"Jcarr" (jcarr)
03/04/2016 at 09:30 • Filed to: Math | 0
| 29 |
Ten years ago I bought a 3-year-old Dodge Ram 1500. I loved it, but a lingering problem with the intake caused me to get rid of it in 2009. I figured I would get another pickup someday, but it seems like prices have taken a significant turn upward in the time since.
I wanted to see if prices really had changed that much and, if so, how much. So I did the math.
In 2006 I bought this 2003 Ram 1500 SLT Sport with ~38,000 miles. It was a quad cab short bed with the 5.7, 20" wheels, 4WD, towing package, 3.92 rear end. Fairly middle of the road equipment wise. I paid $18,900 for it. Adjusted for inflation that equates to about $22k today.
Fast forward to today. I did some searching through listings for 2013 Rams with similar equipment and miles. Average price was about $30k give or take $2-3k.
By my math that’s an average price increase of about 25-45% over the last 10 years.
I know feature content has increased pretty significantly in the last decade, but is that a reasonable 10-year rise?
Is this 35% better? Maybe.
cazzyodo
> Jcarr
03/04/2016 at 09:42 |
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I’ve done similar comparisons the past couple years. Looked up msrp on my family’s truck when my dad bought it new in January 2000 and reconfigured one today. Adjusting for inflation I saw an increase as well. Can’t remember the percentage off the top of my head but I just couldn’t find a way to agree with it.
Makes me sad.
Modern trucks are couches with wheels. The one my family had was nice, Lariat trim F-150, even by today’s standards, too.
PatBateman
> Jcarr
03/04/2016 at 09:45 |
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Truck prices have held up ridiculously well. Over ten years of ownership, I lost LESS THAN HALF of my F-150's value to depreciation.
Also, the nicer ones are now expensive as shit.
Luc - The Acadian Oppo
> Jcarr
03/04/2016 at 09:47 |
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Really? In Canada I always thought trucks were really cheap.
brand new a 2016 Ram 1500 SXT Quad Cab 4x4 Hemi is selling for $28,495 here CAD.
Heck a Ram 1500 ST RWD Hemi is only $19,995.
A brand new 395hp V8 Truck for under 20K now that is cheap.
Nibbles
> Jcarr
03/04/2016 at 09:50 |
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In reality it’s that the 2009+ Rams (Dodges) are leagues ahead of their predecessor and they keep getting better. It’s almost like they got tired of producing shit and decided to make a competent truck.
BreakMyWallet
> Jcarr
03/04/2016 at 09:52 |
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I comment on this to anyone standing nearby nearly every time I’m looking at vehicles. Your math is not wrong - trucks have become a huge profit center and as a result their pricing has accelerated intensely. I just need a little thing with a bed to haul crap on occasion.
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Jcarr
> Nibbles
03/04/2016 at 09:54 |
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But are they really a quarter to almost half as much better than they were before? Just seems like a steep rise to me.
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Jcarr
> Luc - The Acadian Oppo
03/04/2016 at 09:55 |
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Maybe I should move to Canada.
450X_FTW
> Jcarr
03/04/2016 at 09:56 |
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I have a 2012 Ram 1500, 5.7L 4x4, quad cab, 54k miles. Sticker was $42k I bought it new for $36k (employee discount). I’m planning to sell it soon and by comparison I think I can get about $25k for it based on what is out there for sale now. Low gas prices will also increase your truck resale value too
Stapleface
> Jcarr
03/04/2016 at 09:56 |
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Yes, I think they have definitely outplace inflation, and overall I think they’re just too expensive. I think there’s a few different reasons for this. As mentioned elsewhere, trucks nowadays are loaded to the gills with all kids of fancy doodads. They’re also the major profit center for most automakers. And since everyone is doing it, they can afford to charge what they do for a truck, because there’s no other game in town.
Another thing, I think they’re honestly too big. Hell, the Colorado/Tacoma are now bigger than a 15 year old full size. Why? I get that Americans are getting larger, but the trucks seemed to have outpaced them. Maybe part of the reasons that trucks are so expensive is because they're soo much bigger than they were? Maybe if they were to build a truck in the size they were in the 80's they'd be cheaper?
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Nibbles
> Jcarr
03/04/2016 at 10:06 |
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They may very well be. The new transmissions are definitely worth their share of the extra cost. The interior quality is drastically upgraded as well. The major concerns from the previous generations’ front suspension have (finally) been addressed and the engines are competitive with, if not better than (in some cases), the competition. Dodge went from an
also-ran
to a solid contender with the current generation trucks and it shows. And it costs. Oh, did I mention the transmissions? Because you can get the ZF 8HP in the truck which is widely considered to be the best automatic transmission...
... In the WUUUHRLD
Ash78, voting early and often
> Jcarr
03/04/2016 at 10:13 |
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What's crazy is that my informal analysis of entry- to mid-level cars is that prices have actually gotten better all around, not even adjusted for inflation. My 1995 VW Golf, bought new for $15,500, is nowhere near as good as what you could get for that money today. And if you adjust for inflation, you're technically OVER $24k! That's a lot of car today, definitely more than two airbags, no cruise control, and 115hp.
j250ex
> Jcarr
03/04/2016 at 10:41 |
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Truck prices in general are on the rise. Seems like every year the prices get closer and closer to 70k.
Meatcoma
> Jcarr
03/04/2016 at 10:46 |
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This is the reason I still have my 2003 Ford F250. It’s paid for, pretty reliable and I can’t see spending 20k on something that is marginally better because it’s newer and has fewer miles.
Milky
> 450X_FTW
03/04/2016 at 10:53 |
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Holy damn, employee pricing gets you that much off?
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450X_FTW
> Milky
03/04/2016 at 10:57 |
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Depends on the vehicle. For the Ram I picked out yes, and this is full employee pricing as I worked at Chrysler at the time. But when my wife bought her 2013 Jeep Wrangler, it was only good for $1000 off, on top of the $1000 rebate the dealer was giving
Birddog
> Jcarr
03/04/2016 at 10:59 |
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Just for fun I went and tried configuring a new F150 as similar as possible to my 1995 F150.
My 1995
XLT Extended cab, 4x4, short bed, cloth interior, 5.0 V8
MSRP $20,995 ($32,638 adjusted)
This is where it gets interesting
In 2016
I’d have to downgrade to the XL trim.
XL, extended cab, 4x4, 6.5' bed, cloth interior 5.0 V8
MSRP $35,509
That’s really not that bad even though I had to downgrade a trim level as it’s at least 60% more truck than the 1995.
Now, finding that XL on the used market in 3 years? Odds are slim to none.
BrianGriffin thinks “reliable” is just a state of mind
> Luc - The Acadian Oppo
03/04/2016 at 11:04 |
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Damn, I'm buying one in Canada.
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BrianGriffin thinks “reliable” is just a state of mind
> Jcarr
03/04/2016 at 11:05 |
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This is he same boat I’m in. I want a new truck, but it needs to be four door and 4WD.
To get that combo, all of the manufacturers require a higher trim level (or the stupid short bed). I just can't pay $38k for a new, or $32k for a slightly used, truck. That's craziness.
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Jcarr
> BrianGriffin thinks “reliable” is just a state of mind
03/04/2016 at 11:07 |
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Yep. I’m beginning to think I’m either never going to get a truck again or I’ll have to step down to a Coloranyon/Tacoma/Frontier.
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BrianGriffin thinks “reliable” is just a state of mind
> Jcarr
03/04/2016 at 11:08 |
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Thought that too, but I reeeeaaalllly want a bench seat :(
Sam
> Luc - The Acadian Oppo
03/04/2016 at 11:13 |
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Not only that, but the Canadian dollar is so weak right now that it’s even cheaper for an American.
That 1500 ST RWD Hemi is only $14,959 USD. You can barely even buy a new car for that cheap in the US.
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Luc - The Acadian Oppo
> Sam
03/04/2016 at 11:13 |
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There you go. what are you waiting for then?
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Milky
> 450X_FTW
03/04/2016 at 11:14 |
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Ah okay. Yea I know some people with crazy good lease deals on Rams, and they cant make enough wranglers. So that makes sense.
gawdzillla
> BrianGriffin thinks “reliable” is just a state of mind
03/04/2016 at 11:31 |
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I like the bench in my silverado
d15b
> BreakMyWallet
03/04/2016 at 12:29 |
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Heh, get a Honda Ridgeline.
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BreakMyWallet
> d15b
03/04/2016 at 15:10 |
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well, I would ideally like something with a bed that will hold something larger than a beer keg
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JDMatt
> Luc - The Acadian Oppo
03/04/2016 at 15:19 |
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Right now there has to be a businessman in a border state that’s figuring out how to legally resell cars from canada at a discount while the USD is strong.
Dru
> Jcarr
03/04/2016 at 16:34 |
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I think cheap fuel has a lot to do with it. Let fuel go back up to $3+ per gallon and people wont be able to give them away.
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d15b
> BreakMyWallet
03/04/2016 at 17:05 |
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lol, smh.