Looking at the price of trucks...

12,304 Views | 87 Replies | Last: 7 yr ago by Presley OBannons Sword
crowman2010
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Is it just me, or is the price for a base/just above base crew cab truck completely outrageous these days?

How are people affording these? 84mo note terms? 96mo note terms? I hate acting like a Lolpoor but good lord, the auto industry is destroying people.

bevokilla
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Free money! Don't look at the price just look at your monthly payments like 60% of America
crowman2010
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But how can the banks continue to lend at these levels? What happens if the person defaults and they are absolutely upside down? Bank can't recover that much on a repo...sounds like another "big short" waiting to happen.
Agmechanic
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quote:
But how can the banks continue to lend at these levels? What happens if the person defaults and they are absolutely upside down? Bank can't recover that much on a repo...sounds like another "big short" waiting to happen.


It is
saltydog13
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I was looking at a 6.7 ram 2500 tradesman (lowest trim) the other day just for ****s, and it was gonna be $46k out the door. the most basic dodge diesel is now almost $50k because people take out 84-96 month loans so they can "afford it"
O'Doyle Rules
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YOLO
EskimoJoe
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Go price an escalade. No freaking way am I writing a check for 100k plus if fully loaded for a quickly depreciating asset. I could buy 3 rent houses with the same money and bring home 1500 a month after expenses.

People do it though. Drive the mansion and live paycheck to paycheck in the shack.
BeastmodeAg
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Half of texags has a new f 150, ask them
bedofbrass33
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This current car credit bubble is part of the reason why I have a Subaru Outback and not a 4Runner. The Outback is paid off after 2 years. In return I deal with a few jokes from buddies and don't have quite the capability. I'd still be paying $500+ a month on a 4Runner for a while.
p_bubel
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But how can the banks continue to lend at these levels? What happens if the person defaults and they are absolutely upside down? Bank can't recover that much on a repo...sounds like another "big short" waiting to happen.
Used car prices aren't any better.
sts7049
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where can i buy a house for 33k?
Walter Kovacs
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quote:
where can i buy a house for 33k?


How do you feel about living in the RGV?
Corps_Ag12
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quote:
where can i buy a house for 33k?


You can put 20% down on a rental property valued around 160k.
EMY92
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The government keeps changing the numbers they use to track inflation. Look at how much more expensive almost everything is now compared to 10 years ago.
BustUpAChiffarobe
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i saw somewhere that the average new truck price in Texas is $45k
kag00
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High end trucks are crazy expensive and totally not worth it. That said I am looking at a low end XLT right now and it is as nice as a mid range truck from 5 years ago at a significant discount.

With 0% financing on new it is even more difficult to justify buying used these days when you combine with the mileage and lack of warranty on used trucks. Finance for as long as you can at 0% and invest the cash you would have paid for it.
Punked Shank
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As a 22 yo I put my own down payment on a spanking new '12 4wd access cab tacoma. 6 yr note no credit having about to graduate 22 yo kid. 300/mo. 2 years left.

Plan to have this truck till I drive it into the ground.

Curious what the future has in store for me
EskimoJoe
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quote:
where can i buy a house for 33k?


After you pay sales tax at 9.2% on the escalade then our ungodly property tax that we pay yearly on vehicles you are closer to 38 - 40k per house. That's about what i get them for on average (with some renovations if needed) where i live here in kansas. Nothing super fancy but definitely not junk either. They are good solid liveable houses. Rent them out for 700 to 800 per month. Take out 160ish a month for property taxes, 40-50 bucks back a month for maintenance and you are left with 500 a month on each property.
EskimoJoe
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quote:
quote:
where can i buy a house for 33k?


You can put 20% down on a rental property valued around 160k.


Nope. Not going to finance rental property.
Pepper Brooks
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Why tie up that much of your own capital with rates where they are?

If you're buying in the right market... keep your money for other ventures/investment opportunities, finance at 4-4.5%, and hopefully have someone else pay the mortgage on your appreciating asset. A buddy of mine has made boat loads doing this around dfw over the last 4-5 years.
EskimoJoe
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Why tie up that much of your own capital with rates where they are?

If you're buying in the right market... keep your money for other ventures/investment opportunities, finance at 4-4.5%, and hopefully have someone else pay the mortgage on your appreciating asset. A buddy of mine has made boat loads doing this around dfw over the last 4-5 years.


When oil falls on its ass and the rental market os down, I don't want to be left on the hook for a mortgage on a vacant house. I live in a town of about 7000 people. This scenario happened and I know some other landlords who are leveraged like that and they are hurting. We have been able to stay occupied but we also keep our stuff in pretty good shape. I have had a few people come to me with an offer to sell so they can get out from under a payment.

I minored in finance so I fully understand how your ROI can be higher when you use the banker's money to buy assets. In fact it drives my banker crazy that he doesn't own 80% of my portfolio. I own 100% of the revenue after income taxes, property taxes and insurance though. My lowest performing property is netting 18% yearly as it is though.

I have had several people tell me that my capital structure is wrong and that I should be financing everything, but the common factor with everyone telling me this is that this is how they DID it when they USED to do it. Sounds like it is working out for your buddy in Dallas though.
87IE
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quote:
High end trucks are crazy expensive and totally not worth it. That said I am looking at a low end XLT right now and it is as nice as a mid range truck from 5 years ago at a significant discount.
.


Before I learned about 1ags Ford hookup I waited until they were taking 11k off of the Supercrew. I think I paid 23,xxx for my 2010. XLT with Sync, all power, and power pedals I never adjust and the 6.5 ft bed.

I've looked at the newer ones but I like not having a payment. My saving grace is the dealer in south Austin hasn't had any Supercrew with the 6.5 ft bed in stock. Since that's a deal breaker for me I haven't been tempted.

The way the prices are going up I'm going to hate buying another one as the longest I'll finance is 5 yrs.

The Fife
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But how can the banks continue to lend at these levels? What happens if the person defaults and they are absolutely upside down? Bank can't recover that much on a repo...sounds like another "big short" waiting to happen.
Don't worry, it can never happen and housing can never go down.
[/conventionalwisdom2007]
Mr. Dubi
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Back on tooic--sort of. Last night someone showed me a $170,000 truck. I though wow! In the last 30+years, I haven't spent that much on all the new cars and truck I have bought. Or on the new and used cars and trucks I have bought. Or even on the new and used cars, trucks and mototcycles I have bought.

To hit $170,000 spent on transportation I have to include every new car and truck, every new and used motorcycle, both new watercraft, and the trailers to tote them. Then I hit that $170,000 barely, but only if you add up all the purchase prices, not deducting the sales price or trade in value of the ones I have sold.

Amazing that trucks are that expensive, and people are buying them, and banks are financing them.
crowman2010
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Glad to know that I'm not the only one that thinks this is just absolutely crazy!
Ol_Ag_02
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This current car credit bubble is part of the reason why I have a Subaru Outback and not a 4Runner. The Outback is paid off after 2 years. In return I deal with a few jokes from buddies and don't have quite the capability. I'd still be paying $500+ a month on a 4Runner for a while.


I own a 4Runner but kinda want an Outback. You need less ******y friends.
Burdizzo
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quote:
As a 22 yo I put my own down payment on a spanking new '12 4wd access cab tacoma. 6 yr note no credit having about to graduate 22 yo kid. 300/mo. 2 years left.

Plan to have this truck till I drive it into the ground.

Curious what the future has in store for me



In 1992 at age 24 I bought a brand new 1992 F250 with a 7.3 diesel and a 5-speed. I paid a little over 20k for it, finances it for 48 months (8 was the going rate back then), and paid it off it about 36 months. My plan was to either drive it until the wheels fell off or give it to my kids. That truck has about 350k miles on it now and it for sale on Craigslist for $1500. I like to think I got my money's worth out of it.
kag00
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I keep cars for 10 years at a time so buying a used anywhere close to a new price is not worth it to me. If I could get a very low mileage used for 20% less then it would make sense. Add in the free money financing and it really makes sense. I actually will put the cash I would have used to buy the car in a 1% annual savings account (they exist) and make payments from there rather than cash flow. The 1% is moreally than the 0% even when accounting for fees.
Dr. Doctor
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My current explorer, 1997 Kelly Green XLT with the 4.0 X-vin engine was $30k out the door. With the official inflation (using an app on my phone) would make that car $45.1k today (bought Sept '96).

This has cloth seats, basic radio (no CD originally) and no sunroof. I think I would be hard pressed to find a similar car for less than that today.


I definitely think SUV/trucks have been inflating much faster than 'normal' inflation.


The 2013 Fusion SE Ecoboost I bought was just a tad over $30k when I got it. Technology and features much nicer, but the same price 17 years later.

~egon
permabull
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crowman2010
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Except you had to go from an SUV to a car...
IDAGG
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Three years ago I bought a Dodge 4dr 4WD pickup with 93K miles for $9K. It works fine. I have had to put about $800 in repairs into it in 3+ years. . And the upside of having an old truck? I park where the hell I want to w/o worrying about door dings and when I drive it on the boonies I don't worry about screwing up the paint. There is no friggin way I would pay $45K for a truck
Presley OBannons Sword
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Free money! Don't look at the price just look at your monthly payments like 60% of America
I work in Baytown, and I can say that this likely goes for 90% of the trucks on the road out there. Some of these trucks have to have $100k in them.
crowman2010
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quote:
quote:
Free money! Don't look at the price just look at your monthly payments like 60% of America
I work in Baytown, and I can say that this likely goes for 90% of the trucks on the road out there. Some of these trucks have to have $100k in them.
There's a few friends that I have who have purchased vehicles in the $60k range...on teacher salaries, with homes in the $300k range. I have no idea what their inheritance looked like (if any) but that just seems like they are living on the edge of an emergency.
Olag00
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So I take it I am in the minority here. The below are the vehicles I have had since 1996.

77 chevy (used)
92 chevy (used)
96 Chevy S10 (used)
98 dodge (new)
01 Z71 (new)
05 f150 (new)
07 Ram Hemi (new)
11 Hummer H3 (new)
13 Ram Hemi (new)
16 f150 (new)


The only one I didn't "buy" was the H3...I leased it. I have always been on the upside of the loan so didn't have to worry about being upside down on any of them.
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