Pricing is out of control

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PowersOf12

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When I ordered my 2012 2WD, all included (Hemi, RamBox, Towing Package, Spray in Liner, etc.) was $28,000 MSRP. In comparison, my 2004 Sierra 4x4 LM7 was $35K MSRP 8 years before my RAM. I am due for a new something new, but stuff is too expensive.
 

TestPilot57

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There's a significant difference between a 25% jump in price with a cup of coffee to a 25% jump in the cost of a vehicle.
25% = 25%. You can even type that into Excel and it will say TRUE.
 
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JoshsRam

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25% = 25%. You can even type that into Excel and it will say TRUE.
On paper yes. But ask someone if they can afford for their cup of coffee to go from $2 to $4 and they'll say that sucks and keep buying. Ask them if their vehicle goes from $40k to $50k and I bet you get a different response. So, yes, 25% is 25% but a $2 change and a $10k change are far from the same
 

TestPilot57

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...ask someone if they can afford for their cup of coffee to go from $2 to $4 and they'll say that sucks and keep buying.
And there's the problem.

The coffee will be "recycled" within a few hours while the truck could/should last 10 years. But so many people are "living in the moment" and don't recognize that temporary sacrifice can result in long term reward.

While I am no longer in this place, years ago I bought Maxwell House and made my own coffee so I could afford to buy a $5000 truck, compared to the guys paying $4 for Starbucks and driving junkers that wouldn't pass a righteous inspection and left them stranded now and then. I would do the same again.
 

mtofell

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There's probably some economic term that I'm unware of but it's the concept that everyone is expecting prices to rise so places just jack them up far more than their actual costs. Like restaurants are paying on average 8% more for their supplies but they raise there prices 15%.

I'll admit I've done it with my own business in the past. I ran a home inspection company for years and one of our largest costs was fuel. When gas prices spike and we're paying an extra $6/job more in gas I'd raise prices $20. Everyone was expecting the increase and it was an easy time to raise prices. Fwiw, it's a pretty competitive industry full of ups and downs so I had to take what I could when I could.
 

Docwagon1776

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On paper yes. But ask someone if they can afford for their cup of coffee to go from $2 to $4 and they'll say that sucks and keep buying. Ask them if their vehicle goes from $40k to $50k and I bet you get a different response. So, yes, 25% is 25% but a $2 change and a $10k change are far from the same

That's because most people are completely ignorant of economics and behavioral economics, make illogical and irrational decisions as a result, and then fail to accrue wealth.

If you buy a pair sunglasses for $50 every 10 years and they say "give me $550 this year" literally nobody would do that.

If you buy a truck for $50k every ten years, they want $51k and offer to 'meet in the middle', how many quibble too hard over that $500? You're still out $500 every 10 years, but the percentage is different so the emotional response is different.
 

Tulecreeper

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And there's the problem.

The coffee will be "recycled" within a few hours while the truck could/should last 10 years. But so many people are "living in the moment" and don't recognize that temporary sacrifice can result in long term reward.

While I am no longer in this place, years ago I bought Maxwell House and made my own coffee so I could afford to buy a $5000 truck, compared to the guys paying $4 for Starbucks and driving junkers that wouldn't pass a righteous inspection and left them stranded now and then. I would do the same again.
If a person expects to only get 10 years out of a truck, they have set their bar way too low. I fully expect to get up to 20 years out of a vehicle, and still have it in relatively good condition when I sell it and buy another. I drove my last truck for 23+ years, and the one before that for 13. This current RAM is my 3rd in 35+ years, and both prior ones sold for high KBB value.
 

Tulecreeper

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That's because most people are completely ignorant of economics and behavioral economics, make illogical and irrational decisions as a result, and then fail to accrue wealth.

If you buy a pair sunglasses for $50 every 10 years and they say "give me $550 this year" literally nobody would do that.

If you buy a truck for $50k every ten years, they want $51k and offer to 'meet in the middle', how many quibble too hard over that $500? You're still out $500 every 10 years, but the percentage is different so the emotional response is different.
Doc, I think the most I've ever paid for a pair of shades was maybe $20. But then, I lose most of them within a year over the side of the boat or dropping them in the duck blind then stepping on them. :smoke2:
 

Docwagon1776

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Doc, I think the most I've ever paid for a pair of shades was maybe $20. But then, I lose most of them within a year over the side of the boat or dropping them in the duck blind then stepping on them. :smoke2:

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Get you one of those retention chain things like Sofia has.
 

TestPilot57

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If a person expects to only get 10 years out of a truck, they have set their bar way too low.
I was being generous.

Then again, some people do wear out a truck in 10 years (50k per year) while others have hardly broken it in after 20 (5k per year).
 

Dodge 1500 4X4

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We are in what's being called End Stage Capitalism. The elite have amassed so much wealth and influence that we are on the verge of returning to feudal society, where the 1% sociopolitical elite control everything and everyone else is a serf. The globalist war to erase the middle class is nearly complete.
You are a realist that has your head above sand, the middle class I know around me don't think there is a problem they are credit card poor and using there 403'b, still buying new cars and upgrading their homes living for today don't care about tomorrow until you can convince the masses the price of new cars will never come down, and yes GREED, GREED, GREED
 

BossHogg

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the price of new cars will never come down, and yes GREED, GREED, GREED
I just was reading what the UAW is going to start with when contact talks begin here shortly. They are asking for a lot, a 46% pay increase, and a 32-hour work week, the most notable wants so far. I understand the concept of asking for the moon and then negotiating down but if they get this or any substantial compensation, the price of a new vehicle, coupled with high interest rates, is likely to increase well out of the reach of the middle class.
 

chri5k

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So what should a new RAM truck cost?
 

Tulecreeper

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I was being generous.

Then again, some people do wear out a truck in 10 years (50k per year) while others have hardly broken it in after 20 (5k per year).
Yeah, when I sold my Silverado in March of this year right after I went and picked up my RAM it had 190,000 miles on it after 23 1/2 years. So I guess I only put about 8000 miles a year on it. And I made a couple 3200 round trips from CA to Saskatchewan on hunting trips, numerous 1000 mile round trips from N. CA to S. CA, and one 2000 mile trip when I moved from CA to AR. And it was my only vehicle for all those years.
 

spike42

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MSRP is one thing…. Out the door is another. Do some homework and you can find about 10k in discounts, rebates and other incentives. I just purchased a new truck this past week. I do not foresee these discounts going away anytime soon.
 

Tulecreeper

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MSRP is one thing…. Out the door is another. Do some homework and you can find about 10k in discounts, rebates and other incentives. I just purchased a new truck this past week. I do not foresee these discounts going away anytime soon.
No discounts, rebates, or any other incentives when I bought mine in January.
 

chri5k

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I don't know. Cost plus 10% seems fair. And by cost, I mean the cost to build and ship it.
So how do we know the current prices are not cost + 10%? Also whose cost? FCA, dealer or ??? Unless someone is willing to spill the beans on whoever's cost we are talking about then it would seem we have no way of knowing.
 

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