So how more so than why do folks buy these new pickups?

[hipster dufus]

We all sound like a buncha grumpy old men! Get off my lawn!

 

[Concrete Pete]

Is there that many folks got that high of a paying job?

I’m blessed with what many would consider an above average income (thank God) and I am genuinely curious about this.

I don’t begrudge anyone with a nice new truck. I just know what the median household income in the US is and wonder how people are making these payments.

 

[glynr329]

I paid my 2018 chevy 4x4 off a few months ago sitting in garage 4000 miles. I realized that was a very bad decision.

 

[Raylander]

I’m blessed with what many would consider an above average income (thank God) and I am genuinely curious about this.

I don’t begrudge anyone with a nice new truck. I just know what the median household income in the US is and wonder how people are making these payments.

Tax incentives as a business owner and/or self employeed

 

[Concrete Pete]

I paid my 2018 chevy 4x4 off a few months ago sitting in garage 4000 miles. I realized that was a very bad decision.

Congrats on paying it off. I don’t know that it’s a bad decision. You probably made a smart choice given that you’ve got it paid off.

Looking at inflation right now and the avg rates of return from the stock market we’ll be seeing, it might have been smarter to just buy a new vehicle and pay for it vs investing.

 

[Concrete Pete]

Tax incentives as a business owner and/or self employeed

That bonus depreciation is awesome. Full value of the purchase price * your effective tax rate (so not a 100% reduction in the tax bill, but still much better than forking it over to Uncle Sam).

So if you’re paying a 20% effective tax rate and you buy a truck for $45k, you’re getting a $9K discount on your taxes. So it’s like paying $36k.

Unless there’s a credit I don’t know about that let’s you offset your tax bill dollar for dollar for the full price of the truck. That’d be a better deal.

 

[Mattval]

A $60k pickup for 5 years 0%, that is $1000 a month not counting insurance. Is there that many folks got that high of a paying job? I won't even get into the teens and 20-30 year olds I see driving them. I just cannot comprehend. Just looked up a used F-250, 2017 -2019 and even them are $54k to $72k

J me and you both must be doing something wrong!

 

[660griz]

Not sure how others, including teens and 20-30 somethings, are doing it but, for me...40+ years of hard work, and smart choices, to get where I am. I deserve a few bad choices now. I find that if you set the bill pay to automatic, that $1000+ payment doesn't hurt as bad.

 

[4HAND]

To each his own, but we buy used.
I've owned 1 new vehicle. 1987 Chevy 4x4. Quickly realized you can save $1000's by buying slightly used .

Thought I should correct this.
We recently bought a new truck. The market is so messed up right now, we could buy a new one for about what used ones were going for. It's crazy.

 

[HermanMerman]

Thought I should correct this.
We recently bought a new truck. The market is so messed up right now, we could buy a new one for about what used ones were going for. It's crazy.

I’m in the same boat right now. Looking to replace my 2008 Ram with 220k miles on it… was planning on a slightly used one but at this point I’ll either keep driving the one I have until things are half way normal again or bite the bullet and just buy a new one.

 

[killerv]

Thought I should correct this.
We recently bought a new truck. The market is so messed up right now, we could buy a new one for about what used ones were going for. It's crazy.

yep, when only talking a 3 grand difference or less between new and used....I'm going new everytime, getting the 0% or lower interest rate than used rates, and all the incentives offered, etc....unlike used vehicles.

 

[4HAND]

I’m in the same boat right now. Looking to replace my 2008 Ram with 220k miles on it… was planning on a slightly used one but at this point I’ll either keep driving the one I have until things are half way normal again or bite the bullet and just buy a new one.

Yep. Our problem was my wife's Tahoe was our primary vehicle. 2012 w/183,000 miles on it. Nothing wrong with it, but getting a little heavy on mileage.
We couldn't find a decent deal on a Tahoe so we bought the truck.
In a year or so when the market gets back to normal (hopefully) we'll buy her a Tahoe & this truck will roll down to me.

 

[lonewolf247]

My son just bought a new Chevy Trail Boss. All trucks are overpriced now, including this one, but the used ones, with 30,000-50,000 miles were selling for the same price?

My truck is a 2015 GMC 2500HD, and the book value is just about the same price as I paid for it back then? Seems tempting to trade it, but, it's paid for and I don't want another note. Going to put a little money into any maintenance and repairs needed, and drive it another 4-5 years!

 

[Robert28]

My son just bought a new Chevy Trail Boss. All trucks are overpriced now, including this one, but the used ones, with 30,000-50,000 miles were selling for the same price?

My truck is a 2015 GMC 2500HD, and the book value is just about the same price as I paid for it back then? Seems tempting to trade it, but, it's paid for and I don't want another note. Going to put a little money into any maintenance and repairs needed, and drive it another 4-5 years!

The only way to get a new truck these days is order it. I think Ford was doing a $1500 rebate on orders this month if I remember right. Worst time I can ever remember to buy a truck right now with the chip shortage the way it is. I would keep your truck too.

 

[ucfireman]

yep, when only talking a 3 grand difference or less between new and used....I'm going new everytime, getting the 0% or lower interest rate than used rates, and all the incentives offered, etc....unlike used vehicles.

Haven't shopped in a while but used to be you could choose the 0% or the incentives but not both. Have things changed?

 

[Son]

One thing for sure. I wont be buying a new vehicle of any kind. Pricing has gone absolutely stupid. And check out used vehicle prices, they are off the chart too. Best to keep patching up what you have and keep rolling. Evidently those we see driving new pickups around, have some means of writing em off. Really turns my head when I see teenagers driving new trucks these days. Last 3/4 ton 4x4 I bought in 74 cost 5700.00 bucks and it was a Ranger XLT full time four wheel drive. with a 360 in it. New Oldsmobile bought in 1964 cost 2670.00, The new prices definitely hurts those of us on a fixed Social Security income. In fact, if were not for my own retirement income, I would probably be homeless if SS was all I had. Just taxes would take me down and get our home.

 

[Son]

Last truck bought, Nissan SV 4x4 2011, and it's still going. Even though I've put some dents and lots of mud on it. Has the towing package and a sick cylander motor

 

[Buford_Dawg]

JT or anyone else in the Truck sales business, is there any light at the end of the tunnel? My current truck is getting some age and some minor but expensive things are cropping up. Would like to buy something new or less than a couple years old, but it is really expensive at the moment. When a basic Chevy or Ford crew cab truck costs 50k or more out the door, it is tough on the common guy.

 

[Tight Lines]

JT or anyone else in the Truck sales business, is there any light at the end of the tunnel? My current truck is getting some age and some minor but expensive things are cropping up. Would like to buy something new or less than a couple years old, but it is really expensive at the moment. When a basic Chevy or Ford crew cab truck costs 50k or more out the door, it is tough on the common guy.

This is the new normal. The manufacturers are going to keep inventories low and prices high. They've publicly said that. So used car prices are going to increase, and new car prices are going to stay at MSRP. My credit union has a car buying service, 2 full time people, and they are saying that MSRP is the new normal. Above MSRP on in demand models isn't out of the question.

I just bought a "new" 2005 NISSAN TITAN from my Dad because I am not going to pay the new prices. It's only got 52K on it...and 1K of those was me driving it home from Kansas to Georgia yesterday.

 

[Dutch]

JT or anyone else in the Truck sales business, is there any light at the end of the tunnel? My current truck is getting some age and some minor but expensive things are cropping up. Would like to buy something new or less than a couple years old, but it is really expensive at the moment. When a basic Chevy or Ford crew cab truck costs 50k or more out the door, it is tough on the common guy.

I hear you.
Carvana offered my $36000 for my 2018 z71, thought about selling it as that was what I paid for it.
Looked at current truck prices and decided to keep it.