Can anyone afford new trucks?

Why is everything so expensive now (especially trucks)?

Author

Bernardo Montes de Oca
March 12, 2024

Every three days, or so, I get a call from my neighbor. He’s selling a 1965 Chevrolet Corvair and is “sure that I’ll love it as a project.”

While it’s a fascinating car, it’s not up my alley. However, it got me thinking of the Corvair’s tarnished legacy.

Ralph Nader’s book did irreparable damage, but the Corvair wasn’t “unsafe at any speed,” especially after 1965. It handled just like any other car of the era. This goes to show the power of the press.

Speaking of how the masses can react, let’s discuss truck prices over the years and their fascinating evolution.

Key Takeaways

Don’t have much time? Here’s the summary of what we’re talking about:

  • New truck prices have skyrocketed, with luxury and demand driving costs to new highs. The pandemic further exacerbated this trend, causing a significant price surge, though a minor reduction has occurred recently. Despite nostalgia for past affordability, adjusted MSRPs confirm that trucks are more expensive today, making used trucks an attractive option for budget-conscious buyers.

  • Here are the Ford Explorer years to avoid, helping potential buyers steer clear of less reliable models.

  • A step-by-step guide on removing a ball joint without a press, catering to DIY enthusiasts seeking to tackle one of the more challenging aspects of vehicle maintenance with limited tools.

KERN’S CORNER

Why Trucks Cost More Than Ever!

Picture this: you casually drop by a dealership and check out the prices on new trucks. Then, with the same casual pace, you walk away. Yes, that truck costs $70,000, or maybe more.

While it’s true that most cars are becoming more expensive, truck prices have skyrocketed. So, as you drive back, you wonder: why is this happening?

If you’ve had this question, you’re not alone. The internet is flooded with articles discussing how trucks have become incredibly expensive and, from the outside, for a good reason.

Demand for trucks has increased considerably, especially in later years. People are ditching sedans, minivans, and even SUVs and changing them for the versatile pickup truck that’s now more comfortable and luxurious.

At the same time, manufacturers have increasingly improved them, with plenty of investment in research and development. Gone are the days when trucks were merely for work.

Now, trucks are some of the most luxurious vehicles you can buy. Such an evolution has directly impacted the price. It’s the expected result of supply and demand, and manufacturers know this. People want their trucks and are willing to pay for them.

The question now is: Has this demand made them unbuyable? According to Yahoo, we might not be able to buy them in the future. We wanted to answer this question and did some research.

We took one of our trucks, the Chevy Silverado, and analyzed how its MSRP evolved through the years. The following chart shows the low-end and high-end MSRPs and how they’ve changed over time.

As you can see, the vehicle’s entry-level MSRP is somewhat constant, with noticeable variations during the 2008 Crisis and the Pandemic. This makes sense, as some people still want to buy the basic version for work and don’t want or need expensive upgrades.

However, the higher-end MSRP is a different story. 2014 marked a radical change in price, with a 13% increase in the high-end MSRP, thanks to the Silverado’s new generation and the public’s demand for more luxury in their trucks. Prices went from $43,385 in 2013 to $49,180 in 2014, and they wouldn’t slow down for years to come.

Manufacturers understood that the money was in the extra features, and they could charge whatever they wanted because people love trucks and are willing to pay for them.

After the pandemic caused panic within the automotive industry, an increase was even more unsurprising. Car prices went through the roof, and it’s only now that they’ve dropped slightly.

So, how expensive would it be to buy trucks of the past in today’s money? To answer this, we averaged the MSRP (meaning averaged the low and high MSRP to provide an estimate) and compared it to today’s price. Granted, it’s a rough approximation but one that gives us fascinating results.

The image below shows the average MSRP over the years calculated in today’s dollars and how it behaves compared to the reference point, $53,350, the Silverado’s average MSRP in 2024.

Trucks are more expensive today and by a lot. We also see the impact of the pandemic on automotive pricing and the subsequent normalization of prices. So, it is true that trucks were “cheaper back then.” Judging by the behavior, it won’t change soon, but perhaps, the chaos of 2020 is gone.

That’s where used ones come into play. Finding one in excellent condition could be a game-changer for those who want a truck but can’t afford a new one. That’s why we came up with the list of the used trucks you should buy, and yes, we include the Silverado

Let us know your buying experience and whether you think prices will come back down to earth.

BEST AND WORST

What are the Ford Explorer years to avoid?

The Ford Explorer has made a name for itself as a versatile SUV with plenty of room and towing capacity. However, not all Explorers are created equal. This article covers the Ford Explorer years you should avoid!

TIPS AND KNOW-HOW

How to remove a ball joint with a press!

Removing a ball joint can be one of the most challenging steps if you don’t have plenty of tools. But, don’t worry. We’ve got you covered with this guide on how to remove a ball joint without a press.

NEWSBITES

Every week, we scour the web for the most essential news. Here’s what you need to know this week:

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