For those of us who have wondered if those overpaid assembly line employees are causing the price of our cars and trucks to go up.

Well, not really true. From today's Wall Street Journal.

 

I'm not convinced the prices of trucks has really gone as much as we think when comparing apples to apples and factored for inflation.

This photo was taken in 1995, I bought the truck new in 1985 for $10,700. It is a pretty basic truck with the 4.9 I-6 engine, 4 speed, and 4X4. About the only options were a radio with casette player and AC. The same truck with an automatic and a few options would have been over $12,000



$12,000 in 1985 is worth over $27,000 today factored for inflation. The closest thing Ford sells today would have a sticker of about $31,000 and a realistic price of about $29,500 according to KBB.

Most people long for the good old days when trucks were cheap, then buy loaded up Supercrew's and compare the $60,000 stickers to basic regular cab trucks of 30-40 years ago. Considering how much better even a basic 2017 is compared to the basic 1985 the prices just ain't that much more.

 

I think you nailed it. Most trucks today are a FAR cry from a basic single cab long bed true bench seat with AM/FM radio.

At the same time, Ford does overcharge for all the bells and whistles that they add. I don't remember the numbers, but the profit margins on the higher trims is a lot better than on the lower trims.

 

"Number of hours worked" is a relative term. lol Also consider what vehicles and the number of vehicles are produced in the U.S. versus lower wage countries. AND the comparison is labor costs based upon wages (don't know if that considers all the benefits) versus incentives. Incentive is "expendable profit margin" as far as I'm concerned.

Content is the key and demand for content and vehicle type trumps everything else. High end SUV's, trucks, etc. are a car makers cash cows and their margins are VERY high simply because people will pay what they're asking.

 

LOL, I was being too subtle, I think.

My post is actually a reply,and dig, to the people that blamed high vehicle costs on those damn assembly line workers, in several other threads.

Obviously not true.

 

Wish my paycheck increased like inflation did..

 

I know that vehicles are an easy target because everyone pretty much has one and besides a house they are the most expensive purchase we make, but look at just about anything and compare the price 20 years ago to today. To be fair, consider all of the variables involved - for example if you look at something electronic/technological take into account the reliability and the capability of today versus then.