5 ms·
Pickups are a bad example. They follow the medical/college model when it comes to sticker price vs actual price. There's 5k-10k of noise in your pricing data
by dsfyu404ed 8y ago
Pickups are a bad example. They follow the medical/college model when it comes to sticker price vs actual price. There's 5k-10k of noise in your pricing data at any given time.
- lawnchair_larry 8y agoWhat model is that?
- dsfyu404ed 8y agoBasically everything that isn't made by Toyota (I don't know why they don't do this but they probably have a reason). Pretty much nobody pays sticker price on new pickups. At any given time there's discounts of 5-10k on any given model and if there's not a hefty manufacturer discount on the particular set of options you want then you wait a month or choose a nearly identical one you can get the rebates on. The sticker prices aren't really indicative of anything. They're like the "normal prices" on products that are perpetually on sale.
- lawnchair_larry 7y agoSorry, I meant what is the “medical/college” model.
- neogodless 8y agoThey are a bad example of what, exactly? Almost all cars have differences between sticker price compared to what you can negotiate as the purchase price. In some cases, you'll pay more than MSRP because of limited inventory and popularity. In other cases, you can easily pay less.
- dsfyu404ed 8y agoThey're a bad example of pricing trends. The OEM might kick up some option by $500 but they turn around and run $1k more rebate on everything. Is that a $500 increase or a $500 decrease? >Almost all cars have differences between sticker price compared to what you can negotiate as the purchase price. In some cases, you'll pay more than MSRP because of limited inventory and popularity. In other cases, you can easily pay less. Only pickups routinely have manufacturer rebates in the $10k range. These are manufacturer rebates paid by the OEM. You either qualify or you don't, no haggling needed. We're not talking about small differences, we're talking about changes as high as 20% (10k off a 50k truck), sometimes more. Other vehicles do not have that massive error bar tacked on to their price over time graph.
- neogodless 8y agoI don't think pickups fail to exhibit typical pricing behavior. The big difference here is scale. Pickups have traditionally healthy profit margins, and as such, the dealerships (and manufacturers) have the most flexibility in deviating from the MSRP to move product. My guess is that manufacturers enjoy and encourage this margin and the apparent rapid inflation of pickup truck pricing. In other words, if MSRP keeps going crazy, even though savvy shoppers can purchase a truck for way less than MSRP, the general consensus is that they are more expensive than before, and you'll have to spend more than you did last year and the year before. People throw around "spending $50k on a truck" all the time, and while it's true that you can probably get a brand new crew cab with decent trim for $35k (and feel like you got a super good deal), the perception of truck prices has been inflated over time. But back to the original raise/lower prices, we still see the same thing with trucks as with other classes of car. The price is increased each model year. The trim levels are tweaked. Options are bundled. Rarely does a manufacturer announce a big drop in pricing, or a spur of the moment increase.
- Latteland 8y agoGee, sounds like tesla pushing prices up or down all the time.