4 ms·

Pickups and SUVs with insane markups and profit margins. A Ford F150 Raptor's MSRP is something like $60-70k.

deleted 7y ago
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gruez 7y ago
>Pickups and SUVs with insane markups and profit margins. dumb question: why do pickups/suvs have insane markups/profit margins?
- itsaidpens 7y ago
  Think about this - the same amount of tech, of engineering, of “stuff” like window regulators, speakers, steering wheel, etc goes into a subcompact 4 door as does a 4 door SUV, minus cheap stuff like body panels interior carpet.
- rdtsc 7y ago
  There's a demand for them. SUV are quite popular for families who don't want to "drive minivans" but they still want a large vehicle to fit in everyone. Others buy it because of the perceived safety, larger vehicle so they feel more "protected". Trucks are just what you drive in rural areas. And there are a lot of small towns and rural areas. Companies noticed that people are shelling out $40k for them, so they started selling them for $50k. $50k and they are being bought still? Ok, time to charge $60k, and so on.
  - apta 7y ago
    > Others buy it because of the perceived safety, larger vehicle so they feel more "protected". It's not just perceived safety though. Heavier cars are objectively safer when crashing into a lighter car. IIHS did several tests on this. The fact that SUVs are higher means that they have an advantage if crashing head on with a sedan.
    - blackbrokkoli 7y ago
      It also means less safety for everyone, though. Especially pedestrians and people on motor(bikes) are endangered by heavier, bigger cars. Not counting emissions and climate change from moving a ton of decorative metal around.
      - apta 7y ago
        I don't disagree. But I don't see a better solution. Why would someone with a family take a risk for instance? I know that Volvo are taking safety very seriously, and want to have 0 fatalities (even pedestrians) sometime this coming decade. I think emissions can be improved with things like hybrid drive trains and electric motors.
- coredog64 7y ago
  Because that’s where manufacturers need to make money. These things typically have fuel economy numbers at or below CAFE standards, so they’re banking on these and selling more efficient vehicles closer to cost.
- megaremote 7y ago
  They have them because people are wiling to pay for them. People are willing to pay because they think they are worth it. I would guess that the fact they are bigger make people think they cost a lot more to build, when they do not.
- rconti 7y ago
  Because they can? As utility vehicles, they also tend to have really good resale value, so they might not be quite the poor 'investment' you imagine. Because the resale is good, margins can creep up. There's nothing holding them down.
- smnrchrds 7y ago
  At least some part of it, and perhaps a majority of it is due to chicken tax. Trucks in the US enjoy a level of protectionism few other industrial products do. US manufacturers, as a result, can increase their margins without losing market share to foreign competition. https://en.wikipedia.org/wiki/Chicken_tax https://en.wikipedia.org/wiki/Chicken_tax
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deleted 7y ago

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>Pickups and SUVs with insane markups and profit margins. dumb question: why do pickups/suvs have insane markups/profit margins?

itsaidpens 7y ago
Think about this - the same amount of tech, of engineering, of “stuff” like window regulators, speakers, steering wheel, etc goes into a subcompact 4 door as does a 4 door SUV, minus cheap stuff like body panels interior carpet.
rdtsc 7y ago
There's a demand for them. SUV are quite popular for families who don't want to "drive minivans" but they still want a large vehicle to fit in everyone. Others buy it because of the perceived safety, larger vehicle so they feel more "protected". Trucks are just what you drive in rural areas. And there are a lot of small towns and rural areas. Companies noticed that people are shelling out $40k for them, so they started selling them for $50k. $50k and they are being bought still? Ok, time to charge $60k, and so on.
- apta 7y ago
  > Others buy it because of the perceived safety, larger vehicle so they feel more "protected". It's not just perceived safety though. Heavier cars are objectively safer when crashing into a lighter car. IIHS did several tests on this. The fact that SUVs are higher means that they have an advantage if crashing head on with a sedan.
  - blackbrokkoli 7y ago
    It also means less safety for everyone, though. Especially pedestrians and people on motor(bikes) are endangered by heavier, bigger cars. Not counting emissions and climate change from moving a ton of decorative metal around.
    - apta 7y ago
      I don't disagree. But I don't see a better solution. Why would someone with a family take a risk for instance? I know that Volvo are taking safety very seriously, and want to have 0 fatalities (even pedestrians) sometime this coming decade. I think emissions can be improved with things like hybrid drive trains and electric motors.
coredog64 7y ago
Because that’s where manufacturers need to make money. These things typically have fuel economy numbers at or below CAFE standards, so they’re banking on these and selling more efficient vehicles closer to cost.
megaremote 7y ago
They have them because people are wiling to pay for them. People are willing to pay because they think they are worth it. I would guess that the fact they are bigger make people think they cost a lot more to build, when they do not.
rconti 7y ago
Because they can? As utility vehicles, they also tend to have really good resale value, so they might not be quite the poor 'investment' you imagine. Because the resale is good, margins can creep up. There's nothing holding them down.
smnrchrds 7y ago
At least some part of it, and perhaps a majority of it is due to chicken tax. Trucks in the US enjoy a level of protectionism few other industrial products do. US manufacturers, as a result, can increase their margins without losing market share to foreign competition. https://en.wikipedia.org/wiki/Chicken_tax https://en.wikipedia.org/wiki/Chicken_tax

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