$89,000 for a new diesel pickup, how is it going to pay for it's self ?

[JDgreen227]

I began my career back in '71 and earned $3.31 an hour, after 31 years I was up to $19.78 when I retired, Could have made more hourly wages at GM but the benefits were really good where I was and I was always on first shift.

 

[brain55]

Hmmmm, my first job out of trade school in 1985 paid $4/hr. My last job when I left in 2009 was $38/hr. Now being self-employed at times it feels like I'm closer to $4/hr. Lol

Brian

 

[dave1949]

It's a lot more complicated than comparing wages to truck costs.

To get an accurate picture of increasing or declining cost of truck ownership in terms of hours worked to pay for that ownership, the total truck service miles divided by the cost of ownership (excluding taxes & fees, financing) would be a good starting point. The fuel, repair and maintenance costs would need to be expressed in constant dollars (inflation adjusted), perhaps pegged to the truck model year, as would the wages earned over the truck ownership lifetime.

Wages are very tricky because they can change due to normal raises, or due to changes in responsibility, training, advancement/promotion, layoff, downsizing, outsourcing, etc.

The goal would be to end up with something like a number that expresses (miles of use X cost per mile) / the value of one hour of work. If that number were compared to trucks built three years apart over a 30 year time span for example, trends would be evident.

It's definitely yet another example of where the advice of an economist is needed, if Steve happens to be reading this thread.

Add: All of that completely ignores the intrinsic value of the truck; higher payload, AC, self-locking doors, more comfort. A monetary value would need to be assigned to those types of things too. Plus, I don't know how the residual value of the truck should be handled in the comparison. Is a truck with 200K miles today worth more than a truck with 200K miles 30 years ago, in constant dollars?

 

[ultrarunner]

The economics in the SF Bay Area are again getting crazy...

The house next to my 1700 square foot 1956 home was built 12 years ago and sold 9 years ago for 1.3m... later it went into foreclosure with multiple bids and sold 2 years ago for 800k... now it's in Escrow for 1.4 million.

600k profit in 2 years and not so much as even painting the place... the couple that live there now are in their 80's and move around the country buying property and then selling every couple of years... the wife said they are gypsies and have made a fine living just moving... Texas, Colorado, California and now Oregon.

Just seems strange a person can make almost 10 years of wages just buying and selling one home in 24 months time.

I'm getting to think a working person has little chance of ever getting ahead...

I'm seeing plenty of high end trucks and lots of 80k Tesla sedans to know there are plenty of folks with money.

 

[fordmantpw]

Yes taxes. 15% here. 13% in Ont.

Ouch! That's ludicrous!

 

[3930dave]

Ouch! That's ludicrous!

It works well for the border States, as many Canadians supply foreign aid (aka cross-border shopping).

I've made more than one trip myself for auto parts, as often the exact same part is half price down your way (n.b. - I'm talking about regular retail pricing, not a USA Sale price). That's doubly ironic, as many of those parts are often made in the province that I live in.

But yes, it's pretty ridiculous up here - even with our dollar at par, often high end vehicles are $10,000 more, taxes are high, and unless you are dumping a vehicle off-lease, once you need to repair something, parts prices are ridiculous.

Can't imagine why fewer young people are driving these days.....

Whine Off

Rgds, D.

 

[Diamondpilot]

Ouch! That's ludicrous!

It's all that free health care. Just wait, it's coming to a country near you!

Chris

 

[Gary Fowler]

Anyone paying that amount for a pickup truck isn't expecting it to pay for itself. No business needs that many luxury items on a work truck which is where about $40-50 K of that amount comes from.

 

[brain55]

Anyone paying that amount for a pickup truck isn't expecting it to pay for itself. No business needs that many luxury items on a work truck which is where about $40-50 K of that amount comes from.

For a crew truck I agree. But but for an owner/operator or somebody like me, that can spend more time driving than working on many days, creature comforts become more important. If I'm beat up from driving all day and I get that late afternoon call, I may not go do it because I don't want to get back in the truck. Obviously those things need to be weighed out. The truck I'm about to order, I made it very clear to the salesman my comfort is a priority. Clearly the amenities in the type of truck I'm getting doesn't rival a luxury SUV or pick-up, but they still add up.

Brian

 

[3930dave]

For a crew truck I agree. But but for an owner/operator or somebody like me, that can spend more time driving than working on many days, creature comforts become more important. If I'm beat up from driving all day and I get that late afternoon call, I may not go do it because I don't want to get back in the truck. Obviously those things need to be weighed out. The truck I'm about to order, I made it very clear to the salesman my comfort is a priority. Clearly the amenities in the type of truck I'm getting doesn't rival a luxury SUV or pick-up, but they still add up.

Brian

Luxury - a material object, service, etc., conducive to sumptuous living, usually a delicacy, elegance, or refinement of living rather than a necessity.

Luxury vs. necessity.... depends who you ask..... if someone has a high tolerance for heat, they may consider AC in a vehicle to be a luxury. Most people consider AC a necessity today, even in many parts of Canada.

From a business standpoint, what makes sense is paying for higher functionality - to your point about making One More Call, that day. Anyone who has driven a lot (even recreationally) understands the value of a really good driver's seat. Paying for better seating ergonomics (or even something like Bose's) has various benefits to the business.

Do ergonomic seats need to be covered in tooled leather ? Do you need to have the latest Schnitzergruber 9000 Auto-Sync interface on the Infotainment system ?

Depends who you talk to, as to where they draw the Bling line, vs. functional improvement.

Rgds, D.