Is High MSRP on Pickups a Marketing Game?

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It is my impression that the MSRP on domestic pickup trucks is surprisingly high and artificially inflated, much more than on cars and SUVs.

Is this a marketing game, so that pickup truck buyers can feel good about getting a huge discount off MSRP?

Does anyone pay anywhere near MSRP on a pickup?

It is not unusual to see ads in the local newspaper advertising $5000 to $12,000 in rebates and incentives on a pickup from Ford, GM, or Ram. Does Toyota play this game also?
 
In my state one pays excise tax on a percentage of MSRP so it's actually a bummer for me.

Though my town hall is cool, if a F150 goes from a $19k work truck to a $65 cowboy cadillac I wind up paying the $19k rate.
 
Ever wonder how many people pay list price or above for their new vehicle?
 
Originally Posted By: CT8
Ever wonder how many people pay list price or above for their new vehicle?
Lots of "gottahavits" out there.
 
The most [censored] thing I see on truck pricing is $7000 or something ridiculous like that to go from RWD to 4WD.

No, it does not cost you that much. You're probably making a 500% profit on 4WD systems.
 
Local dealer has 2014 F-150's advertised as being marked down $11,000... and that's before any negotiation.

I was on a GMC dealer's lot last weekend, and they had a 2015 Sierra 3500 Extended Cab Dually priced at $34,700. Granted, it had painted wheels, but that seemed like an absolute bargain, compared to the $40,000 (and up) 1/2 tons that were sitting all around it.
 
Dealers play a lot of ridiculous games. I know, my grandson works for one and my BIL is a retired Nissan new car salesman.

Here is my negotiating strategy:

For new vehicles I make an offer that is 85% of asking price.

For used vehicles, I check with Kelly book, etc. and I make an offer that is 9% below their asking price and they usually take it.
 
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Originally Posted By: CT8
Ever wonder how many people pay list price or above for their new vehicle?


It would be interesting to know.
 
In selling new vehicles, automakers make the most profit from Pickups and SUV's and very little profit from cars. But overall profit, dealers make the most from parts and services and used vehicles.
 
I think the vast buyer pool coming from all walks of life/demographics they price them like jewelry. As evidenced by sales it seems to work very well.

My brother in law in car sales says the profit to dealer is the most on the mid to heavy loaded pickup trucks.
 
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Originally Posted By: cptbarkey
obsess over more important things in life.
This seems to be one of the important things in life.
 
truecar.com, and I think kbb.com can both help answer what, on average, and the spread, people are paying for a car truck suv.
 
When I bought my truck, I went to find a 4x4, gas powered, crew cab XLT. Of course all they had on the lot were diesels. The few gassers they had were bare bones work truck single cab or ext cabs. After running all the numbers, with rebates on upper trim levels and the diesels, it cost more to order what I wanted than it cost to get more than what I wanted in a diesel lariat that was an out-going model year. It stickered at $57k and I got it for $45k.
Were I work we still get bare bones work trucks for under $20k that sticker in the upper $20's.
 
Probably helps with financing. The rebate serves as a down payment or helps pay off the upside-down trade and the buyer is on the hook for a new set of payments and the metal moves.
 
Originally Posted By: HerrStig
Originally Posted By: CT8
Ever wonder how many people pay list price or above for their new vehicle?



Lots of "gottahavits" out there.


This is the truth!
 
Originally Posted By: CT8
Ever wonder how many people pay list price or above for their new vehicle?


Many are more concerned with getting financed than about getting the best deal.
 
Originally Posted By: javacontour
Originally Posted By: CT8
Ever wonder how many people pay list price or above for their new vehicle?


Many are more concerned with getting financed than about getting the best deal.


Agreed. I was out working in the shop Friday and had the radio on tuned to an oldies station out of Des Moines. I heard a number of car dealer commercials and not one mentioned the price of the vehicle-every single commercial touted the monthly lease or payment amount. I can't imagine getting suckered into payments, or worse yet a lease. Yet I'd venture to guess that the majority of the pickup buyers today are either slaves to payments or leases.
 
Originally Posted By: mrsilv04
Local dealer has 2014 F-150's advertised as being marked down $11,000... and that's before any negotiation…………..


That definitely sounds like a marketing game.
 
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