Jacking truck prices up.

[Tennesseahawk]

Just got off the phone with FYDA. The T-300 they are selling on truckpaper is the same truck that's been advertised here for 25,000. The new price? 34,900.

A few months ago, a local guy was selling a 2007 Argosy straight truck for 35,000. Ellenbaum bought it, and it's new price is 58,900!!!

Talk about a markup!!!

I'm all for the free market. But I hope these trucks rust on the lot.

However, it's not only these two businesses that arbitrarily over-inflate prices. Individuals do as well... especially if they're willing to do lease-purchases. I called on one who had posted on EO. The guy was wanting 30,000 for a truck that had over a MILLION miles on it! Talk about preying on the desperate!

Bulldog is a weird one. You call them up, ask for a price, and they tell you "we don't work that way". I understand. You want to run my credit report, and tell me I'm approved for 50,000 before you tell me your truck is 49,900. Gotcha.

Are people either that stupid, desperate, or both to get caught in these predatory games?

 

[greg334]

They see an increase in people getting into this business and is poised to make up for the loses they incurred from the past two years. Got to give them that but so far, the price of trucks I've seen have been steady outside of this niche market.

I'm wondering if this work is going to support the rates or will we see another round of rate dips in the near future if we have a crap economy in 2012?

 

[Tennesseahawk]

Sorry... this should've gone in the general forum.

 

[greg334]

Sorry... this should've gone in the general forum.

That's alright, our great moderators will move it soon enough.

Who's brother?

 

[OntarioVanMan]

That's alright, our great moderators will move it soon enough.

Who's brother?

Thank you Greg.......

 

[BillChaffey]

Who offers incentives on used trucks?.

 

[jelliott]

Well I think the influx of new expediter straight trucks into the market has been very few the last few years. On the positive side current owners should see their residual or trade in values be almost equal to what they were a year or two ago as the market for used equipment gets stronger.

 

[jelliott]

I have seen it on our company trucks and trailers. We are getting almost the same trade in numbers now that we were offered on the same equipment a year ago. My point was the "good" side of the coin was that the current equipment that owner operators own has probably not dropped in value much over the last year, because of the supply in demand factors on used equipment. That is good for the current equipment owners, not as good for people just getting in to the business.

 

[jelliott]

But aren't your drivers owner operators? Why would you own trucks in the first place?



Posted with my Droid EO Forum App

My expediters are primarily all owner operators, we have 2 local company straights that do cartage/contract work. I own about 50 company tractors and all of our trailers are company owned. So I watch and read on the equipment market a good bit.

 

[cheri1122]

Just got off the phone with FYDA. The T-300 they are selling on truckpaper is the same truck that's been advertised here for 25,000. The new price? 34,900.

A few months ago, a local guy was selling a 2007 Argosy straight truck for 35,000. Ellenbaum bought it, and it's new price is 58,900!!!

Talk about a markup!!!

I'm all for the free market. But I hope these trucks rust on the lot.

However, it's not only these two businesses that arbitrarily over-inflate prices. Individuals do as well... especially if they're willing to do lease-purchases. I called on one who had posted on EO. The guy was wanting 30,000 for a truck that had over a MILLION miles on it! Talk about preying on the desperate!

Bulldog is a weird one. You call them up, ask for a price, and they tell you "we don't work that way". I understand. You want to run my credit report, and tell me I'm approved for 50,000 before you tell me your truck is 49,900. Gotcha.

Are people either that stupid, desperate, or both to get caught in these predatory games?

The supply of desperate people has been steadily increasing, as job opportunities decrease, and the supply of stupid people is constantly replenished - but some are not particularly either, they're just not wise to the many ways they can be cheated. Honest [but inexperienced] people are the easiest to trick, cause they're generally not looking for it, and don't know what to look for anyhow.

 

[jelliott]

Just got off the phone with FYDA. The T-300 they are selling on truckpaper is the same truck that's been advertised here for 25,000. The new price? 34,900.

A few months ago, a local guy was selling a 2007 Argosy straight truck for 35,000. Ellenbaum bought it, and it's new price is 58,900!!!

Talk about a markup!!!

I'm all for the free market. But I hope these trucks rust on the lot.

However, it's not only these two businesses that arbitrarily over-inflate prices. Individuals do as well... especially if they're willing to do lease-purchases. I called on one who had posted on EO. The guy was wanting 30,000 for a truck that had over a MILLION miles on it! Talk about preying on the desperate!

Bulldog is a weird one. You call them up, ask for a price, and they tell you "we don't work that way". I understand. You want to run my credit report, and tell me I'm approved for 50,000 before you tell me your truck is 49,900. Gotcha.

Are people either that stupid, desperate, or both to get caught in these predatory games?

The supply of desperate people has been steadily increasing, as job opportunities decrease, and the supply of stupid people is constantly replenished - but some are not particularly either, they're just not wise to the many ways they can be cheated. Honest [but inexperienced] people are the easiest to trick, cause they're generally not looking for it, and don't know what to look for anyhow.

Sad but true. I am sure we will see more of the bound to fail finance plans coming back on the market too.

 

[purgoose10]

There is a shortage of used equipment in certain classes. Some models because they last longer and manufacturers are making less of that model. The expedited market for trucks is to small to make a difference in shortages or pricing.

I might ad. Everything in the free market economy is based on supply and demand. Just like freight capacity and the availablity of equipment. More freight than trucks, more money for us. To bad it doesn't happen very often.

 

[ATeam]

Just got off the phone with FYDA. The T-300 they are selling on truckpaper is the same truck that's been advertised here for 25,000. The new price? 34,900.

A few months ago, a local guy was selling a 2007 Argosy straight truck for 35,000. Ellenbaum bought it, and it's new price is 58,900!!!

Talk about a markup!!!

I'm all for the free market. But I hope these trucks rust on the lot.

Why do you hope the trucks rust on the lot?

If you had a truck to sell, would you not act the same and charge as much as the market will bear?

Say you bought a truck for $35,000 and because of market changes could now sell it for $50,000. Say also that you wanted to sell the truck? Would you price it at $50,000 or $40,000? If it would sell at either price, which price would you charge?

If it was me, I'd charge $50,000.

 

[scottm4211]

I agree with Phil. The market decides the worth of anything.

 

[Tennesseahawk]

I agree with Phil. The market decides the worth of anything.

That's fine. The market decides the worth. But these trucks are so over market rate, that I hope they sit and rust, if the owners don't see they're price gouging.

Phil may not be in the market for a truck, so he might not look-see on truckpaper at what's going on... or even on EO. I do... even when I have a truck, just to see where the market is going. And it's usually the same players of the game where I facepalm, because a truck is so ridiculously priced.

There's fair, then there's "bend over!"

 

[scottm4211]

Those type of dealers customers are typically of the "If you can get me bought...." variety. And the vehicles usually end back there on the hook after a few months

 

[cheri1122]

Why do you hope the trucks rust on the lot?

If you had a truck to sell, would you not act the same and charge as much as the market will bear?

Say you bought a truck for $35,000 and because of market changes could now sell it for $50,000. Say also that you wanted to sell the truck? Would you price it at $50,000 or $40,000? If it would sell at either price, which price would you charge?

If it was me, I'd charge $50,000.

Hawk's outrage isn't directed at someone whose truck is worth 50k due to market changes, though - it's because the truck was selling for 35k, when a dealer bought it and the new price is ridiculously inflated. Markets don't change that much in such a short time, and the dealer may have added improvements, but if someone pays the 'new' price, they've most likely been fleeced.
If the truck rots rather than sells, greed loses.

 

[Tennesseahawk]

Hawk's outrage isn't directed at someone whose truck is worth 50k due to market changes, though - it's because the truck was selling for 35k, when a dealer bought it and the new price is ridiculously inflated. Markets don't change that much in such a short time, and the dealer may have added improvements, but if someone pays the 'new' price, they've most likely been fleeced.
If the truck rots rather than sells, greed loses.

By George, I think she's got it!

 

[ATeam]

I guess I see it as more straightforward. A dealer is in the business of selling trucks. When he or she gets a used truck to put up for sale on the lot, it has to be priced. The dealer can price it at $40,000 and it will sell, or the dealer can price it at $50,000 and it will sell. To me, it is a simple financial decision. Price it at $50,000 and maximize the dealer's profits.

Morality enters in to the extent that the truck is actually in the condition it is advertised to be, warranties (if any) are honored, the price is as truly advertised, etc. Standard fair-dealing stuff.

Beyond that, what obligation does the dealer have?

A dealer might even put the truck up for sale at $60,000 for the first couple weeks to see if it will sell at that price. What's wrong with that?

 

[ATeam]

Hawk's outrage isn't directed at someone whose truck is worth 50k due to market changes, though - it's because the truck was selling for 35k, when a dealer bought it and the new price is ridiculously inflated. Markets don't change that much in such a short time, and the dealer may have added improvements, but if someone pays the 'new' price, they've most likely been fleeced.
If the truck rots rather than sells, greed loses.

In the scenario you present, what price should the dealer set so as not to be deemed greedy and so as to not fleece the buyer?

More to the point, who gets to decide that the dealer is in fact greedy and is fleecing the buyer? Injecting moral judgements into a financial transaction complicates good business decision making, I think.