Ford's Leadership and Financial Situation Effect On Bronco

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Stampede.Offroad

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BHShaman

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...as most of those metrics as a measure of economic health are misleading.
Absolutely right.
Masses of American's have been taught that a healthy DOW and NASDAQ mean everyone is doing well.
In other countries, everyone being able to go to the hospital without the risk of declaring bankrupt means their economy is doing well.
 

indio22

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Last month I bought a new 2020 Kia Soul for 14 grand. That is quite a bit less than the mentioned $37,000 average 2019 vehicle price. While government safety/emissions regulations have a cost, I don't think those regs are the main reason for high vehicle prices, because my Kia meets those regulations and was still low in cost.

My opinion:
1) For whatever reason, slapping "SUV" on a vehicle these days seems license to jack up prices.
2) Even though some gripe, the public has become more accepting of high vehicle prices - culture change.
 

indio22

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Also I compared the following:

My 1985 CJ-7 if purchased new was around 7 grand. Correcting for inflation, today it should cost around 17 grand. Yet the lowest cost current new Wrangler JL costs 28 grand. 11 grand difference is a significant increase over inflation.

On the other hand, a 1985 Ford Escort economy car, compared to my economy model Kia, cost around 6 grand in 1985. Corrected for inflation that comes to 14 grand. Which is what I paid for my Kia Soul. Lets add a few thousand because I got a good deal, but you get the picture.

Lower priced economy cars seem to have kept a better pace with inflation, while SUVs such as Wrangler have elevated. (And that's not even accounting for options which can launch Wrangler into the stratosphere.)
 

misanthrope

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The whole auto industry is slowly going through revamping, and product irreverence. It's all about adjusting towards: alternative fuels, ride-sharing, car-rental sharing, public transport etc. People in urban markets don't see a car as relevant anymore.
 

wjfawb0

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I paid $19k for a new 2002 Ford Mustang GT Premium. Today it's around $37k for a 2020 Ford Mustang GT Premium. However, the 2002 GT had 260HP. The 2020 has 460HP. There are a lot of nice features and government mandated crap in the 2020 like TPMS, ESS, etc. Prices have inflated, but the cars have also gotten a lot better and a lot worse (see government crap).
 

BroncoBuyer

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I paid $19k for a new 2002 Ford Mustang GT Premium.
I find that hard to believe with a msrp of over $24k that you got one for 19k
I paid over $26k for my 98 GT fully optioned with leather 4 years earlier brand new.
 

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I find that hard to believe with a msrp of over $24k that you got one for 19k
I paid over $26k for my 98 GT fully optioned with leather 4 years earlier brand new.
I've bought from these guys and gotten more of than 5 grand off (AWD 4cyl fusion, got about 7 grand off,
stickered 29800 and got it for 23,100). Also got 14 base, no option V6 stang for 5 grand off before my 14 GT
(only kept it 9 months, as it was black and that dream wore off quick).

Even if you add back 300 "processing" fee, your still at 7500 off and they honor that price.

https://www.koonssilverspringford.c...019-Ford-Mustang-GT+Premium-1FA6P8CF9K5174228
 

BHShaman

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Also I compared the following:

My 1985 CJ-7 if purchased new was around 7 grand. Correcting for inflation, today it should cost around 17 grand.
Sad part is year-over-year, you are NOT making anymore money than you were in 1985 if in the same position with just annualized adjustment.
So while the cost of the vehicle has doubled (inflation adjusted), your effect wage has not. So while Production has seem amazing advancement, that floor worker trying to buy the vehicle they manufacturer has to lay out 2x the cash more than they should.
 

paxfish

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Sad part is year-over-year, you are NOT making anymore money than you were in 1985 if in the same position with just annualized adjustment.
So while the cost of the vehicle has doubled (inflation adjusted), your effect wage has not. So while Production has seem amazing advancement, that floor worker trying to buy the vehicle they manufacturer has to lay out 2x the cash more than they should.
What we are ignoring in this conversation is the quality of the product we are buying now versus then. I bought my second bronco in 1980, a 1973 3 spd 302. Already the floors were nearly completely rusted out, along with the door posts, the tailgate, the windshield frame and the rear quarter seams. Back then every man was a mechanic out of necessity. Plugs, rotors, wires, fuel pumps, water pumps, alternators, exhaust systems, brakes all failed regularly. It was normal to replace any or all of that before 100,000 miles. Some of them twice.

That 302 WAS excellent - all 137 hp of it. But 8 years after the Bronco was new, you're already looking through Duff's catalog for a new fiberglass body. I still love that truck - I've had four EBs over the years. But the 88 Bronco II we had was a far superior vehicle. The 92 F150 and 93 Lightning even better. Our current '13 F150 EB is amazing having only one failure - a coil pack at 82000 miles.

Now we are contemplating a new Bronco, with all the capability we loved back then but with extraordinary mechanical durability for maybe double the cost in real dollars.

Take my Money!
 

wjfawb0

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I find that hard to believe with a msrp of over $24k that you got one for 19k
I paid over $26k for my 98 GT fully optioned with leather 4 years earlier brand new.
I bought it from Bill Collins Ford in Lousiville, KY with a ~$2,500 rebate and the x-plan due to a cousin who works for Ford. Two years later I bought a 2003 Cobra for $31k when Ford started selling SVT cars with rebates for the first time around Labor Day 2003. I also used an x-plan on that car as well. Dealership tried to screw me and not sell it on x-plan several times. I traded in the GT for $14,000 with 46,000 miles and they had it on their lot next week for $19,900.
 

BHShaman

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What we are ignoring in this conversation is the quality of the product we are buying now versus then.
We're talking about Productivity vs Wages.
With Productivity SHOULD come savings through efficiency.
With improved productivity should come more profit.
WIth more profit should come higher wages.

This last part is missing.

Which, regardless of how much longer the vehicle last, is the reason that people take 7 year loans.
Maybe those vehicles now last 15 years instead of 10, but now many people have 7 year loans instead of five.
So, they are still paying on a loan for 1/2 the life of the vehicle, but they are paying TWICE as much (wage to cost) as they would have a couple decades ago.

productivity-vs-wages-2012.png
 

JimmyDean

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We're talking about Productivity vs Wages.
With Productivity SHOULD come savings through efficiency.
With improved productivity should come more profit.
WIth more profit should come higher wages.

This last part is missing.

Which, regardless of how much longer the vehicle last, is the reason that people take 7 year loans.
Maybe those vehicles now last 15 years instead of 10, but now many people have 7 year loans instead of five.
So, they are still paying on a loan for 1/2 the life of the vehicle, but they are paying TWICE as much (wage to cost) as they would have a couple decades ago.

productivity-vs-wages-2012.png
this is such a depressing chart, every time I see it.
 








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