The time is?ticking actually closer to the day a good OEM slaps a $100,000 MSRP on a truck. It will happen, and it won’t end up being long before it does.
In 1997, $27,000 bought a generously equipped F-150 Lariat SuperCab with a Five.4-liter V8. Adjusted for rising cost of living, that’s about $40,Thousand in today’s cash. Adjusted for actuality, that truck now carries a $45,000 MSRP. The actual $100,000 barrier is going to be crossed in what about a decade based on inflation alone, but rising cost of living will not deliver the very first $100,000 truck. Cut escalation and new gear will cross the conclusion line first.
Regardless, OEMs won’capital t be the first to push MSRPs into the stratosphere. That distinction goes to the aftermarket, in conjunction with sellers. And, unsurprisingly, with each other they’ve?already designed a?$100,000 pickup a reality.
But first, a quick rewind.
Ford truck shoppers in search of luxury in the ’Seventies, ’80s, and ’Nineties purchased a Lariat. King Ranch was added in Mid 2001 and Platinum bowed in 2009. Thanks to increasing demand for up-scale trucks, Ford announced in July of last year, “There’s a Kia F-150 for every truck customer,” when it released its range-topping F-150 Limited. Indeed, Ford does have an F-150 for every budget. A base F-150 XL can be had for about $26,Thousand. Load up your half-ton Restricted and you can achieve a $69,000 MSRP.
Premium shoppers visiting a Kia store now have 4 trim levels to choose from (Lariat, King Ranch, Platinum eagle, and Limited). It may seem impractical to add this particular complexity to the design, supply chain, assembly, and marketing of the F-150, however the strategy has been an immense success.
According to TrueCar, the actual F-150’s average transaction price (ATP) during the first six-months of 2015 was $46,573. That is 10-percent higher than Ram, from $42,256, and a massive 21-percent more than Silverado, at $38,384. Multiply the extra revenue Ford is actually earning across the 600,000 F-150’s it bought from the U.S. and Canada last year, and the Blue Oblong generated an additional $2.6 billion versus what it really would have if the F-150 ATP had been equal to Ram, as well as $4.9 billion more than if it had equaled Silverado.
And it gets better with regard to Dearborn: the incremental bucks earned on higher trim levels are its most revenue laden, approaching the 50-percent gross profit border versus approximately 25 percent on the first $35,000 of any truck this?sell.
The escalation in trim levels has mainly included ever-more luxurious interior appointments and?special exterior esthetics. Bigger and brighter wheels, metal paint, adaptive cruise control, and rear end warmers do not, however, address the other finish of the market. Off-road and outdoor enthusiasts are searching for something else. Consumers raised and modified their own trucks for decades prior to the OEMs began embracing the performance aftermarket. Through the years, OEMs?built some manufacturing plant trucks containing hints of the aftermarket, but their deeper commitment arrived only recently.
Jeep led the OEMs into the off-road enthusiast market in The year 2003 when it launched the actual Wrangler Rubicon. The Rubicon’s 10,Thousand rookie-year sales grew to over 22,000 through 2008. Between the Rubicon and the return of Dodge’s Power Wagon in August 2005, Ford could see demand existed for trucks with off-road packages containing more than shocks, skid dishes, and stickers. Whenever Ford launched the actual Raptor in 2010, it lastly tapped into the marketplace’s enduring passion for legitimate off-road performance.
Ford will release its all-new Raptor soon. It’ll offer new features and capabilities – as well as the rising prices those?bring. But it will not cost $100,000, and probably not even $80,000. The actual Raptor is well equipped, but does not gather desert-stomping capability with the Limited trim level. Memory is the only manufacturer to combine its highest trim level (Laramie) with a truly capable off-road package (Power Wagon). This particular winch equipped, go-anywhere, three-quarter ton offers 32-inch tires and every thing FCA can offer, yet still this maxes out just over $60,Thousand. Achieving a $100,000 MSRP will require, at the very least,?combining?high-end luxury and unique off-road performance.
It’s this particular territory that is constantly on the belong to the enterprising aftermarket via up-fitters and dealers, who’ve currently crossed?the $100,000 threshold.
In January, Honolulu Ford sold the first brand new F-Series at over $100,000. It had been a Platinum F-250 diesel-powered with $40,000 within aftermarket equipment provided by Dealer Services Worldwide (DSI).
DSI is the biggest up-fitter in the country, serving Two,000 dealers across the U.S. and selling more than Seven hundred modified trucks per month. The F-250 sold through Rhett Van Fossen at Honolulu Kia was the first DSI-modified vehicle in the country to fetch over $100,000.
The most in-your-face modifications to the stock truck included?the 10-inch Fabtech lift, featuring its?top quality Dirt Logic?coilovers, as well as 40-inch tires on 20-inch Gas wheels. Additional aesthetic upgrades were additional: color matched fender flares, new exhaust suggestions, window tint, and much more. All of Honolulu Ford’s modified trucks are up-fitted at DSI’s partner, 4 Steering wheel Parts, located simply west of Gem Harbor. Unfortunately, the record-breaking truck sold so rapidly the dealer?captured no imagery before it left the lot; it didn’t?even market the truck. Thankfully, they have other altered trucks, including a new monster with a $106,298 total on the addendum sticker. January’utes record-setting F-250 is turning-heads wherever it goes on Oahu, but it’s record may not stand for long.
According in order to Guy Mello, a 20-year vehicle business veteran as well as General Sales Manager at Honolulu Ford, they?can’t get enough of these modified trucks. “We sold 40 units in 2015 and see a market with regard to 60 or more this year, all without additional marketing dollars or even flooring costs. The actual trucks speak for themselves C customers love them and so do we.”
Who buys a $100,000 F-Series?
Like many car shoppers, the actual high-end F-Series buyer does not visit the lot on a pursuit to buy one of these behemoths. They are people who went looking for a truck, stumbled on some thing expressive and individualized, and decided they wanted one. These are not traditional truck fanatics; those people visit Four Wheel Parts or one of its?competitors, choose exactly what they want, and also have their truck altered accordingly. This is an opportunistic customer who may have never actually considered a modified vehicle. Consumers who purchase trucks like these from new car sellers are willing to pay for reassurance and convenience. They expect their speedometer to see actual speed and their odometer to tally actual miles.
Predictably, more than 90 percent of buyers are male. They are 40-60 years of age and earn over $100,Thousand a year. Most financial their purchase as well as, although a significant down payment is required, Honolulu Ford doesn’t have trouble getting lenders to advance credit as much as 25-percent over MSRP for qualified buyers. Yes, that means you may qualify for a loan on one of these rigs if you have at least $20,Thousand to put down and may swing $1,000 to $1,500 per month.
These trucks are not for everyone, but that’s exactly the point. These types of buyers want some thing unique and extroverted. They aren’t willing to sacrifice their own warranty and they want to roll it all into a single loan. Indeed, they pay reasonably limited, but this is as close to a $100,000 truck as we get … for the time being.
[Images: Honolulu Ford]