11,956X$35,000= $418,460,000
Average price
XL 29k
Tremor 41k
Averaging
That's a lot of dope from #Hermosillo
Average price
XL 29k
Tremor 41k
Averaging
That's a lot of dope from #Hermosillo
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My 2020 base GT was around 36k Msrp (32otd), a new one is approaching 50k. There are heavy discounts right now bringing them down to around 40k, but its just too much money for a vehicle most people aren't going to use as their primary vehicle. The styling is also a bit polarizing so im not surprisedNot to go totally off topic but look at the sales figures for the "fake" Mustang versus the "real" Mustang. The Mach-E is out selling the Mustang almost 2-1. LOL
Sales data wouldnāt. Just because one can finance it, doesnāt mean one can afford it.The Maverick is all the average American can afford? The sales data for all of the other, more expensive models doesn't support that theory.
Yet somehow you're able to glean from this data that the Maverick is selling well because all the average American can afford is the Maverick? Impressive.Sales data wouldnāt. Just because one can finance it, doesnāt mean one can afford it.
I never said I gleaned it from this data but letās do some basic math.Yet somehow you're able to glean from this data that the Maverick is selling well because all the average American can afford is the Maverick? Impressive.
What is the price exactly that the average American can afford right now?
Great Pic! The growth has been going on for years.GM did outsell Ford in trucks for 2024, and Ford seems to be sitting tight on their F-150 lightning and going with a smaller EV truck. I just hope the success of the Maverick opens the door for more smaller trucks. Trucks are too big now.
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Thanks for your interpretation.I never said I gleaned it from this data but letās do some basic math.
The most recent official figure of median household income from the US Census Bureau is for 2023 and that number was $80,610. That was a few years ago though and people tend to get raises year over year so letās be generous and assume that they receive a raises that aligned to the CPI which was 4.1% for 2023 and 3.4% for 2024. That would place their current income at $86K.
Monthly take-home is generally accepted to be 75-80% of gross, and frankly that is also rather generous. Letās assume 80%. Thatās $68,800 which works out to about $2,650 per pay period.
A conservative car payment is generally accepted to be around 10% of take home pay. In this case that would equate to $529. Letās call it $530.
Total transportation costs should generally not exceed 20% of take home pay. To be clear, total transportation cost includes the car payment, insurance, fuel, and maintenance. In this case, that equates to $1,030.
The 20/4/10 rule is the most common rule used by financial experts when determining a budget to buy a car.
So working backward from a $530 payment (10% of a monthly net income of $5,292) on a four year loan with a 7.2% interest rate (Q22025 average) the average household earning the median income can afford a car loan of around $24k. With a 20% down payment, the total cost should not exceed $29K. Surprise! Thatās right where the Mav sits in pricing. How curious.
- 20%down payment
- Finance for 4 years or less
- Total transportation costs should not exceed 10% of your gross monthly income.
KBB pegs the average new vehicle transaction price (ATP) at $48,841for July 2025 (https://www.kbb.com/car-news/new-car-prices-stayed-largely-steady-in-july/#:~:text=The average American new car,the rest of North America.)
That is far and above what the average us household earning the median income can sustainably carry. Now if thatās true, how is it that the ATP is $48.8K when all they can afford is $29k?
Stupid long terms. Ridiculously high notes. Overly lax underwriting standards from lenders who are approving buyers for amounts that are 15-20% of gross income which is well above a prudent and reasonable standard. In fairness to that wicked high ATP, many households also roll negative equity from their previous loan into the new loan, which skews the ATP high and thatās dumb for all kinds of obvious reasons but I digress.
An $80k household cannot afford a $50K car. Not without making massive financial sacrifices that will cripple them. $1,000+ car payments for 84 months is not normal and not sustainable.
FoMoCo executive board meeting, āWell Bob, as always our latest price increases did not slow demand for the Maverick. So Iām of the opinion as long as we are cheaper than anything our competition can produce when they try to compete in the mini truck category we are fine as wine.āNeed to know profit margin on each model. If you have a small margin ( Maverick ?) you need to sell more cars. Also, it seems the volume reflects that people are not put-off by the pricing. The Maverick is still a low-cost purchase in the car world. My Lobo was < 40K out the door. I feel I got a good deal for my money.
Iām sorry guys but the corporate world of JWC and JWH,FoMoCo executive board meeting, āWell Bob, as always our latest price increases did not slow demand for the Maverick. So Iām of the opinion as long as we are cheaper than anything our competition can produce when they try to compete in the mini truck category we are fine as wine.ā
āMeeting adjourned ?ā
Edward seconds the motion,
Bob announces, āOk thatās settled, now get those strippers in here and open the bar.ā
Yes sir it is. At about 30% profit to Ford Corporate so youāre talking $125 million.11,956X$35,000= $418,460,000
Average price
XL 29k
Tremor 41k
Averaging
That's a lot of dope from #Hermosillo
I think weād have to agree to disagree on that. I suppose technically this is true, but that doesnāt make it smart.As long as they make the payment they can afford it.
That is true. In fact, in most casses they have a legally enforceable, fiduciary duty to maximize profits and return to shareholders.All business is in business to sell for a profit. It is not the manufacturers responsibility to make things you can afford. That is up to you to decide. I agree these 1000/month 7 year loans are stupid. But if I am the CEO of Ford and people will pay it I am going to sell it.