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Cancunbadlands

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11,956X$35,000= $418,460,000
Average price
XL 29k
Tremor 41k
Averaging
That's a lot of dope from #Hermosillo
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Tbone289

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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.
 

ice445

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Not 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
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 surprised
 

mapnerd

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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.
Sales data wouldn’t. Just because one can finance it, doesn’t mean one can afford it.
 

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Who would've guessed? Another year, another sales record for the Maverick. That's despite the price increases. I would imagine the majority of them are XL and XLTs since those are the ones I see the most on the roads. Anything higher than that is sparse. It makes sense given the former are their most affordable trims.

That's not just at Ford. Other very reasonably priced vehicles from GM, Kia, Hyundai and Toyota are selling phenomenally as well. I'm seeing more and more Chevrolet Trax's, Chevrolet Trailblazer's, Kia K4's, Hyundai Elantra's, Toyota Corolla's, and Toyota Camry's. All vehicles that start in the $20,000 range and top out in the $30Ks with options, aside from the Camry that's well in the $40Ks for an XSE. It's all people can afford.
 

Tbone289

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Sales data wouldn’t. Just because one can finance it, doesn’t mean one can afford it.
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?
 

mapnerd

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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?
I never said I gleaned it from this data but let’s 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 let’s 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. Let’s assume 80%. That’s $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. Let’s 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.
  • 20%down payment
  • Finance for 4 years or less
  • Total transportation costs should not exceed 10% of your gross monthly income.
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! That’s right where the Mav sits in pricing. How curious.

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 that’s 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 that’s 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.
 
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grandpa_disney

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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.

1756934750627-ji.png
Great Pic! The growth has been going on for years.
For instance my 2013 RAM 1500 Std Cab 8' bed is bigger than my old 1999 RAM 2500 Std Cab 8' bed. A 1/2 ton bigger than the 3/4! The 1500 also has almost as much payload as the older 2500 and they have only gotten bigger. I love my 2024 Mav XLT hybrid. Perfect size. 45+ MPG. Hauls almost everything I need it to. A true Mary Poppins! (Practically Perfect in Every Way) The ram is now regulated for Dump Runs and beauty bark these days. :)

I am not surprised at the sales numbers. I see mavs with dealer plates all over the place.
 

Tbone289

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I never said I gleaned it from this data but let’s 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 let’s 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. Let’s assume 80%. That’s $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. Let’s 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.
  • 20%down payment
  • Finance for 4 years or less
  • Total transportation costs should not exceed 10% of your gross monthly income.
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! That’s right where the Mav sits in pricing. How curious.

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 that’s 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 that’s 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.
Thanks for your interpretation.
 
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Cherokee

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Need 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.
FoMoCo executive board meeting, ā€œWell Bob, as always our latest price increases did not slow demand for the Maverick. So I’m 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€
ā€œMeeting adjourned ?ā€
Edward seconds the motion,

Bob announces, ā€œOk that’s settled, now get those strippers in here and open the bar.ā€
 

Cherokee

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FoMoCo executive board meeting, ā€œWell Bob, as always our latest price increases did not slow demand for the Maverick. So I’m 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€
ā€œMeeting adjourned ?ā€
Edward seconds the motion,

Bob announces, ā€œOk that’s settled, now get those strippers in here and open the bar.ā€
I’m sorry guys but the corporate world of JWC and JWH,
ā€˜Jim Walter Corporation and Jim Walter Homes and Celotex’ raised my family.

I’ve got insider knowledge of how board meetings go.

They thought it would be funny to stuff toilet paper in the table top cannon and fire it in the board room. Figured it would put out confetti.

It blew out, down the drop ceiling, the lighting and the frame work. Dropping all this on the super expensive imported board room table.
Made the room un-useable. I saw the strippers leave.
The board members followed them out and they took the party to Lorello’s Italian restaurant.
Where they did lunch time lingerie shows.
Where you bought the lingerie for your wife,
Cough cough, right off the model right at your table. She’d stand right there, take it off and bag it up for you,

Yeah, don’t ask. It’s how us boomers partied. You younguns have not a clue.

The crab meat spaghetti sauce was famous.
And their home made sangria was to die for.
 
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Cherokee

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11,956X$35,000= $418,460,000
Average price
XL 29k
Tremor 41k
Averaging
That's a lot of dope from #Hermosillo
Yes sir it is. At about 30% profit to Ford Corporate so you’re talking $125 million.
And that’s on just one model, one of their smaller least expensive offerings.
 

mapnerd

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As long as they make the payment they can afford it.
I think we’d have to agree to disagree on that. I suppose technically this is true, but that doesn’t make it smart.

i agree with everything else though. Mavs are unlikely to see high repo numbers because they are priced right at the upper end of what the average household earning the median income can afford, even if just barely - that’s why they are selling well. They are one of the few vehicles that the average American can still afford. It’s the average household earning the median income that goes out and buys an F150 Lariat, Expedition, or some other ungodly expensive vehicle that they cannot afford by any stretch of the imagination that will see incidences of repossession. Some Mavs will get repo’d but most of that will be due to factors beyond the buyers control, not because they made an unwise financial decision from the start.

If you go back to my original post, what I was saying is the Mav sells well because it’s affordable. The sales numbers are not shocking at least for the Mav. For the other vehicles with high MSRPs, they sell because there are a lot of people making bad decisions, and there are also a lot of high earners that actually can afford the vehicle.

To be fair to vehicle manufacturers, a fair part of the price problem is even out of their control. Between regulations requiring vehicles meet certain standards and include certain equipment, and ā€œsoft regulationā€ in the form of vehicle manufacturers being forced to include certain equipment or engineer in more costly ways in order to receive high safety ratings - which are not required but would negatively impact consumer purchasing decisions if they received a low safety rating - there is a somewhat artificial floor to the cost of every vehicle manufactured that they simply cannot get below.

However, most of the CEOs of the big 3 are also on record saying they are never going to make a sub-$40K (full size) truck again. That’s telling. It’s not that they cannot do it. It’s that the juice is not worth the squeeze. They don’t need to care about the affordability crisis as long as consumers are willing to take out loans they cannot afford to service. The manufacturer gets paid when the vehicle sells. They (Ford) are not at all concerned with whether or not that vehicle is actually affordable for the consumer unless it impacts their sales.

So then why bother making the Mav? Because if they didn’t, they are leaving cash on the table from buyers who will only buy what they can comfortably afford.
 
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mapnerd

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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.
That is true. In fact, in most casses they have a legally enforceable, fiduciary duty to maximize profits and return to shareholders.

it’s still sad to see so many people making poor decisions instead of just buying what they can comfortably afford. If people did that, prices would magically come down.
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