Greed fueling higher new truck prices? Comparing 10 years

Greed, the simple answer

Let’s start with that simple answer. People love a simple answer to a complex question and greed is the easiest explanation to why new truck prices have risen. 

How do you answer this question though? Greed surely would mean automakers like Ram would be making more profit right? That would make sense. If truck prices are higher due to greed, then automakers surely would be raking in the profit from middle class consumers forced to pay the higher prices. 

The economic reports tell a different story.

Ford Motor Company, for example, has lost money at times over the past ten years according to Statista.

What about Fiat-Chrysler Automobiles, the parent company of Ram before the merger with Stellantis in 2020? They were holding on, but they did need the merge for new revenue and cash flow to expand and survive.

General Motors? They haven’t been doing so hot either.

It is true when you add the Detroit 3 together, as the Economic Policy Institute did when arguing on behalf of the UAW, they have been making profits and it is also true they have been investing those profits back into the U.S. plants (GM has announced $4 billion just this year alone) and they did raise wages after the 2023 UAW strike.

Have higher truck prices really happened?

What’s going on then if automakers aren’t raking in the profits? Surely truck prices have changed and even Ram CEO Kuniskis said as much. 

“Remember when trucks were cheap,” he said in a recent media event we attended. “Now everything has gotten expensive.” 

I asked him about his plan to bring back a cheaper model to replace the Ram classic they lost when the 2025 model was launched. The Ram classic was the prior-generation truck they were selling for a lower price. He said the new Ram 1500 Express was brought back for that purpose.

The 2026 Ram 1500 Express is a stripped down version of the truck with a starting price of $44,430 including destination (the price in the chart below is without FYI). 

Bringing the Express back will bring a lower price option to the lower end of the lineup, however, what does the lineup look like for prices compared to 10 years ago? Motortrend has the data with MSRP going back to 2016. Keep in mind, they don’t build regular cab trucks anymore in light-duty trucks and all prices are without destination fees that have jumped to $2,095 from $1,195 in 2016.

The base-level trucks has increased by $10,000 in 10 years in most cases while the higher-end trucks have seen the biggest change in prices. Factoring in inflation $34,085 in 2016 dollars is worth about $45,673.90 in 2025 dollars.

What’s really changed then?

The growth of customer demand for nicer interiors, more technology and the introduction of new top-tier luxury trucks. For most brands, these trucks didn’t exist 10 years ago and the thought of adding luxury features into trucks at the level we do today would have been laughed at.

I once asked GMC’s then Vice President Duncan Aldred what the price ceiling is for top-tier luxury trucks. He said he didn’t know. They were talking about it, as a matter of fact in the office the other day, and they didn’t know. The only thing they know is they kept putting more luxury features in the trucks, raising the price and consumers kept buying them. That was back around 2021.

Automakers don’t sell a lot of these high-end luxury trucks, yet critics seem to be fixated on them as the prime example of greed. The higher-end trucks have more features, cost more to build and have more profit than lower-end trucks, but they aren’t the cash cow people think they are in reality. 

Automaker profit is generally believed to be between 3-10 percent per truck according to various sources online with lower price models having lower profit margin. However, the lower priced models sell at a higher volume.

Think of it this way. For every 10-20 Tradesman work trucks Ram sells and makes around $3,000 per truck, they may get lucky and sell one Tungsten and make $7,000 per truck. Not exactly rolling in the dough by selling that one luxury truck are you?

Now, keep in mind, your view on this will vary on your area. Some areas are more affluent and the dealership lot, aka what you see, will reflect this with a mix of higher-end trucks. Other areas, the dealership won’t even bother ordering a Tungsten trim level.

Trim versus Trim

What’s also interesting to consider is how much trims have changed. People want to compare the trim they bought 10 years ago to the same trim today and the results can be shocking.

For example, a 2016 Ram 1500 Limited was the top trim back then. Here’s the official description from the press release:

“The Limited is the apex of modern luxury. Subtle stitching accents, pinstriping, unique materials and patterns are found throughout the interior. These are details created for the customer who appreciates them. A new console bin houses a cellular phone and tablet holder, which can be concealed with a new tambour wood sliding door. The real wood door is made from Black Argento wood, the chosen timber for the Limited interior. The collective silver pinstripe theme runs through the wood and a satin chrome handle rolls the door with ease. An all-black headliner and pillars combination is new for Limited and Rebel models. Finally, passengers will enjoy solid black premium Berber carpet inserts, which can easily be removed from the floor mats to reveal double-duty slush mats.”

The 2026 press release doesn’t break out the Limited trim. Here’s what Google has to say about it:

“It features a high-output 3.0-liter Hurricane inline-six engine producing 540 horsepower as standard. Key features include premium quilted leather interior, chrome exterior styling, LED lighting, power-deployable running boards, a RamBox cargo management system and a power tailgate. Inside, you’ll find heated, ventilated, and massaging front seats, a 14.5-inch Uconnect NAV touchscreen, dual panoramic moonroof and a 10.25-inch passenger touchscreen.”

The price difference is $20,000 between the top of the line 2016 Limited and it is now the second to the top trim in 2026. Looking at the pictures and comparing the options, the 2016 Limited looks a lot closer to a mid-tier Big Horn in today’s market than the second highest trim level today.

What has happened over the years to increase prices?

As you can literally see from the photos and read from the description above the top-tier trucks have gotten fancier, more powerful and safer. The lower-trim level Tradesman trucks haven’t changed a whole lot besides adding technology, like Apple Carplay and Android Auto, and standard Federally mandated safety equipment like back-up cameras which do cost automakers money that they pass on to the consumers.

Other external factors have happened to drive up costs over the years:

• Steel and aluminum tariffs (started in 2018) directly affecting automakers
• UAW strike resulting in higher wages
• Tariffs on auto parts and automotive production not in the U.S.

Also, we are seeing less of the big incentives on trucks as in previous years and interest rates are higher. It used to be trucks were always sold with thousands of dollars off and low interest rates. Now, those deals are harder to find.

Finally, the overall cost of all goods and services increases year over year,  inflation and the value of the dollar weakening over time are all factors leading to higher prices.

The bottom line

Greed is always the simple answer, but it just doesn’t add up now does it? The fact is there are lots of factors that contribute to higher prices. The shocking thing is, the lower-level trucks haven’t really gone up that much in price when you look at the comparison chart. You could argue the Tradesman or the Express are actually a good price when you consider how much everything has gone up comparatively.

Finally, there is something about human psychology where people see a new luxury truck advertised and they lose their minds. They post about these $100,000 trucks and how automakers have become greedy. To be clear, a $100,000 truck is very rare and is a very abnormal truck to find for sale. And they miss the fact most trucks are sold in the $40,000 to $50,000 range.

Just something about that extra zero that riles people up.