Industry News: Increasing Pickup Truck Prices Are Leaving Average Buyers Out

[William Maley]

Prices on new pickup trucks have been steadily increasing as more people are choosing them as their family vehicle and in turn are wanting more luxury features. But this rise in prices has been making it harder for the average buyer to afford one.

Data from Edmunds shows through September, the average transaction price for a full-size pickup is $48,377; a 48 percent increase when compared to 10 years ago and 19 percent increased when compared to 2013.

"A 48-percent increase in price is the highest price increase for that time period out of all vehicle categories. Even at $45,000, it prices a lot of people out," said Ivan Drury, senior analyst at Edmunds to the Detroit Free Press.

"There are consumers who can afford the bare bones basic vehicles at $30,000, but once you're shown an option like a ventilated seat versus a cloth seat and it's 90 degrees outside, it becomes a very compelling argument to say yes. Ten years ago, comfort packages weren't offered on trucks. People are saying, 'I want those even if those vehicles are used to haul mulch.' "

A very telling sign that truck prices are beginning to push people out is the massive difference between the expected and the actually average transactional price. Cox Automotive reports that buyers of a full-size pickup expected to pay an average of $38,529 through the month August. The actual average transaction price through August was $47,987 according to Cox.

Also seeing a rise is the average income of truck buyers. Alexander Edwards, president of consultancy Strategic Vision tells the Free Press  that the median household income of a truck buyer has risen form $76,660 in 2009 to $100,305 in 2018. More telling is that the truck buyer has a higher income than a car buyer ($95,355).

Some are beginning to worry that pickup trucks are becoming a bit too expensive.

"In 1988, I sold my first pickup at $20,000 and I thought, 'Man, who could ever afford this?' Now, they're $60,000, $70,000, $80,000. ... I'm not sure everybody wants all that technology, but we're adding all of it. We're actually in the luxury business at those prices," said Charlie Gilchrist, owner of Gilchrist Automotive in the Dallas-Fort Worth area.

A survey done by CarGurus correlates Gilchrist's view. Asking 203 current pickup owners from their user panel, CarGurus reports that owners would call paying $35,000 on a truck a good deal. But increase it to the average price of $45,200 and its too much. Respondents also said they would be willing to give up such features as a automatic open-close tailgate and Wi-Fi hotspot for a lower price.

“This survey showed that pickup truck owners believe some of the new technology is nice to have, but not essential and not worth the price. We’re at an interesting time in the pickup truck category where many people are using their pickup trucks for more than just work. Those looking for a truck purely for work purposes don’t need all of the new luxury features, and those looking for a truck for commuting or leisure don’t need all of the new work features,” said Madison Gross, CarGurus' senior manager of customer insights.

Source: Detroit Free Press

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[A Horse With No Name]

I can really see this. Lotta coin for the new trucks!

[David]

33 minutes ago, A Horse With No Name said:

I can really see this. Lotta coin for the new trucks!

So true, the majority of truck buyers do not need or want all the bells and whistles. Yet the dealerships order them this way and as such you end up with Truck Envy and Luxury truck over a practical daily driving truck. Prices need to drop by half.

[A Horse With No Name]

9 minutes ago, dfelt said:

So true, the majority of truck buyers do not need or want all the bells and whistles. Yet the dealerships order them this way and as such you end up with Truck Envy and Luxury truck over a practical daily driving truck. Prices need to drop by half.

Considering that in 1956 a new F series Ford was the equal of something like 16 grand in todays coin...yes.

That being said....the product. OMG.  Colorado or Canyon with a mild lift would look so damned good in my driveway!

Would take a Silverado or Ram also.

Especially a Cummins dually....yeah!

[ccap41]

I can agree with that. They've gone through the roof with their prices. 

[smk4565]

48% price increase in 10 years is crazy.  But this is where leases and 8 year car loans come in.  New car dealerships sell monthly payments, not vehicle prices.   The higher the prices go, the longer the loan terms get, and you'll see the auto manufacture finance arms offering 10 year car loans one day.  Which sounds like a recipe for disaster for consumers but people will sign up for it.

Edited October 4, 2018 by smk4565

[Robert Hall]

Full size pickups have become the modern BOF full size family sedan..available in a variety of trim levels, with a variety of trunk sizes.:)    And full size SUVs are the BOF full size wagons of today (they need the fake woodgrain side trim option, IMO).  

One bit of random related weirdness--on eBay today I'm seeing an ad for the new Ram..in Spanish.   Deja Tus Limites Atras..La Nueva Ram 1500.

Edited October 4, 2018 by Cubical-aka-Moltar

[David]

1 hour ago, A Horse With No Name said:

Considering that in 1956 a new F series Ford was the equal of something like 16 grand in todays coin...yes.

That being said....the product. OMG.  Colorado or Canyon with a mild lift would look so damned good in my driveway!

Would take a Silverado or Ram also.

Especially a Cummins dually....yeah!

So you would be happy with this in your Driveway!

[ccap41]

Stereotypical "Bro" wheels look like trash. 

[David]

49 minutes ago, ccap41 said:

Stereotypical "Bro" wheels look like trash. 

How about Blackout edition?

Course I have mixed feelings on adding more fender flares like they did on this.

Chevy has nice flares but Meh nose for me.

[David]

Course the big plastic on the bottom also looks like Shit. @ocnblu did it right on his truck when he removed it.

Course the ZR2 is not bad looking. Would like this package on the GMC.

[A Horse With No Name]

ZR2 is good looking.

[balthazar]

My '94 F-150 (Reg Cab / Long Bed) off-lot base MSRP was $13,154. Had :
• Pref Equip Pac ($706) : headliner/insulation package, AM/FM w clock, Argent styled steel rims
• 4-spd auto OD ($924)
• 3/4 ton springs ($46)
• A/C ($806)
• rear bumper ($130)
As built MSRP : $15,766 plus $600 dest. = $16,366.
Had supposed option package savings of $350, so final total sticker was $16,016.My price was $15,148.

15,148 in 2017 dollars is $25,424. Just did a build & price on a '18 Silverado W/T V6, only options a bed mat ($150) and final sticker is $27,195.
So that's very comparable ('18 has automatic & A/C standard, plus a bunch of other features the '94 didn't like power locks & cruise, etc).

It's the RANGE of pickup prices that has expanded immeasurably. That, plus the buyer demographic that "has to have" all the bells & whistles. The buyer has moved up the scale, too, but it's still possible to find a very affordable truck, just not one very many people would agree to buy.

[ocnblu]

2019 Chevrolet Silverado Custom Trail Boss Double Cab, with only two options:

5.3L V8

Spray-in bedliner

$42,885 (this pricing is according to the NADA website)

I would order mine just like this, it already comes with a good amount of kit... but I would need about $8000 in incentives/discounts.

GM Accessories catalog has part numbers for a remote start kit (necessary for me since I would need to park it outside my garage) and a foglight kit, I would have those installed by the dealer at time of sale.

Edited October 5, 2018 by ocnblu

[Robert Hall]

A '19 Ram 1500 Laramie 4x4 w/ Hemi, brown w/ two tone brown/beige leather buckets, UConnect w/ nav, CD player, 20 inch wheels came out to over $53k.  Alas, it wouldn't fit in my garage, so at the price range I'd go for a Grand Cherokee..

[A Horse With No Name]

31 minutes ago, ocnblu said:

2019 Chevrolet Silverado Custom Trail Boss Double Cab, with only two options:

5.3L V8

Spray-in bedliner

$42,885

I would order mine just like this, it already comes with a good amount of kit... but I would need about $8000 in incentives/discounts.

GM Accessories catalog has part numbers for a remote start kit (necessary for me since I would need to park it outside my garage) and a foglight kit, I would have those installed by the dealer at time of sale.

I could see you rocking this.

2 minutes ago, Cubical-aka-Moltar said:

A '19 Ram 1500 Laramie 4x4 w/ Hemi, brown w/ two tone brown/beige leather buckets, UConnect w/ nav, CD player, 20 inch wheels came out to over $53k.  Alas, it wouldn't fit in my garage, so at the price range I'd go for a Grand Cherokee..

I would rather have the diesel. 

[riviera74]

. . . . . . .  and you wonder why the Colorado/Canyon and other midsize trucks sell so well.

[ccap41]

15 hours ago, dfelt said:

How about Blackout edition?

Course I have mixed feelings on adding more fender flares like they did on this.

Chevy has nice flares but Meh nose for me.

Those are all much better! I cannot stand that 95% of aftermarket wheels on trucks and Wranglers are black with silver machined holes and fake bead locks. 

[David]

I miss my 1969 Ford Camper Special Pickup. It was an awesome truck that just always ran and never gave me any problems. Yet career took off and I had to move out of state, so extra auto's were sold.

[A Horse With No Name]

14 hours ago, riviera74 said:

. . . . . . .  and you wonder why the Colorado/Canyon and other midsize trucks sell so well.

They are a damned nice product. I park near a white one every day at work....it is really a nice truck. Very impressed, and I am pretty jaded from an automotive/truck point of view.

11 minutes ago, dfelt said:

I miss my 1969 Ford Camper Special Pickup. It was an awesome truck that just always ran and never gave me any problems. Yet career took off and I had to move out of state, so extra auto's were sold.

That Era of Ford gets nothing but love from me. I have a friend who has an early 70's Camper special. Red and white.  He lives in California.....it's rust free and has a 460. He keeps threatening to sell it. If I didn't have a wood shop in my garage, I could see that truck finding a very loving home in Ohio....living a life of luxury under a car cover.

[Robert Hall]

1 hour ago, dfelt said:

I miss my 1969 Ford Camper Special Pickup. It was an awesome truck that just always ran and never gave me any problems. Yet career took off and I had to move out of state, so extra auto's were sold.

Cool...the '67-72 'bump side' and '73-79 'dent side' Ford F-series were great looking trucks, have a lot of charm, IMO.. 

[regfootball]

a 2019 lower trim 4 cylinder silverado for me would be just fine, if i want a truck.  I never have had one.  But i don't tow or haul, so i think the 4 banger would work ok.