Average Pickup Transaction Price Rises – A LOT
A recent survey on pickup truck transaction pricing has found they cost more, a lot more. And buyers are willing to pay for more “fancy” pickups. Is the standard, no-frills pickup being phased out by consumer demand?
Autonews.com says that the big pickup transaction price is rising twice as fast as the industry rate. The facts are that:
Although volumes remain well below the previous peaks, average transaction prices for full-sized pickups have increased at more than double the average rate for the industry since 2005, according to Edmunds.com. And manufacturers are not creating demand artificially with unsustainable discounts.
This means that the new 2014 Toyota Tundra 1794 edition is exactly what the market ordered whether current Tundra owners like it or not. The simple truth is that the buyers are wanting this type of luxury package, are willingly paying the price for it and automakers are reaping the profits. Instead of selling 2-3 trucks to make the same profit, they simply need to sell one of the luxury trucks.
Where does this leave the “no-frills” pickup buyer? This type of truck is seemingly becoming regulated to the fleet buyer side. The sales numbers are telling automakers that the percentage of basic, retail truck buyers is diminishing. With less demand, it is basic business logic for companies to build more expensive trucks. There is now a growing divide in the full-size buyer market between the “no-frills shopper” and the “luxury, car-ride like truck buyer.” Who wins? He/she who pays more it seems.
There is, of course, two sides to any argument. While, pickup shoppers are buying more luxury pickups, there are other factors in play. The new government regulations for safety and fuel economy, plus consumer demand for a more plush ride are driving up the price as well. There are simply more and more costly standard features that are incorporated on pickups these days.
The reality is simple. It is a great time to be selling pickups with high transaction prices and a hot market. On the flip side, it is a bad time for consumers looking for a cheap, reliable pickup.
What will the future hold? It is anybody’s guess, yet with more luxury editions hitting the market, CAFE regulations being implemented and consumer demand for more standard features growing, the likelihood of lower prices is low.
What do you think? Is it time for a new “no-frills” truck to hit the market or do you want one of the luxury editions?
Filed Under: Auto News