You’ll be pretty hard-pressed to find an automaker that doesn’t already make or have plans for a pickup truck.Trucksare the lifeblood of the American roadway. While big names, like Ford’s F-Series, Chevrolet’s Silverado, and Ram’s lineup of trucks paved the way for working folks, farmers, and off-roaders, trucks and their automakers have transitioned. Now with others like Nissan’s Titan, Toyota’s Tundra, andeven Tesla’s Cybertruck, consumers have more capability and options in today’s truck segment. But used trucks are so expensive.
Light-duty, heavy-duty, hybrid, diesel, off-road, and luxury are all available features for today’s pickups. If you want a family vehicle, there’s a quad-cab. Do you need to tow a boat or horse trailer? There are hauling packages for you. However, these used truck prices are sky-high. Here are five contributing factors behind why used trucks are so expensive.
1. Trucks are desirable is a reason why used trucks are so expensive
When there is increased consumer demand for any product, and it becomes highly desirable, the price goes up and remains high.Forbessays as of January this year; new trucks are actually outselling new cars at a rate of three to one.Vehicle Historysays a pickup truck is the best-selling vehicle in 39 of all 50 states. That’s in part to the pickup transitioning into new luxury, family-friendly, and daily driver rides. Consumers love their beefy trucks for off-roading and working applications. Buttoday’s trucks are harnessingeven more durable materials, innovative technology, and plushier touch points.
Used truck prices aren’t that far off from new truck prices, which contradicts the old adage that buying used would save money. Used truck prices have soared in recent years, hitting an average of $40,000 in 2021. Some pickups with more robust features and capabilities are going for more than brand-new models.
Trucks can appear more affordable if you’re only looking at the monthly payment commitment to buy one. But don’t be fooled. Loans are getting longer, asGear Patrolpoints out, essentially lowering those monthly truck payments. It used to be a traditional vehicle loan would be for three years. But now, some consumers are financing five and even seven years out to pay for a vehicle they probably wouldn’t otherwise be able to afford.
4. The famed Chicken Tax is a reason why used trucks are so expensive
Another factor contributing tohigh used truck pricesis the Chicken Tax. Big automakers faced fierce competition from overseas manufacturers. In retaliation for the European tariffs on chickens, the U.S. responded with the “Chicken Tax” in 1964. This tax adds a 25% tariff on foreign light pickups and is still in place today to protect the domestic truck market. If Nissan, Isuzu, and Toyota want to drive down their prices, they must build their trucks on U.S. soil.
5. Manufacturers can lower or get rid of incentives.
Truck incentives and bonuses work differently than traditional production line fleets. When automakers adjust the MSRP of their portfolios in line with economic demand, they take a different approach to pickups. Instead of modifying thepurchase price of a truck, manufacturers will offer cash back, special financing deals, and other “buy now” incentives that create the illusion consumers are getting a deal. But in the end, they’re not dropping the MSRP at all.
Don’t presume that buying used will save you much when buying a pickup. For these reasons and ongoing demand for today’s more fuel-efficient, luxurious, and safer models,buying a used truckwill be just as significant of an investment as buying a new one.
There's no denying that pickups are larger and require more materials to build than your average four-door sedan. In addition, most trucks are built with higher-quality materials than passenger cars due to their workhorse nature. As inflation continues, material costs rise accordingly.
There's no denying that pickups are larger and require more materials to build than your average four-door sedan. In addition, most trucks are built with higher-quality materials than passenger cars due to their workhorse nature. As inflation continues, material costs rise accordingly.
Why are used trucks so expensive? The biggest factor comes down to reliability. Many people wonder - do trucks last longer than cars, and the answer is typically yes. Generally speaking, pickup trucks remain more reliable than most cars, allowing for a longer lifespan.
High Demand: The Ford F-150 enjoys immense popularity in the United States. Strong consumer interest and demand can naturally lead to higher prices. Customization and Features: The price of an F-150 can vary significantly based on customization options, trim levels, and features chosen.
For starters, you might be asking yourself, “Why do used trucks have high mileage?” Truck owners are often looking to move on from their old model and buy a newer one! This could be owner fatigue, lifestyle changes, or something else. After being driven for a few years, these vehicles build up mileage.
There are several reasons why pickup trucks hold their value a lot better than regular passenger cars, once they hit the used market. Compared to your run-of-the-mill sedan or crossover, trucks are bigger, which means not just more practical/utilitarian, but also safer, generally speaking.
The panoply of regulatory rules, labor standards, tariffs, and taxes also drive up manufacturing costs, which means car makers need to maximize profit per unit. That offers more incentive to push the priciest vehicles possible.
While you might worry that work trucks wear out faster, pickup trucks last longer than cars on average. They are designed to withstand more wear and tear, so you don't have to worry about handling heavy-duty jobs.
GMC models are more expensive because the brand tends to target the luxury market. Chevy is aimed at the mass market while the message offered by GMC is to stand apart and not be “one of the herd.” The more exclusive vibes and luxurious touches of GMC models mean the cost of the vehicles tend to be higher as well.
For used trucks with gas engines, try to keep the mileage under 100,000 miles. Used trucks with a diesel engine can go a good deal further since diesel engines are easier to maintain than gasoline. 200,000 miles in a diesel engine is about the same wear and tear as 100,000 is for gas.
“Last month, the average price for a new vehicle was [$47,936] — a [1.4%] dip from last year, according to the latest KBB data. This suggests that new car prices might drop in 2024.” One factor that could lead to price drops is an oversupply of new cars.
Here's the latest data on truck MSRPs for base trims: The best-selling truck in America, the Ford F-150, has seen a 2.6% increase in base MSRP since December 2021. The F-150 now starts at $29,990. The only truck to fare better (for the consumer) is the Toyota Tacoma, which has gone up 2.1% to a current MSRP of $26,700.
Introduction: My name is Aron Pacocha, I am a happy, tasty, innocent, proud, talented, courageous, magnificent person who loves writing and wants to share my knowledge and understanding with you.
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