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Truck Average Transaction Prices up 61 Percent Since 2009

Truck Average Transaction Prices up 61 Percent Since 2009

It doesn’t take an automotive analyst to figure out truck prices keep rising, but the analysts have confirmed. In fact, average transaction price for pickup trucks is up a staggering 61 percent in just 10 years.

According to The Wall Street Journal JD Power data says the average truck buyer is paying $44,000. To put that into perspective, the average vehicle price for the whole industry is $32,500. The overall number has only increased 28 percent since 2009; a much more logical increase versus the 61 percent increase on the truck side.

Ten years ago many half-ton trucks topped-out at $50,000, but today it doesn’t take long to find a half-ton that will set you back nearly $75,000. Trucks such as the Ram Limited, F-150 Limited and Sierra Denali all crest over $70,000 when fully loaded.

Of course, the main benefactors of this ever-increasing truck price are the Detroit Big Three. Ford, Fiat Chrysler and GM are all using their truck profits to offset losses from passenger cars. The three automakers jointly produce 90 percent of full-size trucks sold in the United States.

The big question going forward is when full-size trucks will hit their price ceiling. Is the maximum amount people are willing to pay $75,000, $80,000 or even more?





 

About Nick Saporito

AutoVerdict Senior Editor Nick Saporito began writing about cars at age 13. Nick ran a couple of automotive enthusiast sites for several years, before taking some time off to focus on his career and education. By day he's a marketing executive in the telecom world and by night he hangs out here at AV. You'll find him focusing on tech, design and the industry's future.
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  1. WishIhadatruck
    New cars are just too expensive. I'd rather spend my money on other things, lucky for me plenty of other people buy all these cars so I can buy them used.
    CobaltSSKing
    Tone
    One additional thought: the price of EVs has a medium-sized downward trajectory. Regulatory realities mean the opposite is true for ICE vehicles. So, in an ideal world, might EVs become cheaper than ICE vehicles and allow the big three to maintain volumes and margins by selling more affordable vehicles (increasing share with Millenials as baby boomers dies off)?


    That’s what they are hoping for. As long as the tech continues to get cheaper the likelihood of this happening increases ten fold.
    Tone
    One additional thought: the price of EVs has a medium-sized downward trajectory. Regulatory realities mean the opposite is true for ICE vehicles. So, in an ideal world, might EVs become cheaper than ICE vehicles and allow the big three to maintain volumes and margins by selling more affordable vehicles (increasing share with Millenials as baby boomers dies off)?
    Tone
    tripowergto
    Why... with autonomous electric vehicles of course!


    I suspect that is part of the reason for the attention spent on autonomous vehicles. They need to find another business model as the current one fades. Electric vehicles, on the other hand, actually gives them a chance to squeeze a bit more out of their current business model (people buying high-margin vehicles) at least for a little while. I suspect the broader shift to electric is relatively soon; but there remains some significant technical, cost and regulatory barriers to widespread autonomy.
    tripowergto
    Tone
    How do they make money as this profit centre slowly goes away?


    Why... with autonomous electric vehicles of course!
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