Have you been eyeing a pickup truck but still thinking twice because of the price? A truck is indeed a great vehicle, especially if you need something to help you transport goods to some backcountry roads. But the costs of pickup trucks have increased to an enormous amount. This is when compared to their price tags in the past. And this is not just in Florida, but in other markets as well.
Compared to the prices a decade ago, buyers are now paying upwards 50% extra, or even more for a truck than they would have two years ago. If you compare a full-size sedan from 30 years ago, the price is virtually the same when you adjust for inflation. However, that’s not the case with trucks. The vehicle costs just over 2% more than a family car in the past. But it is now priced at more than 30% more. If you’re wondering why trucks are so expensive nowadays, let’s explore the reasons in this article.
Supply and Demand Is Driving Prices
If we want to blame anything for the rising prices of trucks, it’s us, the consumers. Trucks have become very expensive because there has been a steady increase in their demand. In 2019 alone, statistics show that nearly 900,000 buyers have signed up for Ford F-150s. That’s a lot of truck sales in a single year.
As demand increases, manufacturers also increase production to increase supplies. However, this means increased manufacturing costs, which also increases the prices of the trucks. And since the buyers haven’t backed down, the prices continue to climb. Even used trucks are also expensive.
Trucks Are Long-Lasting
If you think buying used trucks is the better option when it comes to price, you’ll have to rethink that. Because trucks last a long time, few people will let their used trucks go to buy a new one. Trucks are built for heavy-duty use; the body-on-frame construction of this vehicle is designed for daily driving. As a result, trucks are durable and work well even after high mileage.
The prices are likely to reflect a low supply of used trucks and higher demands because of durability and performance. Those who need a used vehicle that can still go the distance are sure to go for a truck. Thus, people will pay more for it than a sedan or coupe.
Trucks Depreciate Slowly
Because trucks are built with heavy-duty usage in mind, they can withstand even the most grueling driving conditions. Thus, they are tough and can last very long. They perform well even with higher mileage. These make a truck’s value depreciate slowly. On average, trucks depreciate an average of 42% after five years, compared to cars’ value which depreciates at around 50% in the same span.
Trucks Are Now More Luxurious
If you think luxury features are just for high-end models like SUVs and luxury cars, that’s not the case anymore. Trucks can now compete with the refinements that most cars and SUVs. Giant touchscreen displays, wireless charging, WiFi, full-grain leather interiors – these are just some of the features you can now enjoy in a truck.
Most modern trucks also come with high-end features like guided parking, park assists, and cruise and collision control. Heated steering wheels, massaging seats, fancy interior lights, and upgraded stereo systems are some of the new technologies you can now find loaded in trucks.
And you know, luxury features also command high price tags.
Trucks Are Now Used as Family Car
With great upgrades in the features, many buyers consider getting a truck as a family car. Trucks are now designed with an all-inclusive feature focused on consumer satisfaction and fuel efficiency.
Trucks Get Increased Power
Manufacturers are increasing both the family features and the work capability in trucks. Modern trucks are now offering 290 horsepower with the smallest engine. And you get optional engines at 450 horsepower. You also get direct injection, turbochargers, increased towing capacity, and more robust body panels. All these costs a lot at the research and development phase.
Even if prices might not be lower, sometimes a truck is the only option for some buyers. And if you’re one of them, what you can do is look for a dealer that can offer you some great discounts or deals. Make sure to research the prices among all the dealers near you and do some comparison shopping.
The Pandemic Factor
Along with the overall increase in demand, we are also facing a dual-factor issue with supply that may revolve around the recent pandemic. When the pandemic was in full swing we saw a great deal of factories have to close down for a period of time. This happened both domestically and abroad. Atop this, shipping of trucks from abroad to the U.S. market has taken a hit causing domestically produced trucks to see even higher demand. With a major shortage of new trucks, the used truck market has seen a huge spike in prices.
Sell your truck
If you’re thinking about selling your truck and want to skip the hassle of listing it online but still get a great offer, consider OfferMORE. We pay more for used trucks in Pinellas County. Click here to get an offer today.