Pickup truck prices are entering luxury territory

Despite average transaction prices (ATP) on new vehicles coming down for 8 consecutive months, full-size pickup trucks have apparently missed the memo.

By the numbers: The ATP for a Ford F-Series in May 2024 reached $67,937, only roughly $5,000 less than the ATP of a BMW. Four of the top 10 best-selling vehicles in May were full-size pickups, all with ATPs exceeding $60,000, averaging $65,771.

The big picture: Full-size pickup trucks are now practically in the same price class as luxury vehicles. These high costs are contributing to inventory surpluses in some cases, with many brands having over 100 days’ supply. 

What’s more: While overall vehicle sales increased 5.6% in Q1 2024, large truck purchases dropped 4%. This decline has pushed full-size pickup market share down to 2.4%, compared to a historical average of around 12%.

On the other hand, popular crossover SUVs like the Toyota RAV4 and Honda CR-V have ATPs nearly half that of full-size trucks, averaging around $37,000, and thus, dealers are holding less than 50 days' supply of these models on average. A growing share (41.2% in May 2024) of vehicles fell under the $40,000 mark.

Zoom out: The national ATP for May was $48,389, down 0.9% year-over-year and a reduction of $442. 

Market bifurcation: Consumers seeking affordability are driving demand for crossover SUVs and lower-priced options. Meanwhile, full-size pickups are increasingly positioned as luxury vehicles, potentially attracting a smaller, price-insensitive segment.

Bottom line: Whether this represents a permanent shift or a temporary correction remains to be seen. Americans have a strong affinity for their pickup trucks and that won’t likely change anytime soon. But until prices drop further, many would-be buyers simply can’t afford these vehicles.

Become an automotive insider in just 5 minutes.

Get the weekly email that delivers transparent insights into the car market.

Join 66,000 others now, it's free:

Boost sales with Bumper.com's vehicle history reports, featuring NMVTIS data. Our reports can enhance trust and help you close deals faster.

As an NMVTIS-approved data provider, Bumper.com offers essential information crucial for auto dealers. Discover how our tools can help transform your business and streamline operations.

Connect with us at NIADA booth #613 or schedule a demo to learn how Bumper.com can help elevate your dealership's performance and take your sales to the next level.