Current Pickup Truck Market Trends and Future Outlook

 

Pickup trucks have long been a staple of the American automotive market. In fact, the Ford F Series trucks has maintained the best-selling vehicle spot in the country for almost 50 years. Pickup trucks are not just utilitarian work horses they represent a way of life in many American households.

However, your new fully optioned out F-150 is a far cry away from your dad’s old F-100 pick up. As the consumer demands shifted over the last couple of decades so did the pickup truck market. These vehicles have evolved from simple, rock solid workhorses at home on a farm or a construction site to feature-packed, luxury vehicles. This evolution has had a significant impact on pickup truck prices with many models now commanding prices equivalent to some German luxury cars.

 

In this article we take a dive into the state of the pickup truck market, where prices are headed and what factors are influencing these trends.

The Current State of the Pickup Truck Market

As of early 2024, the pickup truck market is booming, driven by strong consumer demand and a steady shift towards more versatile and powerful vehicles. Trucks like the Ford F-150, Chevrolet Silverado and Ram 1500 continue to dominate the market with these models consistently ranking among the top-selling vehicles in the United States. There are some signs of decreased demand as reflected in the overall automotive market effecting certain brands more than others. This is more evident in the RAM family of trucks as on average they sit on the market for 72 days before sale.

However, we do not believe the used truck market is on a verge of complete melt down. Pickup trucks are amongst the most popular vehicles sold in the US today and we do not believe this is going to change anytime soon. What consumers need to realize is that this popularity comes at a cost. The average transaction price for a new full-size pickup truck has increased year after year with the most drastic upturn occurring within the last year or two. With many fully loaded models pushing well beyond the $70,000 mark, the average price of a new pickup truck currently is a whopping $64,000. This increase is due to a combination of factors, but it is mainly driven by consumer demand. More people are buying pickup trucks than ever before causing prices to skyrocket. A lot of these new pick-up truck buyers demand more advanced features, such as large touchscreens, wireless charging, apple car play, Android Auto, premium sound systems, and advanced driver-assistance systems. In addition, they expect the truck to handle more like a luxury car than a pick-up truck.

Factors Driving Price Increases

1. Increased Demand for Luxury Features: The modern pickup trucks are no longer a vehicle that people use for towing, hauling or off roading. A significant majority of modern truck owner’s uses their trucks as daily drivers. The modern-day truck owner expects much more from their trucks than their predecessors.

Consumer demands and expectations have not fallen on deaf ears, in fact more and more pick-up truck manufacturers are equipping their trucks with features that traditionally were only available in luxury sedans and SUVs. Features such as leather interiors, state-of-the-art infotainment systems, and cutting-edge safety features are very common amongst the pickup trucks on the market today. In fact, as we have learned first-hand it can be quite difficult to find a bone stock pickup truck on the new car pickup truck lot these days. Needless to say, all of these extra options and standard features considerably contribute to the increase in truck prices.

1. Inflation and Supply Chain Issues: With the advancement of digital trading and world manufacturing all large-scale production has become part of the global market. Auto manufacturers heavily rely on the dollars buying power as well as a variety of world supply chain systems in any large-scale manufacturing. The recent rapid inflation decreased the dollars buying power increasing the manufactures costs for raw materials, parts, and various manufacturing and distribution processes. Pressures have further exacerbated the situation, with the global semiconductor shortage and ongoing supply chain disruptions have affected nearly every segment of the automotive industry, including pickup trucks. These issues have led to production delays driving up prices.
2. Electrification: The introduction of electric pickup trucks, such as the Ford F-150 Lightning and Rivian R1T and the Tesla Cyber truck has also influenced market prices. While these electric trucks offer impressive performance and innovative features, they require more raw materials to build. The Tesla Cyber truck battery weighs around 1,600 pounds. This is not just additional weight the battery is made up of precious material such as Nickel, Cobalt, Aluminum, Lithium, Iron Phosphate and other materials requiring additional sourcing and manufacturing costs. It is expected that more and more automakers are going to enter the electric truck market further contributing to the overall increase in average pickup truck prices.

Where Are Prices Headed?

Looking ahead, the upward trend in pickup truck prices is likely to continue. It is likely that the market will stabilize as various supply chain issues are resolved. Several key factors will influence the direction of truck prices in the near future:

1. Electric Vehicle Adoption: One possibly positive outcome of widespread electrification is economies of scale which traditionally have helped lower prices for new technologies over time. However, for those of us willing to take the plunge into the world of electrification today with a new fully electric pickup trucks are going to have to pay a premium for that cutting edge tech and heavy batteries.
2. Technological Advancements: With how rapidly electric vehicle manifesting and battery technology is evolving it is very hard to tell when electric vehicle prices will stabilize. In addition to electrification new emerging technologies such as autonomous driving features and enhanced connectivity are making their way into pickup trucks. All this tech will likely keep prices high for the forceable future.
3. Economic Conditions: Just like any other market the truck market is highly affected by the broader economic state of our country. Things like inflation, interest rates, and consumer confidence, will continue to play a big role in consumer behaver, and manufacturing costs. The truck market is at the mercy of the economy. Factors whether the Fed changes the interest rate, the inflation will continue to spiral out of control or other economic downturns are introduced in the market will dictate future pickup truck pricing.

Just like the broader car market with the introduction of EVs and various advanced technologies the pickup truck market is in a state of transformation with rising prices reflecting the increased demand for luxury, technology, and electrification. While the cost of owning a new pickup truck is higher than ever, consumers continue to flock to these vehicles for their versatility, performance and now, their cutting-edge features. As the global supply and economic markets continue to change so too will the pricing dynamics.