A 2024 Chevrolet Silverado EV RST all-electric pickup is seen at the International Auto Show at the Jacob Javits Convention Center in New York, April 13, 2022.
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Car buyers are paying more than ever for new vehicles, and pickup trucks are driving up average costs in at least two states, According to reports Courtesy of Cars.com Edmonds.
More than a quarter of car buyers in Texas and Wyoming committed to paying more than $1,000 a month in the second quarter, Edmonds said, which experts say is due to higher purchases of larger trucks in those states.
Edmonds found that in seven other states (Colorado, Kansas, Louisiana, Montana, Nebraska, North Dakota and Utah), more than one in five shoppers Spend more than $1,000 a month on vehicles.
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Another Edmunds says the average monthly car payment reached $733 in the second quarter of this year, a new record Report. The average monthly payment for all types of trucks is $913.
Large trucks are the third-biggest auto sales segment in the U.S., behind compact and midsize SUVs, and account for the “top tip of the scale” when it comes to average car payments, said Joseph Yoon, consumer insights analyst at Edmunds . .
“Trucks are doing the most damage in terms of driving up prices in terms of volume,” he added.
Tight inventories and sky-high prices are keeping truck buyers on the sidelines, but shoppers are seeing better deals as the market cools. Buyers in Texas and Wyoming are returning to the market and financing $50,000 vehicles, said Tom McParland, a staff writer for the auto website Jalopnik and operator of Automatch Consulting, an auto-buying service.
Larger trucks may increase costs
Full-size pickup trucks, which can cost more than $1,000 a month for a new vehicle, will account for 14.5% of the overall market by 2022, according to auto industry analyst Paul Waatti.
“If it captures close to 15 percent of the market, and most average prices are $50,000 to $60,000,” he said, “that will significantly push up transaction prices across the industry.”
Varti added that trucks have evolved from utility vehicles to highly desirable vehicles that consumers are willing to spend a lot of money on, and automakers are taking notice.
Ten years ago, trucks could top out at $60,000. Today, prices for midsize trucks have soared to that level, and full-size pickups are approaching $100,000, he said.
“People don’t just use trucks for work anymore; they’ve become a status symbol,” Watty said.
“Cash Cowboys” in Texas and Wyoming
2024 Chevrolet Silverado HD ZR2 Bison
General Motors
Demand for pickup trucks has been strong in Texas and Wyoming, Varty explained.
Pickup trucks have larger fuel tanks, giving these vehicles longer range. Many drivers in Texas and Wyoming have to make long drives between towns or through the mountains.
Additionally, pickup trucks benefit the jobs that many people do in these fields, such as farming, ranching, and energy production.
So, in areas that require a lot of heavy-duty hands-on work, having a pickup truck can be key, Varty says.
You have regular guys and you have some rich cowboys.
Tom McParland
Automatch Consulting Operator
“They also talk to that cowboy-like buyer,” he added.
Many ranchers and oil and gas workers in Texas, Wyoming and similar states have more cash on hand than people in other parts of the country expect, experts say.
“It’s not surprising to me that a quarter of the population in Texas has a lot of cash,” McParland said, and might think, “I couldn’t buy these luxury trucks before, now I can.” gone.”
“There are regular guys and there are some rich cowboys,” he added.
Correction: Joseph Yoon is a Consumer Insights Analyst for Edmunds. Earlier versions misrepresented his name and title.
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