Industry News: Average Transaction Price of Trucks Are Rising

[William Maley]

William Maley

Staff Writer - CheersandGears.com

June 11, 2013

Pickup Trucks continue to be the lifeblood for the American automaker's financials. A very good thing since truck sales seems to be in very good health - in fact Automotive News says that truck sales are arguably healthier than they were pre-recession, despite the volume is still below pre-recession levels. How? The per-unit profit has increased massively, outpacing the industry average by more than double since 2005.

Edmunds says the average transaction price of pickup truck stands at $39,915 – a 8 percent increase (after inflation) when compared to 2005's average transaction price of $31,059.

How important are trucks to American automakers? Well a Morgan Stanley analyst says 90 percent of the Ford Motor Company's 2012 profits come from the F-Series. General Motors follows closely behind with two-thirds of their 2012 profits coming from the Chevrolet Silverado and GMC Sierra.

Analysts say the near-term future looks very good for trucks. Thanks to the recent increases in the housing market, truck sales are expected to keep climbing.

Source: Automotive News (Subscription Required)

William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster.

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[cletus8269]

ouch, that's why i'll probably never own another new off the lot truck...

[SAmadei]

How long before Chevy sells its first 6-figure Silverado?

[G. David Felt]

Yea, I can go for a 1 or 2 year old lease or demo unit and not take the hit in the wallet. I think I have bought my last new auto since the hit is not worth the single or two digit mileage and new fresh smell.

[Drew Dowdell]

It's weird that trucks don't lease better then.... old trucks still really hold their values. Since I've been in the market for a while, I've seen things like Titans with 2008 75k miles and dealers are asking $19,999, 1996 S-10 extended cab 4x4 with 60k miles for $14k... a 2 year old Ranger V6 4x4 with 50k miles is likely to run about $17k....