Unsold Pickup Truck Inventory Causing Prices to Drop
Getting a great, affordable deal on a pickup truck may seem too good to be true. But there’s never been a better time than right now to buy pickup trucks at reasonable prices – and that’s because, as Bloomberg reports1, many dealerships are being left with excess inventory due a combination of market demand shifts and overproduction of trucks by manufacturers.
If you’re in the market for a truck, acting now could save you substantially. Here’s what you need to know about pickup trucks: why they’re more affordable now, and what you need to do to find the best deals.
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Why Exactly Have Truck Prices Been Dropping?
With high gas prices and less desire to haul around in a big vehicle, trucks saw a detrimental decline over the past decade. No one wanted an SUV when there were more efficient, more capable sedans and family cars to choose from. Dealerships were flooded with pickup trucks because most dealers couldn’t sell them. Meanwhile, as sales slowed, automakers continued making new SUVs at the same rate as years past.
Even though truck sales are seeing a second wind in the U.S. right now, sales still aren’t where they need to be, pushing dealerships to promote discounts at many times throughout the year.
So, in an effort to make sales, many truck dealers are continuing to fight for customers with low costs on new and old models across the board. As they continue to flood their own dealership lots with new models and old models take months – or even years – to sell, auto companies are lowering prices, offering special financing deals, and presenting truck shoppers with enticing lease options.
Monthly Payments for Pickup Trucks are More Affordable Than Ever
If you want a truck, now may well be the best opportunity you’ll ever have to get a significant deal on one. Two developments in the truck marketplace have combined to put considerable downward pressure on the prices of new trucks.
The first is the fact that off-lease used trucks have become widely available over the last two years, The Chicago Tribune reports2, giving buyers access to low-mileage, relatively “new” used vehicles. Consumers simply aren’t keeping their trucks very long, nor are they choosing to buy them once their leases end.
The second is a more general phenomenon in the auto market, which is the shift in consumer demand away from sedans and towards SUVs and pickups, as Forbes notes3. This shift has left many automakers with excess supplies of trucks and luxury pickup trucks that were once in higher demand. Combined, these two effects have created a surplus of new truck inventory in a market where demand is waning, driving prices across the board down.
This situation has led manufacturers and dealerships to offer various deals that bring down the monthly payments on new trucks. For example, U.S. News reports that GMC is offering $11,032 off the MSRP of the 2019 Sierra 1500. The site also reports that the current deal on the latest RAM 1500 will get you on the road with 0 percent financing for 60 months and up to $5,500 in cash back depending on which trim level you choose. Also, the 2019 Nissan Frontier gets zero percent financing for 60 months along with up to $3,495 in cash back.4
Between cash incentives and low financing rates, deals such as these are popping up all over the place, forcing every manufacturer to compete and offer more attractive discounts month after month.
How to Find the Best Truck Deals
Even though pickup truck manufacturers and dealerships are offering considerable deals on their inventory, you’ll still have to do some work to find the best prices. Searching for deals online is often the best option, as it allows you to see both manufacturer and individual local dealership incentives, as well as compare the offers that are available on different models of trucks. In addition, many deals are placed online exclusively in order to reach a broader range of potential customers.
To save even more money, you can also wait for dealerships to discount unsold inventory. Keep an eye out at your local dealerships to find out when inventory clearance sales are occurring. If you can make your purchase during one of these sales, you can save hundreds or even thousands of dollars.
If you’ve always wanted to drive an incredible new pickup truck but never thought you could afford one, right now there are opportunities to save big. The auto market is making pickups more affordable than usual but this climate won’t last forever. Start looking for deals now if you want to take advantage of the available incentives because odds are they won’t last long.