Americans are giving up on Ford Chevy and Ram pickup truck sales are finally falling pops and you can't be too surprised after years of full-size pickup truck sales gains and also price increases we are finally starting to see customers say no more and market share dwindle are you surprised by this I can't imagine you are uh I am not surprised at all it what surprised me is that it's taken this long to finally get to this point um you know pickup truck price PR average transaction prices have been skyrocketing for years and and at a certain point you have to begin to wonder who's buying these pickup trucks if the average transaction price is in the mid $60,000 range 6566 67,000 well apparently not as many Americans anymore based on first quarter results all right let me put you on the spot dad what do you think the average transaction price was for the Chevy Silverado in the latest data we have from General Motors $63,000 now this is the one bright spot I can't believe I'm saying that $61,200 is the average transaction price most recent data we have from General Motors let's go to Ford next what do you think the average transaction price is for an f-s Series pickup truck 67,000 $67,000 and10 on the money now dad the real Big Kahuna from stellantis the Ram pickup truck what do you think a Ram pickup truck cost you on average from the most recent data we have 66,000 $ 69,3 169 that's after incentives for all of those it's no wonder we're seeing pickup truck sales full-size pickup truck sales and market share decline when the average transaction prices for a fullsize pickup truck are north of $61,000 or if you're looking for that Ram pickup truck 7 Grand that that that's crazy I mean those are just crazy numbers um and the fact that that Chevy and General Motors is at like 61,000 um speaks volumes as to why uh they haven't seen the same decline in pickup truck full-size pickup truck uh sales that Ford and and RAM have um so I mean if you just look at the numbers and I'm sure all the executives at at all of these major brands are they're going we need to lower our average transaction prices which means we either have to have greater more uh expensive incentives or we need to produce less expensive lower MSRP pickup trucks so there's a change a Comon yeah there's a huge change coming there's also an impact on dealers we actually saw Ford Rev their stair step program for lingering 2023 F-150s which there are tens of thousands still on dealer Lots there are still new 2023 F-150s being shipped to dealers right now even amidst that you know other brands the 202s are right around the corner so we see the OEM and the dealers starting to take action here to make the prices attainable so that people actually purchase these things we have the video went viral on YouTube a long time ago what happens to unsold new cars there is no such thing as an unsold new car but these full-size pickup truck prices are putting that to the test man we've seen some of these trucks sit for well over a year on dealer Lots we are we are seeing the American public pulling back and that's not a good sign for the manufacturers what we have seen is the midsize pickup trucks which are traditionally more affordable because they're smaller we've seen sales of those climb dramatically but as fullsize pickup truck sales decline midsize pickup trucks like the Maverick the Colorado um whatever the GM version yeah they're they're growing while full-sized pickup trucks are Contracting um we will see the manufacturers come up with really strong incentives both to Consumers and to the dealer body um and I believe we'll see them produce more lower priced entrylevel pickup trucks that that the American public really clamors for one other fascinating angle to all of this Dad and we've had many community members send us photos of dealer Lots full of full-size pickup trucks one other interesting angle to all of this is floor plan cost so as interest rates which we cover on this channel all the time interest rates are through the roof they're very very high most dealers pay uh or Finance excuse me they do not pay cash for these fullsize up trucks that they're buying from the automaker and that the automaker is trying to pretty much like shove off of their lots and onto the dealer lots and so floor plan expense on these vehicles is through the roof as well especially as they sit for months on months on months or in the case of those 2023 F-150s some of those have been sitting for over a year Ram sales like you mentioned earlier where we've seen it you know kind of uh taken in the shorts the most down 15% GM sales only down 1.2% on the Silverado and Ford F-150 sales down 10% so like RAM and Ford dealers are carrying a lot of floor plan cost every single month as these vehicles sit as well so there's incentive like real Financial economic incentive to get rid of these full-size pickup trucks the issue is like we started with it's the average transaction price it's just too damn high and we have seen statistically where the cost to floor plan inventory has gone from a profit Center because dealers were selling Vehicles so quickly and the floor plan assistance they got from their manufa facturers actually turned into a profit for them to it's now maybe a $100,000 swing in the opposite direction so maybe if they were making 10 or $20,000 in profit on floor plan assistance now they're writing a check for $100,000 to their Bank to cover the cost of financing their inventory that's a huge difference and and if your average transaction price for your Ford pickup truck is $67,000 and just south of 70 on a Dodge Ram um you know those Vehicles sitting there cost a lot of damn money it you know it is it it is impacting the manufacturer the dealer and the customer all right one other proof point to this entire story would be the Chevy tracks now you might be saying to yourself Zach why the hell are you talking about a Chevy tracks in a full-size pickup truck video because the Chevy tracks actually outsold Cadillac in the first quarter of 2024 again we're not talking full-size pickup trucks but just put that into perspective one vehicle that has a under $25,000 average transaction price outsold an entire luxury brand from the same automaker there is a real interest sales are up 500% year-over-year for the tracks there's a real interest for affordable automobiles you could also look at like Toyotas and Honda sales as another proxy for you know consumer interest in affordable vehicles and again fulls size pickup trucks at 61 67 and 69 ,000 average transaction prices does not does not hold water here and many people are looking elsewhere and also I think a lot of people are wondering that do I really need that full-size pickup truck like you know I can just get from point A to point B and something way more economical yeah the uh the um American love affair with the full-size pickup truck seems to be coming to an end all right Dad you can sell your car on car Edge what's the deal the deal is you just plug in your VIN number and we'll get you offers from local dealers in minutes seconds cars.com sell [Music] okay
