The Detroit Three are engaged in a truck war and you can benefit.
If you happen to be in the market or only thinking about buying or leasing a new pickup truck, now is probably a very good time to make a move. According to a Reuters analysis, the Detroit Three automakers are having themselves something of a “truck war” specifically among full-size pickup trucks. Trucks like the Ford F-150, Chevrolet Silverado and Ram 1500 have long had high profit margins, and Americans have had a long love affair with them in return. More than ever, these automakers are fighting for your business (and hard-earned dollars).
Reuters found that Ford is offering discounts of up to $12,000 on the 2018 F-150, the longtime best-seller in its segment. Just last month, more than 80,000 examples were sold, despite a supplier factory catching on fire and causing production delays. Chevrolet and Ram responded in kind to Ford’s incentives with their own, up to $13,000 on the 2018 Silverado and $16,000 on the 1500. And get this: the average transaction price for full-size pickups is around $42,000 to $45,000. According to J.D. Power, the average transaction price for a car during that same month was just over $32,000. Question is, how are these automakers still churning a profit while still offering generous discounts and other factory and dealer incentives?
By giving up a little bit of the profit per vehicle sold in exchange for greater sales volume. As summertime gets underway, automakers and their dealerships will be more anxious than ever to offload 2018 model year product before the 2019s arrive. So if you’ve been considering that full-size pickup truck but haven’t gotten around to buying, now’s the time.