Saving money on a truck is getting easier to do.
If you are in the market for a new vehicle, especially if that buy involves the purchase of a full sized pickup truck, you stand to save thousands of dollars off of the sticker price. Pickup truck discounting has always been the rule, but customers looking for a buy can expect to save even more this year and next. The reason? Fat inventories which must be pared before the next model year, which means the steep discounts are there for the taking.
Fat Inventories
High gas prices have not hurt the demand for pickup trucks, as GM, Ford and Chrysler report sales are up in 2011 over 2010. What most manufacturers haven't done is to adjust production for the months ahead as a tepid economic recovery means that fewer passenger vehicles are being purchased, a fact that is becoming evident as unemployment continues to rise or stay persistently high.
As of this publication, inventories of the Toyota Tundra, Ford F-150, Chevrolet Silverado, Nissan Titan, Dodge Ram 1500 and GMC Sierra are high. Through the first six months of 2011, full size truck sales were up, but that's because deep discounting brought customers in. Further discounting is expected, with GM likely to reduce many of its trucks by at least $5,000 or more.
In July 2011, TrueCar.com reported the following discounts among truck models surveyed: $5,350 per sale for the GMC Sierra, $4,880 for the Chevrolet Silverado, $4,450 for Ram 1500, $3,750 for Ford's F-Series and $2,654 for the Toyota Tundra. Information about the Nissan Titan was not available.
Year-End Sales
Customers not in an urgent need for a new truck may want to wait until the end of 2011 to make their purchase, especially if the economy remains weak and inventories elevated. Through summer 2011, GM had the highest inventories with supplies 50 percent above normal levels. Ram and Toyota are up by about 15 percent while Ford's inventory levels are in line with averages. Therefore, if you hope to find an excellent buy, GMC and Chevrolet may have the best deals for you.
With discounting already above $5,000 for some models, what can you expect at year end? Two things are likely: fully loaded trucks with all amenities and costing as much as $50,000 should carry deep discounts, perhaps knocking 20 percent off of the sticker price. But, even base models should carry discounts, particularly those featuring an unpopular color, limited amenities and seating for three.
Just be prepared to bargain as the discounts are there for the taking.
Matthew C. Keegan is editor and publisher of "Auto Trends Magazine." Matt is also a contributing writer for Andy's Auto Sport and affiliated websites, an aftermarket supplier of quality auto parts including Mazda3 fenders and wings.
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