10 Reasons Why Trucks Are More Expensive Than Cars

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Trucks are so expensive to buy nowadays, and their cost keeps increasing. The overpriced rates of trucks are pretty shocking compared to what they used to cost back in the 1990s. Moreover, trucks are currently even more expensive than many luxurious cars for various reasons.

Here are the ten reasons why trucks are more expensive than cars:

  1. Higher manufacturing costs
  2. Popularity
  3. Trucks are more capable than cars
  4. Trucks often have more features
  5. Marketing strategy
  6. Greater reliability and durability
  7. Low supply
  8. Lack of competition
  9. Brand choice
  10. Low maintenance

To understand the reasons behind this situation, let’s go into detail about the high cost of trucks compared to cars.

Truck prices are increasing due to many reasons

1. Higher Manufacturing Costs

Manufacturers use more materials to build pickup trucks because they are bigger. As a result, they come with larger brake systems and frames and bigger wheels and tires that improve their functionality.

Unlike the pickups of the 1990s that were a single cab with two doors and could transport only two people, nowadays they have four doors and can seat five people.

The more metal, glass, rubber, and plastic that the two-row trucks need, the more expensive they are to buy, as the carmakers have to recover their money with a profit. Moreover, they contain more powerful engines and transmissions that are expensive to purchase and install.

2. Popularity

Trucks are quite popular and in high demand because people are willing to pay any amount of money to own them. The manufacturers of pickups know this, so they add huge markups on them.

If their demand were low, the auto companies would be forced to reduce their cost to get people to buy them. But because they are all aware of their popularity, no company is willing to lower their prices in order to get other carmakers to reduce theirs too since they want to maximize their profits.  

3. Trucks Are More Capable Than Cars

These days trucks have the sought-after stylish look that cars have always had and also share the same luxuries. They are fitted with a driver information center for you to monitor your car, leather seats with heating and cooling, AC, a high-quality sound system, and power outlets.

But unlike the cars that predominantly transport people, you can also use trucks to haul and tow campers, trailers, and boats because of their powerful engines and strong frames.

Moreover, they are built to carry heavy loads so you can transport all kinds of goods in their bed. So because they are more versatile than cars and yet have similar luxury features as cars, this raises their cost.

Besides that, they are great off-roaders that can easily travel through rough terrains and on snowed roads, unlike sedans and hatchbacks. This is because they are four-wheel drive and high-ground cars.

4. Trucks Often Have More Features

Modern trucks come with in-built power generators, towing cameras, and a backup camera. These new features make certain tasks like hauling, delivering products, and clearing snow easier for you.

However, these attributes are added at a cost. The more features you desire in your truck, the more expensive it will be to purchase it. That’s why the F-150 XLT costs more than the F-150 XL because it has a better entertainment system, a remote keyless entry system, an automatic anti-theft alarm, and enables voice commands with SYNC 4.

5. Marketing Strategy

Carmakers offer longer loans of 72 to 84 months that spread out the price and make trucks seem cheaper than they actually are. With this marketing strategy, manufacturers can hide their inflated prices while at the same time luring truck lovers into buying them.

These companies also disguise the high prices by offering huge discounts on the trucks that get buyers to think that they are getting the vehicles at a bargain.

6. They Are More Reliable and Durable

Trucks are built solid and secure to last for over 20 years without having many mechanical problems. This fact helps them have a higher resale value than cars and, in turn, makes used trucks as expensive as new ones.

Yet the number of people willing to resell their old trucks is low because of their usefulness and durability. Because the used pickups are also expensive and have low availability, there’s no pressure on the automakers to lower their prices.

7. Low Supply

Even before the pandemic that led to the shutdown of factories during lockdowns and reduced the supply of trucks, truck production was still not enough to satisfy the demand.

The number of individuals and companies that need trucks to run their jobs exceeds the supply, yet some people want to buy trucks as a status symbol. As a result, the high demand with low supply drives their prices up.

8. Lack of Competition

The 25% tax imposed on foreign pickup trucks to protect the American truck manufacturers from stiff competition stopped foreign carmakers from importing their affordable cars into the market. Something which would have driven down the prices just like the introduction of Toyota and Honda cars in the US market did for the car market.

Instead, companies like Toyota and Nissan that want to compete in the American market also build their trucks in the country, bearing the same manufacturing costs. So they are forced to charge high prices just like the big three manufacturers to earn profits.

9. Brand Choice

Brands sell pickups at different prices. If you prefer to buy your trucks from the top 3 truck manufacturers in America, you will pay more because they are premium brands, and their trucks cost more.

However, smaller brands or less popular car companies can offer you regular trucks at a lower price as their pickups cost less to build.

10. Low Maintenance

When a pickup truck needs repairs, the required parts are cheap and easy to find. Also, the repairs are relatively simple to perform.

Manufacturers factor this in their pricing because they know that they are offering you a car that’s easy to maintain.

Pickup trucks have low repair prices

Sources