The pickup truck has gone from a humble, utilitarian farm vehicle to an aspirational status symbol, and automakers have been all too happy to cash in. Now, the prices of these vehicles is getting so high that they’re raising average monthly auto payment data in several states.
For instance, in Texas and Wyoming, a quarter of vehicle shoppers are paying more than $1,000 a month to finance their new vehicles. Experts say that those numbers are up thanks to the buyers of big pickups.
In the second quarter of 2023, average monthly auto payments reached a new record of $733, according to Edmunds. By contrast, the average monthly payment for all types of trucks was almost 25 percent higher, at $913.
Read: GM Leads The U.S. Sales Charts In The First Half Of 2023 At Toyota’s Expense
As the national averages suggest, Texas and Wyoming weren’t the only states paying a lot for trucks. More than 20 percent of shoppers in Colorado, Kansas, Louisiana, Montana, Nebraska, North Dakota, and Utah were also committing to paying more than $1,000 per month for their trucks.
Despite being the third-largest vehicle segment in the U.S., trucks likely had the largest impact on average monthly payments, experts told CNBC. Their combination of high volumes and high prices mean that trucks are affecting market wide trends.
Ironically, it may be because truck prices are coming down a bit that they are allowed to have such an impact on the market. During the pandemic, tight supply lines and high-prices affected pickup sales. Now that things are normalizing, buyers are pouring back into the segment.
In addition, relatively low gas prices and high interest rates may also be having an impact. Buyers are paying significantly more per month than lessees, studies have found, and the gas-guzzling trucks are still susceptible to high fuel prices.
