In 2009, I wrote a post titled “Why Do People Buy Trucks” that explained the most common reasons consumers gave for buying a pickup. This data came from Ford market research:
As you can see, towing and work dominate the results, with about 1 in 6 buyers buying because of “image.”
While I believe these numbers understate the “image” market (a lot of the “towing” people talk about is infrequent and well within the capabilities of smaller vehicles), it’s the best data we have about the purpose people have in mind when they buy a truck.
However, this data doesn’t shed much light on how people decide to buy a specific make and model. Fortunately, recent data published by JD Power paints a very interesting picture.
According to AAA’s Daily Fuel Gauge Report website, the average gallon of regular gas costs about $3.59 today. According to a recent study by Experian Automotive, a $1 increase in the cost of a gallon of gas would have minimal impact on consumer buying behavior.
if gas prices increased by $1, in an average month with 1 million unit sales, the Small-Car Economy segment volume would increase by 7,000 units. Conversely, the same price increase would cause the Full-Size Pickup Truck segment to lose [5000 sales]
That’s right – according to Experian, $4.60 per gallon gas would barely effect new truck sales. Does that sound right to you?
Extended warranties, love them or hate them, are always a consideration when buying a new Toyota Tundra. What things should you consider when buying one?
According to AutoTrader.com, the average asking price of a certified pre-owned Toyota Tundra increased 8% between March 2010 and March 2011, from $24,732 to $26,684. While AutoTrader.com says that the increase in pricing may be a result of speculation regarding a vehicle shortage, that seems a little unlikely. The market usually reacts to shortages rather than forecasts them.
Instead, this is probably just another sign that the Tundra’s resale value – and demand with consumers – is top-notch.
Tundra resale value is high because:
It’s always great to say that the Tundra’s resale value is the best in the industry, but it’s starting to get a little old, isn’t it? We’ve talked at length about the Tundra’s superior resale value, citing studies from independent authorities like IntelliChoice and KBB.com that show the Tundra is number one in terms of resale.
Allow me to add Edmunds.com to the list for 2011. According to their newest study, the Tundra has the highest retained value of any light-duty pickup truck. Surprised? Me neither.
What is interesting, however, is that this year’s Edmunds.com study is an even more accurate measure of resale than any year prior…and that the way Edmunds is calculating ‘retained value’ should have favored Ford and GM a lot more than it did.