Pickups Trucks Are Outselling Cars In 2020

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Sedans and smaller cars used to dominate the market as the most popular, but that trend has shifted in pickup trucks’ favor this year.

For the first time in recent memory, pickup truck sales outpaced car sales. While the recent surge has to a lot to do with the coronavirus pandemic halting car production, the other reason is that car sales have been slowly declining while pickup and SUV sales are increasing across the board.

Growing Trend


FCA has benefitted from a boost in car sales.
via caranddriver.com

Recently, there has been a slow shift towards pickups and SUVs fueled by a particular set of buyers increasing while others have decreased. Households, for example, earning between $50,000 to $99,000, have been buying pickups while lower and higher-income buyers have reduced across the board.

Related: Here Are The Most Obscure Pickup Trucks You Can Still Collect Today

Market Trends


Middle income Americans fueled by incentives have driven up pickup sales
via motorauthority.com

Since 2014 GM has seen their pickup sales jump from 10% to a third of overall sales with similar results at Chrysler and Ford. The trend has meant that the manufacturers have increased their higher-margin truck offerings while reducing their car choices.

Incentives


Since 2014 pickup sales have slowly increased while car sales have decreased.
via carsdn.co

It’s not just a desire for cargo space and pulling power that is fueling the trend. Stimulus related loan incentives have pushed zero-interest loans from 4.7% of total sales to 25.8%. People taking advantage of these incentives have started to cause a shortage in pickup supply as manufacturers have paused car production. And that will remain true until plants are allowed to reopen.

The good news for manufacturers is that the demand won’t just go away. As soon as companies like Ford resume production, they’ll have customers lined up around the block waiting to get the 2021 F-350 or the newest Ford Ranger. Customers may decide to go with alternatives in the meantime, but a majority will likely postpone their purchases until recent models are restocked.

Next: These Were The Best-Selling Pickup Trucks Of The Last Decade


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