TYLER, Texas — Prices on pretty much everything are climbing, and your ride is no exception. In East Texas, we're truck country, but the costs of buying a new one have gone up.
"Last year, I got a four-wheel drive Ford Ranger, and that was $42,000. So as you can imagine, at first glance, that seems like a lot of sticker shock," Mike Redman, an East Texas truck owner, said.
Dealers like Zak Nix from Yates Buick GMC are seeing that feeling from a lot of their customers too.
"We had a lady come in … that had a 2003 Pontiac Vibe that she probably paid 17 or 18,000 for new … and she priced a [20]16 Camry from us. She just couldn't believe how much it was, but … she hasn't shopped in the market for 19 years," Nix said.
Kelly Blue Book data shows that the average transaction price for a full-size truck in January 2022 is just over $59,000. Compare that to January 2019, when the average price was just over $49,000. It's an over $10,000 price increase in just three years. The biggest problem right now is production - it's down because of COVID, and demand for new trucks is outstripping supply.
"Where we used to keep 60, 70 cars at a given time now, we're lucky to have eight or 10 cars on our lot," Nix said.
Prices have gone up, but the good news is used car values have too. If you have something to trade, you're in a stronger position, Nix said.
"The same car that you bought two years ago, might be worth more than you paid for it two years ago, depending upon the mileage. So it really is a really good time to trade," Nix said.
Finance offers are out there as well. Some dealers in Texas' larger cities are charging above manufacturer suggested retail price, or MSRP, and that's bringing some buyers out to East Texas dealerships.
"Some of these people that are coming from out of town … we're selling the car (at) MSRP in hopes that we retain the customer. Because, you know, that's basically how you build your business and service and everywhere else," Nix added.
It's a customer base that's more important than ever in a time where the industry is as uncertain as ever. But for East Texans like Redman, the price change is still a shock.
"From my first four-wheel drive pickup truck to a similar type of truck, 40 years later … $42,000, that's sticker shock no matter how you want to look at it," Redman said.