2020 Ford Motor Co. F-150 trucks sit on display at a car dealership in Peoria, Illinois, U.S., on … [+]
Stuck with pandemic- thwarted vacation plans, opting to hit the road rather than the airport, Generation Z and older millennials turned to pickup trucks according to a consumer study released Thursday.
The survey conducted in September by vehicle research and buying website CarGurus.com queried 1,081 pickup truck owners and revealed not only are younger consumers buying pickup trucks, they don’t adhere to the long-standing tradition of brand loyalty in the segment.
Madison Gross, Director of Customer Insights at CarGurus
“The data shows that younger truck buyers are coming into the market, but the question remains how long they will stay both with their brand and with the category for the long term.” said Madison Gross, Director of Customer Insights at CarGurus.
CarGurus defines Gen Z/millennials as individuals 18-39 years of age.
According to the study, pickup truck buyers were 24% more likely to be Gen Z or millennials compared to previous truck owners. That same group’s buying decision appeared to be affected by the pandemic since the data reveals they were two-times more likely than older buyers to have originally planned to purchase a passenger car.
Specifically, while 15% of all respondents said they were planning to buy a car before the pandemic spread but later changed to a pickup truck, Gen Z/millennials represented 17% of that total compared with 8% of older drivers.
The biggest factors appear to be related to the pandemic as 40% said they decided on a pickup for road trips, as compared with 31% of older buyers. Almost a quarter (24%) of the Gen Z/millennials responding said federal economic stimulus checks were a big factor in their buying decision as the government money helped them swing the big sticker prices on pickups.
Pickup trucks sales have remained strong despite the economic difficulties caused by the pandemic and a Cox Automotive forecast of October sales predicts sales of full-size pickups will come in 10.1% better than they were in October, 2019.
Still, the CarGurus survey reveals even temporary enthusiasm for the pricey pickups faces some economic cold water.
“Our study shows a tale of two different pickup truck trends. While there is certainly excitement for these vehicles among consumers, that is offset by those that have affordability concerns,” said Gross.
Vehicle prices in general have been continually creeping up. According to J.D. Power, the average transaction price for cars and trucks in October is likely to reach a record $36,755. The previous high for any month was $35,961 this September.
For younger buyers, it all may mean they’ll be priced out of the pickup truck segment for subsequent purchases. According to the CarGurus survey, 17% of current truck owners say the “probably” won’t buy another truck with 20% of Gen Z/millennial pickup owners saying they’ll probably choose something else for their next purchase compared with 12% of older owners.
Even if they do buy another pickup, younger owners are also very willing to bail on their current brand—an anomaly in a traditionally brand-loyal segment.
According to the CarGurus survey, while 22% said they were “very” or “extremely” likely to switch to another pickup truck brand compared with 15% of older drivers.
The affordability issue is affecting loyalty in general as 66% of all respondents said they’d switch brands if the price of their preferred brand increased $10,000.
2022 GMC Hummer EV pickup truck.
Looking ahead, Gen Z/millennials may want to be putting some money aside to satisfy one pickup on their wish lists—one that runs on electricity. While 10% of all respondents said they will “probably/definitely” own an e-pickup in the next year, 18% of Gen Z/millennials expressed that sentiment and 40% said they’d most likely have one parked in their driveways in the next decade. That’s if they can afford one.
