• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The CarGurus Blog

Daily coverage of the world of cars.

  • Cars for Sale
  • Car News
    • Car Shopping
    • Auto Shows
    • Green Updates
  • Tech + Cars
  • Industry Insights
  • Research
    • Tips & Advice
    • Car Finder
  • Video

Are U.S. Truck Prices Artificially Inflated?

Last updated: Nov 25, 2019 at 4:20PM
Published on: Aug 6, 2013 by tgriffith

The Detroit News yesterday morning said,

Some industry experts believe American consumers are paying thousands extra for pickup trucks because of a lack of true market competition.

Well that’s disheartening, isn’t it?

How many years have faithful buyers of F-150s, Silverados and Ram pickups been paying more than they should for their American workhorses? What about faithful repeat buyers, who religiously remain loyal to a brand and buy new on a regular basis? Those guys have, theoretically, paid tens of thousands of dollars more than necessary for their made-in-America trucks.

It is interesting that the only full-size pickups sold here are the trucks made here.

Now think about the market for sedans and SUVs in this country. There are makes and models from Asia, Europe and North America in every corner of this great country. But even the pickups from foreign automakers, the Toyota Tundra and Nissan Titan, are built in the United States.

Why is that?

You can thank a tariff from 1963 that subjects imported trucks to a massive 25 percent tax.

Since foreign carmakers can’t import a vehicle without paying the tax, the only trucks sold here are made here.

The Detroit News story continues,

By tamping down foreign truckmakers, the tariff has led indirectly to higher truck prices, which have inflated at more than twice the rate of all new vehicle prices in the past nine years.

What’s to keep prices in check when competition is eliminated?

In what could be good news for consumers, that 50-year-old tariff could go away. The U.S. government is in the process of negotiating with Japan, which is a market that has historically been difficult, or impossible, for U.S. automakers to enter. If Japan removes its restrictions and allows access, the U.S. will remove the truck tariff.

In all honesty, it’s all just political mumbo jumbo to me. I don’t think Toyota or Nissan would pull production of trucks from the U.S. if the tariff was removed, nor do I believe other automakers would enter the market here anytime soon.

If you really want to save money on a truck, pay no attention to the tariff and just search the used listings for one of the many thousands of trucks looking for new homes.

Do you think there should be more competition in the U.S. full-size truck market?

-tgriffith

Find Used Cars in Your Area at CarGurus

Used Ford F-150
Used Chevrolet Silverado
Used Ram 1500
Used Toyota Tundra
Used Nissan Titan

Filed Under: General Chat Tagged With: imported truck taxes, remove tariff, truck prices, truck tariff, U.S. truck prices

Reader Interactions

Comments

  1. AvatarJODYB says

    March 19, 2015 at 9:48 pm

    The price of all cars is artificially inflated. We have all heard the term, supply-demand. We have been told in Economics classes that is how prices are set.

    WRONG!!!! It’s all made up, pure fiction!

    Auto manufacturers like most manufacturers artificially inflate prices.

    There are hundreds of thousands if not millions of cars that go unsold every year. Auto manufacturers buy up large chunks of land to let them sit and rust away. Most of these vehicles are never sold and are eventually turned back into scrap metal.

    I remember arguing with a microeconomics professor and telling her that the entire theory of business in America is a fraud. If she could have failed me she certainly would have given me an F. Instead I had by far the highest grade in the class and my grade was the grade she had to set the curve at. I know what I am talking about.

  2. AvatarRandy says

    August 7, 2013 at 5:29 pm

    I’ve been wanting to replace my trailblazer with a pickup so I can still pull my cargo trailer and get a 5th wheel travel trailer, but I’m so turned off by the outrageous prices that I’m not in the market. Nothing exotic- a small V8, trailer towing package, 4WD the the prices start to near 40K, absolutely absurd. Used prices are in most ways even worse, with high mileage units going for asking prices of 85% of new. No way, Jose.

Primary Sidebar

What Should American Drivers Know About the Coronavirus?

Driver in mask

Cars for Sale

Screenshot of CarGurus.com homepage showing search functionality, menus, and imagery.

Sell My Car

Get More Out of Your Car Sale

Follow Us

Facebook
Twitter
Visit Us
Tweet
YouTube
Pinterest
Instagram

Editor’s Picks

  • From Rags to Riches: Driving a 2020 Nissan Versa to the…
  • Top 5 trucks for the worksiteBuying a Used Truck? These 5 Rule the Worksite
  • 2020 Nissan Leaf SL Plus front-quarter view with charge door open.We Tried City Living with an Electric Car
  • 6 Compact CrossoversThe Best Compact Crossovers—No Matter Your Budget
  • 2020 Mercedes CLA front whiteThe Mercedes CLA-Class: A Luxurious Super Commuter

Footer

Copyright © 2005 – 2021 CarGurus, Inc. All Rights Reserved

CarGurus, 121 First Street, Cambridge, MA 02141

Privacy
Terms of Use

Copyright © 2021 · Metro Pro on Genesis Framework · WordPress · Log in