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Luxury Pickup Trucks Continue To Steal Sales From Premium Brands

The pickup truck isn’t just a working man’s tool any longer. Instead, it’s for the modern renaissance man. Trucks can carry families comfortably, tow a trailer or boat on the weekend, haul tools during the week and veer off of the beaten path when deemed necessary. That kind of thinking has turned luxury pickup trucks into true rivals for traditional luxury brands.

Bloomberg reported Tuesday that buyers are more often trading in their premium sedans and crossovers for luxury pickup trucks. At General Motors, the GMC Sierra and Chevrolet Silverado see trade-in rates of 15 and 9 percent, according to Edmunds data. At Ford, its 13 percent of F-150 buyers, and Ram sees 9 percent of buyers trading in cars from established premium makes. And we’re talking BMW, Mercedes-Benz and Audi. At Ram, the division said it even gets some Cadillac owners stepping into luxury pickup trucks like high-end Ram 1500 models.

2019 Chevrolet Silverado High Country exterior - August 2018 - Wyoming 010 - front three quarters

And the data points are good for traditional premium brands, according to Ivan Drury, a senior analyst at Edmunds. “One of the main tenets of truck sales is, once you get a truck owner, they have very high odds of never leaving,” he said.

It’s unlikely any customers who left their Mercedes-Benz C-Class will ever return to the brand, in other words. Indeed, pickup truck sales rose in August while Mercedes-Benz saw sales plunge 20 percent. BMW made a minor 1 percent gain while Audi grew 5.5 percent.

2019 GMC Sierra Denali 1500 - First Drive - Exterior 009 - rear end

Back at GM, the GMC brand has worked to cultivate premium buyers and keep them in its portfolio with the ever-expanding Denali sub-brand. And it’s working. Denali vehicles account for one-third of all GMC sales in 2017 and the average transaction price for a new GMC grew to $43,800. In comparison, the average GMC sold for $32,600 in 2007.

Acadia, Sierra HD, Yukon XL and Yukon buyers were most likely to purchase the range-topping Denali model with 30 percent, 50 percent, 63 percent and 54 percent of vehicles sold boasting a Denali badge.

Former GM Authority staff writer.

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Comments

  1. This is exactly why the trucks are getting so expensive. A bunch of suburban dads who have zero use for a truck think it makes them look macho at the local starbucks so they want a 4×4 with all the soft leather and gizmos their previous luxury car had which significantly drives up the cost. That truck will never be put in 4wd but because the sticker brings masculinity they believe they buy it which is why 4wd is now a $4k option and trucks are cresting $70k for a half ton, which in turn makes the base models for those that actually use them more expensive since costs get spread across the line. And then they have the audacity to complain about the ride… Stop buying trucks for the image you yuppies!

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    1. While I do not own a high option truck I must say that it is my money and I will purchase whatever the heck I darn well please.

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    2. A fashion statement, as someone wrote recently on another of those pickups. What Comon sense writes above is in my view also the main reason for Pickup buyers here in Germany, except some gardening businesses, who chose a Pickup over a real truck probably because of the low position of the cargo bed of a pickup (between the wheels) compared to a real truck with a cargo bed above the wheels (which then makes it easier to unload and load the machinery) — but then they have the risk of scratching the extension of the passenger car body around the cargo bed with sculpted stamped sheet metal with a varnish coat in body color … I have never understood why people chose such a station wagon with open cargo area from which every thief can take out whatever is in there and every hoodlum can throw his garbage in.

      But that is USA … and the development of real light commercial vehicles has been slowed down by the so called “Chicken Tax”, i.e. an import duty with a tariff of 25%.

      The only real practical use of such cars I see in their military use in Third World countries as cheap gun mount or as a police patrol car for SWAT teams roaming the streets sitting back to back on longitudinal benches, ready to jump off over the sides without losing time by having to open doors.

      Strange stuff, this.

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  2. Before Porsche started selling the Cayenne CUV, Denali (not all of GMC, just Denali) was selling more vehicles than Porsche Jaguar and Land Rover combined in the US. And that was also at a time when Denali only had a few models.
    I’m sure nowadays Denali outsells all of Porsche alone.

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    1. The Denali has been called the poor man’s Cadillac. Now they cost as much if not more than one. I was not aware that Denali outsells Porsche, thanks for that tidbit.

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  3. The key is to build name equity. GMC has done that over the last 20 years.

    To be able to make a high end truck and sell it at as premium price is a auto executives dream. it is like having a press and printing your own legal money.

    The cross section of buyers for these vehicles are very wide. You have the Suburban dads like stated above but you have much more. You have farmers, Construction people you have even average truck owners that have no interest in Cadillac’s and or driving a SUV moving to these.

    The idea of having a vehicle that can deliver a comfortable ride and options but yet also deliver or haul things an ATS could never touch well it is great.

    I own a Canyon Denali. I really went to buy a SLT but when I found a deal for the Denali for the same price I took the extra options. I was well below MSRP so it made me a great deal on a new truck.

    I was not prepared for the Denali experience though. I knew people liked them and many were sold but the real experience is how people treat it. When you say you own a Canyon people oh that is nice. Then they see it is a Denali and it changes their whole perception. You get comments like Oh now we know who is making all the money etc.

    I could care less what they think about what I drive but many people like the ego effect as that is why BMW sells so many cars. Cadillac would kill for that product image. I just loved the heated wheel, cooled seats and the added extras at the same price for a less optioned SLT.

    Anyways This is a good thing for GM and I hope the image carries on till I am ready for a new truck as it may get me a little more resale as Denali models all appear to hold value well. That is a plus for the owners.

    As long as people are willing to pay the price more power to GM.

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  4. The luxury brands really don’t have anywhere near the same prestige anymore. In the past, if someone drove a Cadillac or an upper series Buick the world could see you had “ arrived “.
    I drove Buick Electras and Park Avenues for years but after the last full size sedans went away my vehicle of choice became a Chevrolet Suburban. The Suburban has a solid quiet ride that the new little sedans don’t come close to.

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  5. I think what is lost on some is to more affluent buyers auto image still counts.

    While average buyers often settle for what they need and buy the boring small CUV and treat it like an appliance. Others still like to enjoy the image in social circles of high end or special models that make a positive image on them in their circles.

    As for trucks they are growing in popularity in all parts of the world but Europe. Even there they have some enthusiast there.

    I am now shipping truck parts for American trucks everywhere. Down under, South America, the Middle East etc.

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  6. GMC needs to move further upmarket as a true luxury pick up when in Delani trim. Interior should be given a much thought as Cadillac with same bells and whisles.
    Mercedes will entually be a big player in the US truck market. Earth Rover, too.
    GMC and Chevrolet are still too ssimiliar which harms Silverado sales.
    I am convinces US GMC, Buick and Cadillac can all offer compelling luxury visions.

    Reply

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