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Winter is coming, er I mean deflation! It’s no surprise that vehicle prices, especially when it comes to trucks, are out of control. People are holding onto their old cars for longer periods, and think that prices will drop if they wait a little longer to buy something new. 

Deflation looms around automakers 

A lot of popular vehicles like the Ford F-150, Jeep Wrangler, and Ram 1500 have been struggling against declining sales. Rising inflation, high interest rates, and insane prices could be to blame. Automakers could be in trouble.

People are delaying their purchases by a few months in hopes of snagging a better deal. But can you blame them? 

The MSRP of the 2024 Ford Maverick is $23,920, and if I look at options near me, the cheapest model is listed at $32,440. It seems like there is wiggle room, even if Maverick supply is still struggling to meet demand. 

The average price for a new car is estimated at $48,389, which is down from its peak during 2022 and only by 1% as automotive production returns to normal levels. 

But that figure makes buying a new car seem impossible, especially when combined with the higher prices of food and rent. Plus, with interest rates between 6.7 and 11.9%, monthly payments are sky-high. 

The 2024 Jeep Gladiator fording a river
2024 Jeep® Gladiator Rubicon X | Jeep

New and used vehicles have faced declining sales for two years as inventory levels pile up. There are so many Telsa models available that you can see the storage lots from space. 

This could spur a deflation spiral that hurts the automotive industry. As people create less demand to lower prices, they may create a cycle that encourages buyers to put off their purchases to wait for even lower prices. 

Excess pandemic spending, limited demand, revenge spending, and Fed tightening led to high prices but as things returned to normal, demand started to decline. At first, this was helping the automotive market, but now people expect prices to keep going down. 

Stellantis is one automotive brand example that is reducing the price of nearly every Jeep model, including the Jeep Gladiator as sales rapidly decrease. 

People are also looking for vehicles under $40,000 showing that the country is shifting from massive pickup trucks to more economical options. 

The future of the automotive industry is uncertain, but deflation could make SUVs and trucks more affordable in the fall.

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Staff Writer

Allison Barfield

Allison Barfield joined MotorBiscuit in 2020 and covers all things trucks, SUVs, and Jeeps. Having grown up on a farm in Rock Hill, South Carolina, she’s no stranger to the “Best in Class” truck and SUV debates; people in her hometown were always gathering to help work on vehicles together, and deliberation would naturally arise.

Allison graduated from the University of South Carolina with a degree in Media Arts. She has helped bring awareness to issues Women In Trucking face and has promoted Truckers Against Trafficking, an anti-trafficking NGO.

A fan of creatively dark literature, Allison appreciates the works of Shirley Jackson and Emily Dickenson. She lives in a mountainous area of the country and enjoys off-roading and camping. Her dog, Bruce, often joins her in testing trucks and SUVs for our site.