East Texas auto dealer says truck purchases driving up car payments

East Texas auto dealer says truck purchases driving up car payments
Published: Sep. 20, 2023 at 4:31 PM CDT|Updated: Sep. 20, 2023 at 6:54 PM CDT
Email This Link
Share on Pinterest
Share on LinkedIn

NACOGDOCHES, Texas (KTRE) - The next time you purchase a car or truck, you might be paying a bit extra.

With the popularity of trucks in East Texas, Mike Perry Motor Company owner Hunter Perry says it’s no surprise some Texans are forking over close to $100,000 for large trucks.

“All sorts of people buy trucks. We have ladies come in here and buy trucks and put a bed cover on them and use them just like a car. We have people that buy four wheel drive trucks that don’t ever use the four-wheel drive,” said Perry. “In this East Texas area trucks are probably, I would guess, 70 or 80 percent of our sales.”

Edmunds.com found that the average monthly car payment reached a new record high of $733 in the second quarter of the year, up $3 from the first quarter.

With large trucks being the third largest vehicle sales segment in the U.S., Perry says car buyers suffer.

“Truck prices have gone up, which makes the overall cost of vehicles go up. It increases everything as an average, and then we had the interest rate hikes and now we’re looking at a strike,” said Perry.

Currently United Auto Workers are on strike against General Motors, Stellantis, and Ford.

Perry says because of production slowdowns, the strike’s repercussions could trickle down to consumers.

“Hopefully they’ll get it settled pretty quick, because if it goes into two or three weeks or longer it’s going to sure affect dealers’ inventories, which raises prices just like it did back when the part shortage affected inventory,” said Perry.

Auto site Edmunds.com advises consumers to consider sales price, trade-in values, and financing terms when looking to buy or pay cash and avoid financing.