In its semiannual Market Outlook Report, released last month, Dave Cantin Group noted the American public seemed to have reached “peak truck,” with consumer preference for pickups and SUV beginning to wane slightly.

Last week, the automotive M&A advisory firm said evidence is mounting that “peak truck” is an economic trend to watch in 2025 as consumers struggle with vehicle affordability.

DCG said the trend is tied more to consumers’ growing struggle to afford a new vehicle than to the vehicles themselves. While the average purchase price for cars now hovers around $37,400, it’s up to more than $43,600 for SUVs and CUVs, and $54,600 for pickups.

“This isn’t just an automotive story. It’s an American consumer story,” DCG president and CEO Dave Cantin said in a news release. “It’s not a declining interest in trucks. We’re not saying that segment is going away. But the consumer survey we conducted as part of our Market Outlook Report finds that the American consumer is feeling the cost pressure of rising prices.

“In response, we see a decline in the number of people who believe their next purchase will be a truck or SUV and an equivalent increase in the number who intend to purchase a car. Add to that the report that inflation hit a seven-month high in January, and we’re seeing even more evidence that ‘peak truck’ is a real trend to watch.”

Cantin said there are number of indicators showing the market is trending away from larger vehicles and back toward cars.

Data from the DCG report, conducted by Kaiser Associates, found consumer intent to purchase cars rose to 29% in 2024, up 3%, while intent to buy trucks dropped by 2%. SUVs remain the most popular body type, but consumer intent to buy them fell 1% year-over-year.

According to the report, there was a “pronounced shift” among older consumers, with the 35-54 and 75-plus age groups increasingly favoring sedans. Tighter budgets — especially among buyers earning between $75,000 and $100,000 — are driving a move from SUVs to more affordable car options, DCG said.

The move toward less expensive options is part of a broader affordability issues caused in part by prolonged high interest rates pushing consumers to examine their monthly expenses. DCG said the current average vehicle age of 12.6 years overall — an all-time high — and 14 years among passenger cars, according to S&P Global Mobility, illustrates vehicle owners’ reluctance to invest in high-priced new vehicles.

In addition, the inflationary spike in January is an indication consumers continue to face cost pressures, the company said.

DCG also noted automakers are responding to the market signals by shipping vehicles with fewer bells and whistles to dealers, an approach designed to help reduce costs for buyers. And value-driven brands like Hyundai and Kia are getting increased interest as consumers search for quality vehicles that align with their tighter budgets.

“The automotive industry has always been an early economic barometer, and what we’re seeing now — that Americans might have hit max capacity for the largest, most expensive vehicles, at least for now — is a clear indicator of the cost-of-living pressures facing American consumers and the overall economy,” DCG chief business and strategy officer Brian Gordon said. “This is a trend that will continue to play out and has the potential to fundamentally reshape manufacturer strategies and what ends up on dealer lots. It’s a trend we see continuing to define the market into 2025.”