When gas prices spiked above $4 per gallon in the summer of 2008, car
buyers appeared to find their small car zen. Toyota Corollas, Honda
Fits and Civics, Chevrolet Cobalts and Ford Focuses were flying off
dealer shelves at a fevered pace, while truck buying dropped through
the floor. Fast-forward to present day and car buyers are once again
picking bigger vehicles while many of last year's "smart" small car
buyers may be experiencing a bit of buyer's remorse.
A closer look at the current sales charts shows that Americans may not be too keen on small cars after all, as News Chief is reporting that America's compact car market has dropped 15% year over year. Even used small cars are taking a beating, as Kelley Blue Book reportedly
told NC that small car residuals have dropped like a stone while larger
vehicles are becoming increasingly valuable. In August 2008, truck
prices dropped by 17% versus the same point in 2007, but from 2008 to
2009 overall truck sales jumped by 23%.
Perhaps the biggest issue here is that many of the customers who went
small in 2008 are now unhappy with their more economical vehicles.
George Peterson, president of AutoPacific told NC that a recent survey
of 32,000 car buyers showed that customers aren't thrilled with their
new small car, quoting customers as saying "'It does what I want, but
it doesn't have what I want. It doesn't have the features, the power,
the room, and next time I'll opt for a bigger car.'"
The survey showed that 30% of small vehicle buyers would like more
power with their next new car or truck, 25% want more cargo room, and
25% want more technology. 18% of those surveyed would like more safety
and 22% would like a softer ride. Only half of the subcompact buyers
would opt for a compact vehicle with their next purchase, while 35%
want a midsized sedan and 18% want a crossover or SUV.
While the Auto Pacific survey results shows that many car buyers are
looking away from compacts with their next purchase, automakers are
ramping up small car production. New products like the Ford Fiesta
and the Chevrolet Cruze are coming Stateside over the next year or two,
and if the apparent trend away from small cars continues, automakers
will be fighting over a familiarly small group of perspective buyers.
Unless, of course, gas prices once again spike into the stratosphere,
in which case we're likely to repeat this process again.
Read More About Small Cars:
- Small Cars Get Poor Marks In Collision Tests
- Poor Roof Strength in Some Small SUVs
