REPORT: Consumers increasingly shying away from small cars; owners unhappy

[divideandconquer]

REPORT: Consumers increasingly shying away from small cars; owners unhappy


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.'"

<http://www.autoblog.com/>
feed://www.autoblog.com/bloggers/chris-shunk/rss.xml

What's a carmaker to do?

[Horse with no Name]

1. I don't think this is true at all

CFC was a huge success--people were tripping over each other to trade in for more economical models.
The economy is the biggest culprit in car sales of ANY kind being down.
Seems to me there is an agenda being served here (not blaming you--just the source)

[Duckhunter935]

2. Love my Smart nt

[CAG]

3. They'll like them a whole lot better when gas is back up to 4 bucks a gallon...

[Critters2]

4. Well, I'm happy with my 7 yo Ford Focus. That's all I know. nt

[safeinOhio]

5. "It doesn't have the features, the power, the room, and next time I'll opt for a bigger car.'"

There are lots of small luxury cars out.

[divideandconquer]

8. I'm just saying it's hard for these car makers to figure out what to make

I just can't see the price of gas staying this low, i don't think it will be peak oil just around the bend but the collapse of the dollar that will make gas very high, but when?

BTW check out the link, that new Chevy Cruze looks pretty good and they'll be a luxurious Buick version both powered by small efficient but powerful turbo four cylinders

[Manifestor_of_Light]

9. I refuse to drive an underpowered car.

I have a four door japanese car (small) with a V6 engine. I paid more for the V6 so I would have acceleration to get out of the way of the maniacs that weave and slice on the freeway.

[timeforpeace]

6. Dang! This changing human behavior shit is hard!

[provis99]

7. Americans want their Canyoneros back.

Can ya name the truck with four wheel drive,
Smells like a steak and seats thirty five.
Canyonero...
Canyonero...

When it goes real slow with the hammer down,
Its the country fried truck endorsed by a clown.
Canyonero...
Canyonero...

Twelve yards long two lanes wide,
Sixty five tons of American pride.
Canyonero...
Canyonero...

Top of the line in utility sports,
Unexplained fires are a matter for the courts.
Canyonero...
Canyonero...

She blinds everybody with her super high beems,
She's a squirrel squishin' deer smackin' drivin' machine.
Canyonero...
Canyonero...
Yahh...yahh canyonero
Whoa Canyonero.

[tularetom]

10. Do these idiots think gas isn't going up to $4 again?

it's gonna go a lot higher than that. Manipulated shortages, coinkydinkal refinery fires, publicizing of peak oil, all are used by the oil bidness to periodically jack the price of a gallon off gas upwards. Sure it goes back down again, but never all the way down. So the new base price is created and the process begins again.

It's really disheartening to see it confirmed that the American consumer is indeed a blithering douchebag.

[Strelnikov_]

11. 6000 SUX - An American Tradition

[Nay]

22. Another Robocop fan, I see! Dang, that was a good movie.

[Trajan]

12. This is BS ...

LOTS of small EXCELLENT cars on the market ...

[divideandconquer]

13. USA TODAY: Small used cars aren't big sellers as gas stays cheap

Small used cars aren't big sellers as gas stays cheap

By Chris Woodyard, USA TODAY
Despite all the talk about small cars, many used car buyers are thinking big again.
Used small cars are taking the biggest hits on value in the resale market, Kelley Blue Book says. Even the once-hot, tiny Smart ForTwo is suffering, KBB says.
------------------------------------------------------------------
<http://www.usatoday.com/money/autos/2009-09-18-small-used-cars_N.htm>

[nc4bo]

27. Ayup. Cheap gas derails plans to become less dependent on oil.

Average family of 4 definitely needs its Hummers, Escalades and Toyada Tundras.

Whenever the price of gas skyrockets again, the moaning and groaning will once again be of EPIC proportions.

[frazzled]

14. If true, could Americans' addiction to bigger cars be related to ....

obesity?

Just asking. What is it that these bigger cars have besides ... big honkin' tushie holders?

[IrishBuckeye]

15. Room. I hate driving in a small car.

Esp. when I'm going to be in the car with multiple people for a few hours.

[frazzled]

20. We rented a Toyota Corolla when we were out in Seattle a few weeks ago

and we drove it to the Olympic Coast, a 3 1/2 hour or so drive. I was surprised at how comfortable it was. We had three people in the car, for a total of 7 hours driving time, and it was just fine.

I dispute this comfort thing. I think it's a bit psychological.

[Tesha]

28. More and higher-tech options.

I drive an Audi A8. (Don't scoff: it was bought as a "lease turnback"
for surprisingly-little money and its aluminum body allows it to get
surprisingly good mileage.)

95% of the time, I'd be just as happy in an A3, but you can't even
buy as options for that car all the cool features that the A8 has as
standard features. This is a shame, but it probably makes good
business sense for Audi; most of the people who are willing to
spend the money on all those features still expect them to be
enclosed in a big car.

Perhaps that will change over the years?

Tesha

[jakefrep]

30. That would be nice...

...it's a damn shame that all of the economy cars sold here are built down to a price.

[TreasonousBastard]

16. Hasn't it always been this way? I remember other gas price spikes and...

econoboxes selling for a while until the hysteria over high gas prices went away.

Of course, there is a vocal minority here and elsewhere who deny this can happen-- everyone must see the logic in a small car and the truck sales figures aren't real at all.

Sorry, guys. US car companies have always made exactly what US buyers wanted-- big, powerful iron. They were so good at it that the Japanese and Germans started making SUVs, too, and the Japanese started making full size pickups. And everybody was having a ball with their upscale and luxury marques. Even with the econoboxes, you'll notice evey year the Civic types got an inch bigger and thye kept coming out with smaller models for the few who wanted small. And those models disappeared on a regular basis when they didn't catch on.

Personally, I've always liked smaller cars that are good on gas, easier to maneuver and park, and are cheaper to buy and maintain. But that's just me, and I gotta say I know very few people who share the concept.

[Rex]

17. Total bullshit, but thank you for playing.

Go ahead and go out and buy the 50k gas guzzler, while unethical immoral assholes decide to have another fake gas shortage so you can lose your 401k all over again. :eyes:

[Romulox]

18. "But they MADE me want an SUV!"

They even got to Al Gore!!!!1!!1!!!

[EndersDame]

19. Just another sign that the Earth is fucked

Who cares if we destroy the planet faster just as long as I have power everything and room for my fat ass :eyes:

Disclaimer I understand that a car for alot of people is needed (I have to drive my mom to her doc in another county) but really couldnt we just be a tad bit responsible?

[flvegan]

21. I love my Mazdaspeed 3.

Features? Check.

Power? Oh yeah, check.

Room? Checkity check check.

Economy? Avg 22 mpg city, driving like I'm on fire.

Is it a bigger car? No. It's the same as a standard Mazda 3 hatch, just made better.

The Cobalt SS did the same. But they're killing it. The HHR SS...also dead. That abomination Dodge Caliber SSXTRVwhatever. Gone.

Make a car in the middle, kids. One that's cheaper but still has the quality, comfort, power and passion and people will buy it like mad, if you promote it properly and make an interior doesn't depress people. Make something special, and they will come for it in droves.

[Romulox]

23. Kick. Looks like this is an "incovenient truth" for the unreccers.

Here's another:



:hi:

[fascisthunter]

24. bull....

I am noticing less SUVs and large trucks and more smaller/compact vehicles at least where I live.

[kestrel91316]

25. If this is true, then when I am ready to replace my car with a small used

car, the market will be glutted with them and it will be a buyer's market. Fine with me.

[Winterblues]

26. Americans are known throughout the world for their intelligence.

:shrug:

[marmar]

29. And the whole cycle of big-ass vehicle idiocy begins again.....

F**k it. Mass transit or bust !!!!

[depakid]

31. Not for long...

[MorningGlow]

32. Holes in this story (not seeing it at the link--?)

Nine years ago I bought a Jeep Wrangler specifically because I had a long commute from my house out in the country into the city and I was sick and tired of driving "in a hole" on the highway, surrounded by giant SUVs, pickups, and minivans. I couldn't see a damned thing in my Saturn, so I wanted to be higher up. Worked like a charm. But now I'm not seeing so many monster vehicles (aside from my village, where drivin' a hee-yuge pickup truck makes ya a MAY-UN). While there are a lot more smaller cars on the road now, I'm also seeing lots of crossover vehicles.

And that brings up another point; I don't like the subliminal implication that it's either/or for consumers--a teensy econobox or a Hummer. If some people bought a Honda Fit and don't like it, there are plenty of other midsize vehicles--no need to get a gas guzzler, is there?

I love my Jeep, but it's getting on in years and gets crappy mileage. My next vehicle will be a Mini or (if they ever get here) a Fiat 500 Abarth. Worse comes to worst, if somebody can convince me that the Suzuki SX4 is decent, I'll buy that, because it has all-wheel drive, which is a plus during our severe winters.

[JVS]

33. Small cars are traditionally the province of low earners. It's been a tough 2 years for this group.

[krispos42]

34. The reason cars and trucks got bigger over the years....

...was that you have to sacrifice a lot of creature comforts for a relatively small increase in fuel economy.

Even a "small" car weighs in the 3,000 pound range... my Subaru Imprezea sportwagon AWD clocks in at about 3,200 and consistantly gets 28-29mpg on the highway (27 acording to the EPA).

A 10% increase in curb weight and a 10% increase in frontal area leads to a significant increase in things like legroom and storage, and people were willing to lose an MPG or two for the extra room. A big honkin' Crown Victoria gets 24 highway miles, and an AWD Ford Taurus (one of the new ones) gets 25mpg, according to the EPA.

So for a 10% drop in fuel economy, a consumer could go from a compact all-wheel-drive wagon with 173 horsepower to a full-size AWD sedan with 263 horsepower.

:shrug:


And back in the 90's, your choice for family tranportation was a mid-sized sedan that got maybe 22 miles per gallon, a minivan that got maybe 20 mpg, or a larger, 4-wheel-drive SUV that got 18mpg. For a lot of people, that tradeoff made sense. A couple hundred or so dollars a year in gas extra for something that could go in the snow, haul a trailer, and rated high in physical comfort.


Compare:

1995 Honda Accord: 20/27 city/highway (AT, 4-cyl, FWD)
1995 Ford Windstar: 16/23 city/highway (AT, 6-cyl, FWD)
1995 Dodge Caravan: 15/20 city/highway (AT, 6-cyl, 4WD)
1995 Ford Explorer: 14/18 city/highway (AT, 6-cyl, 4WD)

You've got a growing family and live in the snow belt. Which one do you buy?


And I knew several people that had an SUV or minivan for the stay-at-home mother and a subcompact sedan for the commuting father. The mom only drove a few miles a day in the "gas-guzzling" family hauler and the father burned only a couple of gallons of gas a day in "gas-sipping" commuter car. Total fuel consumption by the entire family was probably less than 4 gallons a day.