Americans are switching to smaller cars from SUVs
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Sales of large SUVs plummeted 28% in the first quarter this year, while subcompact sales rose 32%, according to Autodata Corp. Thriftier four-cylinder engines, once despised by Americans for their perceived lack of power, are selling in record numbers.
April sales results to be released on May 1 are likely to show an even more pronounced shift, predicted Jesse Toprak, chief industry analyst for the auto information site Edmunds.com. “That’s simply a function of the dramatic increase in oil prices that we’ve seen in the last few weeks.”
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Now owners of SUVs and other gas guzzlers who’ve seen the price of a fill-up climb sharply are getting a second shock when they try to trade in their behemoths. Used car dealers don’t want the big vehicles on their lots anymore because hardly anyone is buying them. Some won’t take them at any price.
Small cars are now the largest segment of the U.S. auto market, accounting for 18% of new car sales. Last year, U.S. consumers bought a record 2.8 million of them, and with sales up 4% in the first quarter this year, the record almost surely will be shattered.
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Menicocci, a resident of the upscale Miami suburb of Palmetto Bay, recently placed his 2003 Chevrolet Tahoe with leather seats and 39,000 miles for sale on Craigslist for $16,000 — roughly $2,000 less than what his research determined was the Kelley Blue Book value.
He bought a 2003 Kia Spectra for $5,000 because he was tired of paying so much for gas with his heavy Tahoe. “I was wasting $30 a day compared to $10 a day,” he said.
“Everybody is like, `What is that? Is that the maid’s car?”‘ said Menicocci, who sells marble and granite for a living. “But I don’t care. At this point, I’m way past looks and appearances.”
What amazes me is how stupid many Americans can be. The price of gas goes up, “Oh no, I need a car with better mileage!” Then the price goes down (when we all know it will eventually go back up) and they start buying bigger cars again.