DETROIT (AP) — Had she wanted to, Michelle Chumley could have afforded a pricey new SUV loaded with options. But when it came time to replace her Chevrolet Blazer SUV, for which she’d paid about $40,000 three years ago, Chumley chose something smaller. And less costly. With her purchase of a Chevrolet Trax compact SUV in June, Chumley joined a rising number of buyers who have made vehicles in the below-average $20,000-to-$30,000 range the fastest-growing segment of the nation’s new-auto market. “I just don’t need that big vehicle and to be paying all of that gas money,” said Chumley, a 56-year-old nurse who lives outside Oxford, Ohio, near Cincinnati. Across the industry, auto analysts say, an “affordability shift” is taking root. The trend is being led by people who feel they can no longer afford a new vehicle that would cost them roughly today’s average selling price of more than $47,000 — a jump of more than 20% from the pre-pandemic average.
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Interesting read.
In Fast Company, I wrote about the demise of the Chevy Malibu and the reasons why Detroit is turning its back on the American sedan. Ford, GM, and Stellantis no longer offer a single such model to American car buyers. Automakers claim that consumers simply prefer bigger cars. It’s true that SUVs and pickups now comprise 80%+ of the US car market, but the invisible hand alone didn’t create that outcome. Federal policy incentivizes big cars in myriad ways, and consumers may buy larger models simply to avoid being at a disadvantage on the road (a classic prisoner’s dilemma). Although SUVs and trucks are more profitable than smaller vehicles, Detroit is putting itself in a vulnerable position by refusing to offer any small, affordable models at all. As Alex Roy noted, automakers are now vulnerable to a shift in policy or consumer preferences. And with the cost of car ownership skyrocketing, cash-strapped consumers may swap a second or third vehicle for an e-bike or golf cart. Detroit apparently thinks that the demise of the sedan is to its advantage. Me, I’m not so sure.
Detroit killed the sedan. We may all live to regret it
fastcompany.com
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It will be interesting to see whether this strategic choice pays off or leaves legacy American automakers vulnerable to increasing competition from OEMs based in China, who are already offering far more affordable sedans and SUVs in EMEA and APAC.
In Fast Company, I wrote about the demise of the Chevy Malibu and the reasons why Detroit is turning its back on the American sedan. Ford, GM, and Stellantis no longer offer a single such model to American car buyers. Automakers claim that consumers simply prefer bigger cars. It’s true that SUVs and pickups now comprise 80%+ of the US car market, but the invisible hand alone didn’t create that outcome. Federal policy incentivizes big cars in myriad ways, and consumers may buy larger models simply to avoid being at a disadvantage on the road (a classic prisoner’s dilemma). Although SUVs and trucks are more profitable than smaller vehicles, Detroit is putting itself in a vulnerable position by refusing to offer any small, affordable models at all. As Alex Roy noted, automakers are now vulnerable to a shift in policy or consumer preferences. And with the cost of car ownership skyrocketing, cash-strapped consumers may swap a second or third vehicle for an e-bike or golf cart. Detroit apparently thinks that the demise of the sedan is to its advantage. Me, I’m not so sure.
Detroit killed the sedan. We may all live to regret it
fastcompany.com
-
In Fast Company, I wrote about the demise of the Chevy Malibu and the reasons why Detroit is turning its back on the American sedan. Ford, GM, and Stellantis no longer offer a single such model to American car buyers. Automakers claim that consumers simply prefer bigger cars. It’s true that SUVs and pickups now comprise 80%+ of the US car market, but the invisible hand alone didn’t create that outcome. Federal policy incentivizes big cars in myriad ways, and consumers may buy larger models simply to avoid being at a disadvantage on the road (a classic prisoner’s dilemma). Although SUVs and trucks are more profitable than smaller vehicles, Detroit is putting itself in a vulnerable position by refusing to offer any small, affordable models at all. As Alex Roy noted, automakers are now vulnerable to a shift in policy or consumer preferences. And with the cost of car ownership skyrocketing, cash-strapped consumers may swap a second or third vehicle for an e-bike or golf cart. Detroit apparently thinks that the demise of the sedan is to its advantage. Me, I’m not so sure.
Detroit killed the sedan. We may all live to regret it
fastcompany.com
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As mentioned in the article mid size and compact SUV, as well as trucks and large SUV are cash cows for the OEM’s. Also, the market saturation may be 80% for these vehicle platforms, but, it would be an interesting analysis to see what the results would be if there were more affordable small and midsize American sedans and coupes to choose from. If you look at the current auto loan interest rates and the larger vehicle incentives I believe that the 80% noted of new vehicle sales is derived from higher income families. I’m willing to bet the average family that makes up the majority of population cannot afford these SUV and trucks, unless they are leased and that payment is still a struggle for the average family. What is the used auto market look like and what is the ratio of sedans to the comparble SUV and trucks I wonder.
In Fast Company, I wrote about the demise of the Chevy Malibu and the reasons why Detroit is turning its back on the American sedan. Ford, GM, and Stellantis no longer offer a single such model to American car buyers. Automakers claim that consumers simply prefer bigger cars. It’s true that SUVs and pickups now comprise 80%+ of the US car market, but the invisible hand alone didn’t create that outcome. Federal policy incentivizes big cars in myriad ways, and consumers may buy larger models simply to avoid being at a disadvantage on the road (a classic prisoner’s dilemma). Although SUVs and trucks are more profitable than smaller vehicles, Detroit is putting itself in a vulnerable position by refusing to offer any small, affordable models at all. As Alex Roy noted, automakers are now vulnerable to a shift in policy or consumer preferences. And with the cost of car ownership skyrocketing, cash-strapped consumers may swap a second or third vehicle for an e-bike or golf cart. Detroit apparently thinks that the demise of the sedan is to its advantage. Me, I’m not so sure.
Detroit killed the sedan. We may all live to regret it
fastcompany.com
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A surprising trend in the new car market is the increasing number of people opting for more affordable vehicles. Some have even decided to downsize from their current cars. To learn more about this growing trend? Keep reading. #Affordability #Downsizing #Trending #Motorlease #WhateverItTakes
Lower-priced new cars are gaining popularity, and not just for cash-poor buyers
abcnews.go.com
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Keep an eye out! #UsedCarDealers #AutoDealers #CarDealers - #Chrysler #Dodge #Ram #AlfaRomeo and #Jeep are all about to slash prices to move out 2024 vehicles, according to Autoblog #AutoBlog. What could that do to pre-owned prices? 🧐 🚗 🚘 💵 💰 https://lnkd.in/gxd-pXE4
Jeep and Dodge hit panic mode
autoblog.com
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Cars.com's Monthly Industry Insights Report indicates positive shifts in the automotive market. New car production is normalizing, with increased inventory offering deals for buyers, particularly those seeking vehicles under $30,000. However, the used car market may face shortages due to the slowdown in new car production. EV shoppers have the upper hand, as dealers increase new EV inventory and prices decrease. Room for negotiation exists, especially for less popular models. Used cars experience a pinch, with reduced supply and higher prices, impacting inventory and customer preferences. Discover more here: https://shorturl.at/rsZ04 #AutomotiveMarket #NewCars #UsedCars #CarShortages #EVs
2024 Could Be a Buyer’s Market — if You’re Buying New: Report | Cars.com
cars.com
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Finally there are some deals to be had on new 2024 cars! It’s all about supply and demand. Check out this article form Caredge.com to see their list of the most negotiable vehicles. #carbuying #deals
These 2024 New Cars and Trucks Just Aren’t Selling - That’s Good News For You
https://caredge.com
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The 25 Bestselling Cars, Trucks, and SUVs of 2024 (So Far): After years of turmoil, new-car sales are settling back into normalcy, and some new models snuck onto the list of bestsellers through the first quarter of 2024. #car #cars #awesome
The 25 Bestselling Cars, Trucks, and SUVs of 2024 (So Far)
caranddriver.com
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Affordability Front-and-Center in March U.S. Light-Vehicle Sales Gain Vehicles Sales in March Up 4% YoY, but decrease to 15.5 million SAAR; Deliveries of more affordable vehicles led the 1st-quarter to a 5.1% year-over-year gain Thanks to that boost, total deliveries in March increased year-over-year despite a decline in sales of all pickups, SUVs, vans, midsize cars, and luxury-priced cars https://lnkd.in/gFsMhqct
Vehicles Sales Decrease to 15.5 million SAAR in March; Up 4% YoY
calculatedriskblog.com