Smaller car sales surge as large pickup demand falls

Consumers are increasingly choosing smaller cars this year. Sales of compact cars and SUVs are up by 18% and 12%, respectively, compared to the 4% drop in full-size pickup trucks, according to Cox Automotive data.

Why?
Industry experts point out that high car prices and increased borrowing rates are steering consumers towards smaller vehicles or used cars. Consumers are now paying about $11,000 more than they did in 2019 for a new car.

Compact SUVs are desirable since most are priced below $30,000, which means lower interest rates, compared to big pickup trucks, which cost over $60,000 on average.

Small cars are also better equipped and roomier than before, appealing to budget-conscious buyers.

Driving the trend is the crossover SUV Chevrolet Trax, whose sales increased by 230% in the first half of this year compared to 2023. It starts at $21,495.

Other popular subcompact SUVs include the Mazda CX-30 and Honda HR-V. Compact cars like the Nissan Sentra, Honda Civic and Toyota Corolla also see strong sales.

EVs want a piece of the cake too. Ford and Tesla are planning to release entry-level EVs under $30,000.