It might not make sense to trade your gas guzzler in for a more fuel-efficient car, but that doesn’t seem to be stopping people.
Sub-compact and compact car sales are spiking this year, according to J.D. Power and Associates. It seems that both segments are growing, but the smaller sibling is winning out among American consumers, probably because of rising fuel prices.
The average gallon of gas across the U.S. sells for $3.80 today and is expected to climb in the coming months, as is common in during the warmer seasons. That seems to be driving consumer preferences toward cars like the Scion iQ, Chevrolet Sonic and Fiat 500 which might have seemed unthinkable a couple of years ago.
In fact, both segments are outpacing growth in the rest of the industry, which saw an 11.5 percent sales gain over last year. Sub-compact deliveries grew by 37.7 percent, while compacts enjoyed a 13.3 percent increase.
What’s more, 23.6 percent of sub-compact owners traded in their fuel efficient car or crossover for another sub-compact. More models are also being traded in for smaller cars at dealerships this year compared to last.
So it seems that the small cars some people looked at with disdain a few years ago are actually gaining popularity. Maybe Fiat boss Sergio Marchionne will be able to announce good news for his brand’s U.S. sales for a change.
[Source: J. D. Power and Associates]