Claudia Assis of MarketWatch reports that ‘there’s interest, there’s volume — hard to say if there’s profitability.’ Asis writes:
U.S. drivers long have favored a “more is more” mentality when it comes to choosing their next set of wheels — but high interest rates and rising prices for new vehicles are leading some to take a look at smaller cars.
Sales of smaller vehicles have risen faster than sales of large and midsize SUVs and pickup trucks in recent months, signaling that downsizing is increasingly in favor for those wanting to buy a new car.
Some first-time buyers and families, in particular, are looking for such entry-level vehicles, said Ivan Drury, an analyst with Edmunds.com. “They are gravitating toward cheaper options,” he said. […]
The availability of vehicles priced between $30,000 and $49,000 dropped by 15% year over year, reflecting the scarcity of one- to three-year-old vehicles typically found in that price range, the company said.
Used vehicles priced under $20,000 are now averaging 93,000 odometer miles as of July, up 33% in the last five years, Cars.com added.
Read more here.
