Smaller vehicles are gaining major traction in the market amid the overall elevated costs of new trucks and SUVs.

First things first: A report by the Wall Street Journal reveals that sales of smaller, entry-level cars, such as the Honda Civic and Nissan Sentra have surged 23% or more through November, while sales of larger vehicles have slightly declined.   

  • Sales of midsize SUVs – a popular segment among buyers with families – have fallen 2.3% over 2023, according to the research firm Motor Intelligence. 

  • Large pickup trucks – which have yielded high profits for Detroit automakers – have seen a sales decline of 1.9%, according to the report.   

Between the lines: With the average listing price for a new vehicle being more than $10,000 higher than 5 years ago, the cost for larger SUVs and pickup trucks makes the vehicles less of an option for price conscious buyers than they’ve been in years past.  

Bottom line: For some buyers, larger vehicles – specifically large SUVs and pickups – are the only option, given their specific needs. A compact or midsize car or even a crossover, for that matter, doesn’t provide them with the overall functionality they need from a vehicle. However, for a growing number of other buyers, the idea of purchasing a large SUV or pickup has become a lot less feasible, requiring many to downsize.

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