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Buying a small car is not a practical solution for this expensive market


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image: Mercedes Streeter

Anyone buying a new crossover, SUV, or pickup truck is likely to be shocked. There are several ways to manage market if you want a fair dealBut one of the weirdest pieces of advice I’ve seen is to advise buyers not to buy the kind of car they really want.

As someone who spends a lot of time looking for ways for people to save money and reduce the stress of the car-buying process, I was impressed by a recent Forbes article titled Let’s Get Small: How too Avoid the has the highest price on New carnd Trucks. Before reading it, I thought, “Oh, maybe there’s some new trick to avoid markings on on-demand cars.” Then I got hit with this:

Downsizing is an obvious way for shoppers to try and avoid overpriced new cars and trucks, but the growing trend of trucks, SUVs and crossovers still dominates auto sales in the US. America.

Clear is a strange word to use here, because it’s definitely not “obvious” for who on the market for one Toyota Highlander (and hard to find inventory situation) to rotate a Camry.

This is like seeing someone shopping for a single-family home in a crowded real estate market and advising them, “Well, obviously if three-house with bedroom with yard is too expensive, you should only buy one bedroom apartment… because it will be cheaper! “

Automotive journalists have argued forever that American buyers don’t need crossover, SUV, or pickup truck, Declare that If buyers really check their driving needs, most people will do just fine with a smaller car. But we forget that logic doesn’t drive our buying decisions. And while Americans in general tend to prefer larger vehicles, in my experience, most people are targetsappropriate ing-size car for their needs. If someone with two or three kids wants a Highlander instead of a Camry, that makes sense to me.

Furthermore, just because small cars are cheaper you don’t “avoid” the very common market premiums – friend’spend less on a lower-cost product.

Jim Henry, author of Forbes magazinestate this very clearly.

For example, according to Kelly Blue Book, the average transaction price for a compact car was $26,211 in June. That’s a year-over-year increase of 9.6% from a year ago, so as a percentage it’s still a big increase. However, it’s a lot less than $48,000.

And even if people choose to zoom out, do so may not make this process any easier – because in most cases, inventory is still bad, as Henry notes:

Consumers considering downsizing should also be aware that smaller, more affordable vehicles can be hard to find.

So even if truck or SUV buyers were targeting a compact car, they can expect to pay about 10% of last year’s price, and they still may not get what they want.

Perhaps Mr. Henry is trying to make the point that small cars are a way to better manage affordability, because average car payments are on the rise. REMOVEut to suggest to someone, “Hey, don’t pay too much for that Honda Pilotpay too much for a Civic instead of” is advice that will fall on deaf ears.

What consumers Candlestick do is build a lot of flexibility in their shopping. Get ready to look brand you have’t consider, because they may be more available. For example, the buyer may have to forget That RAV4 Hybrid and instead Go a Subaru Foresteras i have seen the trend Subaru stores stick to MSRP, and they seem to get cars in a reasonable timeframes.

Buyers who are frustrated when they can’t get their target model can also “Hold Me Back” Reaching out and buying something at a reasonable price will serve a purpose for a period of time until the market changes again.

Tom McParland is a contributing writer for Jalopnik and moderator AutomatchConsults.com. He has no trouble buying or renting a car. Have a car buying question? Send it to [email protected]



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