Stubbornly high car prices and elevated interest rates are persuading more Americans that when it comes to their next car purchase, bigger isn’t always better.
U.S. car buyers have for years gravitated to larger, roomier vehicles, a shift that had become so pronounced last decade that some automakers killed off their small-car and sedan models because of slumping sales.
But with the average monthly payment for a new car soaring to new heights in recent years, some car shoppers are moving back in the other direction.
Sales of some smaller, entry-level models, such as the Honda Civic and Nissan Sentra, have taken off this year, rising 23% or more through November, according to research firm Motor Intelligence.
Meanwhile, large pickup truck sales, long a highly profitable corner of the market for the Detroit car companies, slid 1.9%, data from car-shopping website Edmunds shows. Sales of midsize SUVs, the type of vehicle typically favored by families, have also declined, falling 2.3% over 2023.