Why Small Is a Four Letter Word In the American Automotive Market

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Recently, AutoPacific released the results of a research study that focused on American buyers and their hesitation to think small when it comes to the automobiles that they drive. Now for a lot of us we are going to say, “duh” without even batting and eye lash. According to AutoPacific, their research shows that small car owners aren’t looking to buy a similar car, but instead looking to trade up to a larger size.

Surprised? Well, you might be in the current climate with hybrids now becoming not only the socially responsible thing to do, but the socially hip purchase as well. So what is the problem with small cars in the eyes of the current consumer? AutoPacific’s research says that it is comfort. The results of their research show that current owners of cars like the Toyota Prius, Honda Fit or Chevrolet Aveo were willing to sacrifice power, cargo room and in some cases comfort and convenience options for the high value price and miles per gallon offered. The interesting thing is that the research also shows that these same consumers are not going to repurchase the same type of vehicle in the future, but are instead looking to trade up to a larger vehicle with more options and luxury.

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My theory on why Small is a four letter word in the American car consumer’s eyes is for the same reason that American’s have high credit card debt, buy houses larger than they need and want more space than probably any other culture in the world—because we can. America is the Promised Land, the place where all your dreams can come true no matter who you are or where you come from. So in that vain we as a culture are hard pressed to accept that owning a small car is the “right’ thing to do. The American consumer hasn’t yet been forced into driving micro cars and econo-boxes because we have over populated the cities and country sides that we inhabit. I mean let’s face it, people in the mainstream wouldn’t chose to be uncomfortable, not be able to carry cargo or passengers and pay a significant car payment.

Bottom line—the small car market will grow when either of these two things happen: 1) We run out of room for our Suburbans, F250s and Minivans 2) The price of gas is above $4 a gallon. Until then, the small car market in the U.S. will look like the mid-size market in the rest of the world because it is what the American consumer is willing to accept.

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About AutoPacific

AutoPacific is a future-oriented automotive marketing research and product-consulting firm. Every year AutoPacific publishes a wide variety of syndicated studies on the automotive industry. The firm, founded in 1986, also conducts extensive proprietary research and consulting for auto manufacturers, distributors, marketers and suppliers worldwide. Company headquarters and its state-of-the-art automotive research facility are in Tustin, California, with an affiliate office in the Detroit area. Additional information can be found on AutoPacific's websites: http://www.autopacific.com and http://news.vehiclevoice.com.