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Study: Small Car Buyers are Having Buyers Remorse

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Last year when gas prices topped $4.50 a gallon in many parts of the country, car buyers ditched their large SUVs and trucks for smaller cars like the Honda Fit, but now many of those buyers are beginning to regret their purchase.

Gas prices are not quite as high as they were last year, which is part of the explanation for why truck sales have rebounded from last year. Car buyers have all but forgotten how painful it was to see near $5 prices and have moved back into larger vehicles. According to the latest figures subcompact car sales are off 15 percent year to date and compact cars are off 28.5 percent. Popular small cars like the Toyota Yaris and Honda Fit sales are down 41 percent and 8.2 percent respectively.

It get's worse for the small car market, according to a new study by AutoPacific, small car buyers are not happy with their small cars.

"This is buyer's remorse," said George Peterson, president of AutoPacific, "What they said in the study is they want a bigger car. They bought a fuel efficient car, but now they're saying, 'It does what I want, but it doesn't have what I want. It doesn't have the features, the power, the room, and next time I'll opt for a bigger car.' "

AutoPacific found that 30 percent of current small car owners would like more power in their next car, while 25 percent would like more cargo room. When asked what they would likely buy next, 49 percent of the smallest car owners said they would likely buy a compact car, while 35 percent would buy a midsize car.

"Our research indicates that American car buyers are definitely willing to buy a more fuel-efficient car but that they don't want it to be much smaller than what they are driving today," said Peterson. "Tomorrow's successful small car won't be tiny. It will be reasonably sized, have increased fuel economy, adequate performance and a full load of customer features."

So what does all this mean? Well unless gas prices dramatically rise again, many car buyers in the US are going to continue to flock toward larger vehicles since they offer the room, features and power that many buyers are looking for. It will be interesting to see what happens when new small cars like the much anticipated Ford Fiesta hits the US.

Full Story: NewsChief

Related Stories:
US-Spec 2011 Ford Fiesta to Debut at LA Auto Show

Comments (14)

Totenglocke:

Well when they went with things like the Chevy Aveo and the Honda Fit, how could this not be expected?

They are extremely low powered vehicles with very few features. If they bothered putting some options on them (such as an option for a somewhat more powerful engine), things would be different.

Though, it's a common problem with just about every car company - you can only get certain options if you go for the big, bloated, expensive model.

Brian:

Oh I call BS...

I see PLENTY of ass holes driving around in "nice" V6 sedans makes 250ish hp and still pushing like it's a 4 banger...

(Or 60+ year old men driving in Corvettes barely doing the speed limit.)

(You want to talk about some road rage....)

It's called a gas pedal, use the full range and it'll work just fine.

b2man:

@Totenglocke:

You're right. Many people didn't just go for a smaller, more efficiant cars. They panicked and went for "tiny" cars with the only thing on their mind being fuel economy. And that is exactly what they got. I know a few guys who quickly traded in nice trucks for great gas milage but forgot to factor in that their truck was recently paid off. The new payment off set the gas money savings.

Tiny car buyer. Don't have "buyers remourse". Pay your tiny car off (it's probibly half way paid off by now anyway). Use it for communting to work and choose more carefully when buying your second vehicle. There are a lot of excellent choices today and even more just arouond the corner.

Kawi:

We shouldn't be confident gas prices wont rise dramatically again. I heard on the news this morning that several countries are "secretly" holding talks to substitute the dollar as the trade currency for the dollar for either a new currency (euro-like). This may weaken the dollar further if it happens, and you know what's going to happen to the price of oil.

Then those who ditched the small cars will be wishing they bought a Schiwnn...

Stay tuned.

Kawi:

@b2man:

Good point about the paid off vehicles. I wonder how many people actually incurred in debt just to think they were saving money on fuel.

It kinda sounds like cash for clunkers - the clunker was paid off, so why not transfer the burden of the auto manufacturer to the consumers (not to mention the taxpayers!) by entincing them to incur in new debt.

SteelCity1981:

Yet these will be the same people that switch back to their normal car buying habits but when gas prices sky rocket again, they will hit the panic button and feel remorse about letting go of their smaller more fuel efficient cars.

Do some of these people not understand why these cars don’t have a lot of room and a lot of power? It’s to save as much fuel as possible, which is the whole purpose of these types of cars. Like the old saying goes “You have to give a little to get a little.”

Totenglocke:

@SteelCity

"Like the old saying goes “You have to give a little to get a little.”"

Yea, if only wives had heard of that phrase! =D

bob:

The biggest problem here is few are doing any long term thinking. Unless you count thinking of themselves...

Phil:

They will be happy about their purchases here in a couple years. I for one am probably going to get a new Fiesta when they hit the market here next summer. And ill be giving up a truck that has been awesome to me, and i know that i will sacrifice space and power, but thats what it's all about!

Plus the new Fiesta is anything but underpowered! I've heard theyre quite sporty actually and i'm looking forward to the chance to drive one.

JoePDX:

Just put 2k cash into my (91 Si) CRX that I'd been keeping set aside specifically for car repairs/maint. I rebuilt the 1.6 myself, replaced shocks/struts, wheel bearings, some steering stuff, and exaust. Thing runs and drives like new. Has 215k on it and I'm sure I'll get another 215k out of it. Best car and investment I made. It also has suprising room for cargo, tho I do wish it was a 4 seater.

Point is, I get 40mpg highway, it STILL paid off, and handles like a big boys go cart. I could have gone into debt for another small car that would probly be more comfortable, but this was the better choice all around. I'll make that 2k back in a year or two just in the insurance savings alone.

This also gives me a car that I've owned for 16 years to be rock solid reliable. I know it's history. I know it won't leave me anywhere. The last new car I bought left me 100 miles from nowhere with a newborn child in the middle of the desert.

These people that paniced and purchased big ticket cars on a whim without doing research on their own viability to own a new car, the costs and factors involved, deserve it. But hey, I may pick up one of those small cars for a song and a dance. Another wise investment. now if I could only have my 68 camaro back...

Perzy:

Europeans have had high gas prices for many years. That's why manual transmission is so common in Europe I think. Going from auto to manual saves you about 10% fuel on average, in the city even more.
I had most manuals but I really liked the auto I had. Wonderful smooth ride without any hassle. Still, 10-15% more fuel is too much for me.

Totenglocke:

@Perzy

Pop it in neutral on hills or when approaching a stop and you save even more gas. That's what I love about the one road on the way to my friends house - right after I turn on the road I can get up to speed, pop it in neutral and coast a whole mile and a half (staying at the speed limit) until the next turn since it's a series of hills going lower and lower.

longdxcommuter:

I have a 2001 Mitsubishi Mirage (1.8L). I know, not glamourous or sporty, but I have 165K trouble-free miles and have been able to get between 33-38mpg on a consistent basis. Like the previous poster with the '91CRX, it was paid off in 2003, costs next to nothing to maintain it, is reliable, and I know its maintenance history. Also it will be ready for the next upswing in gas prices. Sure, I would love a newer car but will only do so when this one stops running.

As for the article, I think that many who bought the small cars during the last gas crunch are the same who bought full size trucks for recreation. I find it hard to believe with any honesty, that one who purchased an Aveo, Fit, et al are really troubled by the lack of space or power compared to the larger cars they traded in. Conversely,it is not like these people didn't recently notice that their large suv/truck was a gas hog. . There is a tradeoff with power/efficiency/space/weight with every vehicle.

Patrick:

I traded a Rodeo for a Civic in 2006,best move I ever made.

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