Growing Pains: Why Bigger Isn’t Always Better

[Counterman]

Where have all the small vehicles gone? In the past decade, the average American car has grown in size by approximately 15%, increasing by a foot in width, and nearly two feet in length. You may have noticed lately that it is more difficult to park at the local shopping center, or especially when surrounded by outsized pickup trucks at home-improvement stores. Parking spaces are, on average, 9×18 feet, leaving precious little room to open doors, much less slip in and out of your car. 

While the shift to ever-larger vehicles is primarily a reflection of American consumer tastes, the disappearance of compact vehicles from dealer lots has a few other hidden causes. For the manufacturer, these larger vehicles with their luxurious and technological features are simply more profitable. While these vehicles initially cost more to produce, the added value of these features allow for a higher margin, when compared to the compact tin-cans we tend to think of as “economy cars.” We don’t expect as much flavor from a fast-food hamburger as we do from a fancy filet at an expensive steakhouse, and we aren’t generally willing to pay top-shelf prices for a basic burger. The traditional “small car” buyer tends to be younger and less affluent, limiting the amount of money they are willing to spend on acquiring such basic transportation, and often more likely to purchased a used car (with more desirable features) at a similar price point.

Compact, fuel-efficient cars were born of a need for economy at a time when fuel prices soared, and emissions regulations restricted manufacturers’ ability to offer the gas-guzzling land yachts which had dominated the highways since the 1950s. For manufacturers to meet Corporate Average Fuel Economy (CAFE) standards, they needed these cheap little cars to offset the pollution and inefficiency inherent in their more popular vehicles. Sold at razor-thin margins (or even at a loss), these were never centers of profit, but they allowed manufacturers a way to boost their average fuel economy numbers without sacrificing sales of those bigger, more well-appointed vehicles which bring in the bigger dollars. 

While the shift to ever-larger vehicles is primarily a reflection of American consumer tastes, the disappearance of compact vehicles from dealer lots has a few other hidden causes.

As hybrid and EV technologies have improved (and been more widely accepted), manufacturers have discovered that meeting updated CAFE standards can be achieved through increasing sales of larger, feature-packed electrified vehicles, rather than giving away econo-boxes at or below cost. Customers still receive the “biggest and the best” as part of their driving experience, while the manufacturer enjoys increased profitability. Rather than selling vehicles at two extreme ends of the spectrum, there has been a shift toward more (mostly larger) vehicles landing in the middle of the “miles-per” range, pleasing buyers, manufacturers and the government regulators. 

From a distance, this seems to be a “win-win” scenario, but there are a few consumer groups left out of this “bigger is better” equation. Smaller vehicles, in more ways than one, are still a better “fit” for many urban commuters. Crowded streets and limited parking make compact vehicles more inviting for city-dwellers. And, for supercommuters (driving 50 or more miles daily), these small vehicles still offer desirable fuel economy. Additionally, the “super-sizing” of the American-market pickup has left many casual truck owners behind. While the car market has moved toward the middle ground in terms of size and efficiency, pickups have become more polarized. Full-sized trucks have grown in both dimensions and pricing in the past few decades, trending toward luxury and comfort and away from utility. Mid-sized trucks have assumed the same overall dimensions as the full-sized trucks of yesteryear, but sacrifice cargo bed length for additional seating and cab comfort.

As regulations and efficiencies allow manufacturers to continue this shift back toward larger, heavier (and more expensive) vehicles across the board, those drivers left behind will be increasingly reliant on the secondary market for their next vehicle. The aftermarket is already well-suited to the reconditioning, upkeep and service of these vehicles, so no matter how big (or small) our customers’ preferences, we’re ready to help!

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