TrueCar: Compact utility vehicles poised to take top spot
Posted on Wednesday, May 6, 2015 at 7:00:30 AM
Over the years, the most popular vehicle for consumers has shifted. At one time, many buyers leaned toward sedans, while another year brought about the rise of the pickup truck. Now, however, a new vehicle is set to take the crown.
According to TrueCar, that would be the compact utility vehicle, or crossover. Popular options include the Honda CR-V, the Toyota RAV4 and the Ford Escape. The market share for these vehicles has increased to 15.6 percent in early 2015, beating out compact and midsize cars. That figure is expected to increase as the year progresses.
"Car-buyers' shift in preference to utilities from sedans is a clear secular trend we see in TrueCar demand data, transaction price data and sales results," said John Krafcik, president of TrueCar. "Given how well compact utilities meet consumer functionality and fuel-economy needs, smart automakers have leaned into the segment and benefited from significantly higher revenue and margins."
Overall, Edmunds.com reported that April's auto sales are up on a yearly basis, but down slightly month-over-month. Even so, this could be related to the end of the fiscal year, which causes many dealers to offer great auto financing, pricing and other attractive deals.