Why Small Cars are Becoming So Popular

In Europe, tiny cars are nothing new. Americans abroad have often been shocked at the tiny Smart Cars and Fiats that line the cobblestone streets. These cars make sense in Europe, since the ancient streets are too small to navigate with large vehicles.

Surprisingly, the trend has been taking America by storm as of late. While Smart Cars aren't necessarily popular yet, smaller sedans are outperforming larger SUV's in the marketplace. Dealerships selling brands like Ford, known mainly for their pickup truck, are being overtaken by Hyundai dealerships and other small-car manufacturers. Hyundai cars are certainly known for their compact design and efficiency.

Why are small cars all the rage? The most obvious answer is the rise in gas prices. It costs more than $100 to fill the tank in a pickup, but less than $50 to do the same in a sedan. Small cars also fit with the "green" trend in the US. Environmental responsibility is cool, and small cars cause less pollution. Finally, small cars are less expensive to begin with. A truck might cost over $30K, while you can find Hyundai deals for less than $10K.

In the United States, bigger is usually better. However, the trend in small cars is showing consumers that small isn't always bad on the road, and sedans are quickly gaining popularity.

Categories: Finance