People Want Small Cars, But Automakers Stopped Selling Them

Consumers have a short memory when it comes to gas prices. When they go down, buyers rush out to trade their small, economical hatchback for a large, three-row SUV. That’s what happened in 2017 when gas prices dropped and small cars were traded into dealers on large cars and trucks. Now, oil prices are rising and Automotive News reports that people want their small cars back.

But due to a lack of supply used prices are currently rising on small cars. Some analysts believe a seasonal uptick is responsible for the increased demand, while others point to industry decisions by major automakers to kill off many of their small models. Due to the increased demean, dealerships are struggling to stock affordable used cars.

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