The Move To Smaller Cars

People have been moving to smaller cars as fuel prices have risen. Would they all return to larger cars, if the fuel price reduced? Not all would. Small cars have always been easy to park, cheaper to buy cost less to run. But they also used to mean cramped, noisy and uncomfortable.
However, things have changed. Small cars are much better than they used to be. They are designed to utilise space cleverly, ride well and modern engines make them easier to drive, even for long distances. For these reasons, not all former larger car owners will return if fuel drops in cost. I personally prefer small cars as most of my motoring is urban. I understand for those that do big country miles will always prefer a bigger car, as will those with families to transport. Most are like me though, urbanites with only two people in the home and for such ones buying a smaller car should be a 'no brainer'.
Unfortunately for manufacturers, there is little money in small cars compared to larger ones. This is because it costs about the same to make and deliver a small car to a customer as it does a large vehicle. The main difference is the extra materials used to make a bigger vehicle and that doesn't add up to very much. So the larger the car to buy, the more profitable it is for the manufacturer. This swing to smaller cars will put pressure on the car maker's profitability. But for consumers, small is good. So if you haven't considered a small car, take one for an extended test drive. You will be surprised how good they are.

The bottom line: Small cars are good for us...but not manufacturers.