(MT Newswires) -- Recent sales by Toyota and General Motors show a renewed interest in compact and economical cars. Faced with average new car prices of $47,000, American consumers are turning to more affordable vehicles.
Models such as the Honda Civic, Honda CR-V, Toyota Corolla and GM's new Chevrolet Trax, priced at around $20,000, are enjoying considerable commercial success. The Chevrolet Trax, in particular, has seen a six-fold increase in sales compared with the previous year, while sales of large SUVs have fallen.
With the normalisation of post-pandemic car production and the replenishment of stocks, manufacturers began to offer purchase incentives again. Although these incentives were virtually non-existent during the pandemic, they are gradually increasing as a percentage of the selling price. Manufacturers are being disciplined in their promotional strategy so as not to exceed reasonable limits.
These incentives are aimed in particular at reducing financing costs, a pertinent measure at a time when high interest rates are affecting consumer budgets. In addition, following price cuts on electric vehicles by Tesla and Ford, leasing offers for these vehicles have become particularly attractive, offering affordable monthly payments.
