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The latest metric illustrating how hot small cars are in America? 35. That?s the number of days that the analysts at J.D. Power say that ?compact basic? models are sitting on dealer lots, and it?s the shortest turnover of any of firm?s 27 vehicle segments.
According to the Power Information Network?s June-July 2008 findings, compact cars are, on average, leaving showrooms about two weeks faster than compact and midsize crossover vehicles. For comparison?s sake, leading compact crossovers like the Honda CR-V sat on lots for 52 days, and the Ford Edge, 58 days. Nameplate-wide, the segment averaged 60 days.
More and more consumers trading in midsize CUVs are going smaller, too. Whereas a year ago, almost 30 percent of owners traded for another vehicle of the same size, now, only around 20 percent are doing so. More owners within the segment are trading not only into compact CUVs, they?re looking at compact cars and midsize cars as well.
All of which is having a substantial impact on the amount of money coming in the front door for America?s dealers and automakers. The average midsize CUV cost $30,806 over this time period?a whopping $15,904 more than the average tab on a subcompact car ($14,902), and $8,681 more than the $18,347 average transaction price on a compact car.
Looking at these numbers, it?s easy to see that even if a dealer is fortunate enough to have their unit volume skyrocket, making the same sort of margins on these smaller, less expensive vehicles is all but impossible.
+ J.D. Power and Associates  |