When gasoline prices started their upward march in 2008 and with the subsequent recession, car buyers shifted their focus from large vehicles and trucks to smaller cars, beginning a trend that has continued into 2010.

Full-size pickups such as the Ford F-150 and Chevy Silverado still top the sales charts but, overall, when large SUVs, vans and trucks are added together, their market share has dropped almost 10 full points over the past three years. Smaller, more economical SUVs and crossovers have gained considerably during that same time frame.

Buyers are also demonstrating more pedestrian tastes as they favor more common models over fancier ones. Mercedes buyers, for example, tend to be looking at that car maker’s C class line more so than the E or S models. Similarly, more ordinary sporty cars such as Ford’s Mustang and Chevy’s Camaro have seen market share rise as upper end models have lost share.

Buyers don’t seem willing to give up features as they move downward in the product lines. While they may be buying smaller, less extravagant models, they are loading them up with high-end features, some of which weren’t available on any cars just a few years ago. As a result, transaction prices are actually rising.

Will the trend last? Buyers seem to be exhibiting a “won’t be fooled again” mentality here. They know that while gasoline prices have come down from the peaks of 2008, the future holds no guarantee and we could, and probably will, see such prices again, sooner rather than later.

--M.D.

(source: Automotive News)