Why So Many Great Deals On Small Cars?

Want a new car for less than $200 a month? The lower cost of gas has led to a surge in demand for SUVs and trucks. With more buyers going for larger vehicles, this may be the best time to buy one of the many unsold small and mid-size cars on dealer lots.

According to Ward's Automotive, in the 12 months ending April 30, small-car sales fell more than 6%. During that same time, truck and SUV sales topped 10%. So far in 2016, about 54% of U.S. vehicle sales have been trucks and SUVs. Just two years ago, cars topped the market at 51%.

The drop in gas prices is one of the main factors but not the only one. Newer trucks and SUVs are smaller, lighter and more fuel efficient than in the past. Nationally, there has also been a documented increase in consumer confidence so folks are willing to spend more.

The rush to buy trucks and SUVs has lead to good deals on cars, especially smaller models. According to the Associated Press, supplies of small cars on dealer lots grew to the highest level in seven years in April. Automakers are resorting to discounts and sweetened lease deals to move their inventory. This might be the right time to get a new car with a monthly payment below $200.

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