Drivers Are Downsizing Their Vehicles As Cost of Living Spikes

These days, the cost of living is on everybody’s mind. Prices are high every direction you look. And now it’s fair to say that the continual increase in expenses will urge several homeowners and car owners to do away with superfluous costs in the coming months.

In fact, it’s already starting to happen.

Not only are drivers parting ways with luxury or big-tanked engines, consumer behavior is beginning to shift as a result. In comparison to years ago when fancy new SUVs were the latest thing, now buyers are more interested in finding used models that boost low-fuel efficiency. Even better, battery powered vehicles.

According to Morning Consult, research data from early March revealed that “gas mileage ranks third in importance for consumers considering their next vehicle purchase.” Odds are that ranking has increased drastically since spring as upward inflation has taken a toll on consumer spending.

In such a way, consumers are feeling the pinch in the long run.

The only way to get around the present high cost of living is to make savvy budget cuts. Ones that will impact their day to day and future savings down the road. And so, downsizing happens to be one of the easiest options to ensure quality of life is not sacrificed.

Below we’ll take a look at the recent changes in consumer buying power and why the trend of downsizing will keep on for years to come.

Reasons why drivers are downsizing their vehicles

For most U.S. families, young professionals and commuters, a car is a necessity of a life, not a luxury. Most drivers need their vehicle to get from Point A to Point B each and every day, especially since most Americans live in areas with subpar transportation.

Without an efficient bus system or metro in close reach, it’d be hard to get anywhere on time without breaking a sweat. Despite the rise in electric bikes and alternative means of transportation, cars are still an indisputable part of our everyday lives.

So, if downsizing vehicles is the means to navigating overhead expenses, most drivers would agree, “Why not?”.

Recent trends due to the cost of living

The changes in consumer behavior have already started becoming more apparent in recent months. Although people are looking for cheaper alternatives, there’s something to be said for the way drivers are approaching driving nowadays.

For example, consumers are reducing their monthly car payments by switching to cheaper lease deals. In addition, they’ll opt for budget-friendly used models that cost less than brand new. Instead of investing in a top-of-the-line Audi, we’re noticing a wide variety of buyers settle for safe and reliable low-cost sedans by choice.

This buying behavior has become one of the easiest ways for drivers to cut monthly expenses without losing the modern conveniences of driving a new or nearly new vehicle. Though you may not have the luxury of having every item on your checklist, the savings are lucrative.

On the bright side, included in most lease contracts is annual maintenance that helps ease the financial strain on consumer wallets. Due to supply chain disruption, the act of repairing vehicles has increased as well. Therefore, many drivers see this aspect as a bonus.

With a used vehicle, drivers can expect lower monthly payments and less money down in order to start driving. On top of that, drivers are finding more and more used models on the market that have advanced safety.

Final thoughts on the cost of living

What we’re seeing today is a whole new era of consumer driving. As manufacturers find ways to reduce EV price tags, Americans are doing their part to make monthly expenses less taxing on yearly incomes. After all, the high cost of living is here to stay for a bit.

Although “sticking it out” would be ideal in order to keep your favorite car, it’s not realistic at this time. At most, drivers are finding that upward inflation has impacted a record number of households this summer. Which means, financial adjusts need to be made.

Downsizing your vehicle is surely not a bad start.