A new study says a big reason for your decision to go car shopping is whether it’s a smaller car or a larger car, and it’s likely you’re not alone.
“I would say the biggest issue that we’re seeing with a lot of people, particularly younger folks, is that they’re not satisfied with what they’re buying,” said Michael Schurmann, CEO of the National Association of Home Builders, which represents about 300,000 homebuilders.
Schurmann says there’s a growing sentiment that larger cars are too expensive and smaller cars are better for the environment.
“We know from other research that a lot more than people are buying cars because they think it’s too expensive,” he said.
Schutmann says he’s seeing this backlash because older people are starting to see the value of small cars as well as their own comfort levels.
“They’re saying, ‘I’m just not as concerned about what’s going to get in the way of me driving a larger vehicle,’ and that’s where I think it will start to become more important than ever,” he told CNNMoney.
Schmick’s car rental company, Moxie Car Rental, has been a regular customer of car-rental companies in recent years.
“If it’s an older vehicle, we’ll probably give it a try.
If it’s not, we probably won’t,” said Moxia CEO David Koehler.
Koehler says he has seen an uptick in older people who want to have their own cars, but he has noticed a big difference with older people, who tend to be more confident with their driving abilities.
“People of the middle age category tend to have a little bit more confidence in their driving skills,” he explained.
Koch’s own company, Aptiva, recently added a small car rental service.
“It’s a little less expensive than we normally rent a car for,” said Kevin Koch, Aaptiva’s chief marketing officer.
“So we do have an opportunity to offer a little more comfort to older people.”
The survey also found that younger people, millennials, have less patience than older people for a car they don’t really need.
“The older age group has a tendency to drive a car more than they need it to be driven, and that drives younger people to get a little smaller, which drives older people to have less confidence in a car,” said Schurman.
In some ways, the car rental industry is a little different than it was 20 years ago.
“When I was younger, you had to drive cars to work.
You had to have the gas tank, the brake pads, the steering wheel, the windows open, and then you had a seat belt,” said Koehl.
Now, a lot, if not most, people drive on their own.
“Nowadays, if you want to go out for dinner with friends, you can have a meal in your car, which is very different from what we used to do,” he added.
Read more about car rentals, car rentals:What car is left?
A new survey suggests a lot is changing in the car-buying world.
The survey, from the National Automobile Dealers Association, surveyed 1,000 consumers, and the results showed the car market is on the verge of a comeback.
The NADA study showed the median price of a new car was up 10% in the last three years, while the average price for a second-hand car was down 13%.
The survey shows that sales of smaller cars fell, as did those for larger cars.
The median price for an old-fashioned, older-model car went down, but older models saw a big increase.
In fact, the average cost of an older model went up 11% in three years compared to three years ago, while older models got an 8% jump.
The average price of an old car went up 15% in one year compared to the same time last year.
“Our data shows that the median value of an existing car has decreased and that the average value has gone up,” said NADA President and CEO David Darnell.
“There is no doubt that the new, larger cars, particularly for people of color, the more upscale, more premium models are becoming more affordable, and so we are seeing a shift toward smaller cars,” he continued.
The report also showed a big rise in sales of newer cars.
While the average prices for a new-car sales were up a whopping 20% in just three years to $43,879, that was in line with what the average American household earned last year, according to the latest figures from the U.S. Census Bureau.
“This is a great time for our industry,” said Koch.
“As people get more comfortable driving smaller cars, they’re choosing smaller cars as a result of the affordability and convenience that they find in them.”The NAD