Reports and forecasts released by both Edmunds and ALG at the end of May show used car sales taking a modest dip in May. Edmunds called for 3.3 million cars to be sold in May and ALG called it as 3.23 million. Either way, it adds up to a modest 5% dip from last year's numbers.
The small downward turn doesn't have the industry worried, however, since the seasonally adjusted rates remain solid. The first quarter sales for 2017 came out ahead of the Q1 sales for 2013 - 2015. Overall, the Edmunds forecast paints a picture that is as expected for most used car dealers as long as dealers are maximizing used car sales profit.
Everything Old is New Again
If you still think of old VW Rabbits or AMC Gremlins when someone mentions a hatchback, then you're going to be surprised at the news coming out of KBB recently.
Turns out that while the demand for subcompact cars has fallen (to the tuns of 25% no less) the demand for hatchback has risen by 16%. This renewed interest is likely the result of the introduction of a number of newer models that feature hatchbacks. Chevy, Honda, and Toyota all have new models that incorporate the hatchback design and the cars have proven popular with the public.
Hatchbacks offer the best of two worlds
Since hatchbacks offer the best of two worlds - fuel efficiency and versatility - they've become a ray of hope within the small car market. The smaller cars are lighter and more fuel efficient which appeals to people watching their budget as well as those who want to leave a smaller carbon footprint. At the same time, a hatchback offers SUV-like versatility when it comes to cargo storage. The 2017 Chevy Cruze Hatchback boasts a whopping 67% more rear cargo space than the Cruze Sedan, even though the hatchback is 8.4 inches shorter.
At the end of the day, hatchbacks are the SUV for people who don't need the weight or 4x4 ability of an SUV. With versatility, cheaper running costs and a lower sticker price, they might just be the hero the small car market needs.