The Economic Perspective: “Vehicles are Getting Bigger”

I’m Mary Walden with economist MW, welcoming you to the economic perspective.  Today’s program looks at vehicles getting bigger.  Mike, as I drive on the roads today, I’m struck by the lack of seeing sedans.  It seems like everyone is driving an SUV or a truck.  Why is this?

 

Mike:  Summary Answer

  • Drivers like versatility – comfortable, yet can haul people or cargo
  • Improved performance – SUVs and trucks ride like sedans
  • Improved gas mileage
  • And, importantly, lower gas prices
  • See and inverse relationship between vehicle size/weight and gas prices
  • Even electric vehicles are now going the SUV-truck route
  • I’m MW

 

Mary:  And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.