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.