U.S. auto consumers, squeezed by high prices, including to gas up their cars, are gravitating to smaller models. 

Cox Automotive analysts noted the shift in June new-vehicle sales results, which though healthy for the month were weighted toward more affordable options. 

“One of the biggest shifts in today’s market is that consumers are no longer waiting for uncertainty to disappear,” said Cox Executive Analyst Erin Keating. “After several years of inflation, high interest rates, and policy volatility, many buyers have come to view uncertainty as the new normal. If they need a vehicle, they’re moving forward and adjusting their budget and vehicle choice accordingly.” 

Deliveries of subcompact SUVs and small and medium pickups rose sharply, helping keep the average transaction price flat in line with May and a year earlier at $49,758, according to Kelley Blue Book figures. 

Total sales were up about 8% year-over-year for a seasonally adjusted annual rate of 16.5 million, its highest level so far this year, Cox reported. 

Subcompact SUV sales jumped 23% from a year earlier, and small- and medium-size truck sales were up 12%, while full-size pickup deliveries rose just about 3%. 

Incentives were also flat for the month at 7% of the ATP, in line with the average that’s prevailed for a little more than a year and “suggesting real discipline by automakers focused on bottom-line profitability,” said, Cox, which noted bigger incentives for pricey full-size pickups and luxury models.  

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