Family sedans like the Toyota Camry and Honda Accord are losing ground this year as American families are realizing they would rather ride around in a crossover according to a report by Reuters.
While midsize sedans are still the single largest segment of the U.S. auto industry, but the industry has shrunk this year which could indicate a new trend in motor vehicle sales.
"While the segment is still growing year-over-year, it's nowhere near what it was growing last year as the industry was launching a lot of new midsize cars," Bill Fay, the U.S. head of the Toyota brand, said during a call with reporters to discuss U.S. auto sales in April.
U.S. auto sales are being led by pickup trucks and sport-utility vehicles according to average sales totals for each major auto manufacturer the month of April. Crossovers, which are SUV models built on a car-based platform, have become more appealing however to those looking for a new car.
Crossover vehicle sales have increased this year for a number of reasons which includes: more space, an improving fuel mileage, and easier vehicle entry and exit compared to larger models.
The price gap between midsize sedans and compact crossovers like the Ford Escape, Toyota RAV4 and Honda CR-V has also narrowed recently, making it easier to purchase a crossover model than ever before.
"When there was a further separation between the two, there weren't so much a substitution for each other," he said.
A small crossover costs just $1,300 more than the typical family sedan, according to Kelley Blue Book. Excluding state taxes, this amounts to less than $20 in monthly payments in some cases.
Midsize sedans represented 17 percent of the U.S. auto market during the first quarter of 2013, compared with 17.7 percent during the same period last year, according to LMC Automotive.
"Midsize cars have gotten smaller and more expensive, because of a variety of factors," he said. "People are switching to crossovers, because they satisfy the family needs very well."
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