A 2017 Hyundai Accent hatchback sits in a row of other used, late-model sedans at a dealership in Centennial, Colo., on June 26, 2018.David Zalubowski/The Associated Press
Say goodbye to small, fuel-efficient cheap cars like the Honda Fit, the Hyundai Accent, the Chevy Sonic and the Toyota Yaris – just to name a few vehicles on the chopping block in 2020. This year marks the death of the small car. And itʼs heartbreaking.
There’s no denying that consumer appetite for crossovers and SUVs is growing stronger by the day. Look at third-quarter auto sales in Canada; according to DesRosiers Automotive Consultants, sales of “light trucks,” a category that includes crossovers, SUVs, vans and pickups, rose 1.8 per cent, while sales of passenger cars fell 21.4 per cent, compared with the third quarter of 2019.
“Passenger-car body-style sales are really grinding downward,” according to Robert Karwel, senior manager of the Power Information Network at J.D. Power & Associates. “Mid-size cars as a segment have been eroding for some time now, but itʼs really accelerated in compact cars, which was the No. 1 segment in Canada just three years ago.”
What’s driving the shift? Consumer demand and “the industry having the financial instruments available to make it happen,” Karwel says.
The price of vehicles is climbing, he explains, driven by people choosing more expensive SUVs over passenger cars. Long-term financing of 84 months (or seven years) is now common, and those long terms, combined with low interest rates “have created conditions for people to buy more vehicle, while maintaining a monthly payment which fits their budget,” he says.
But itʼs risky to take on such debt, especially during an era of economic turmoil, job losses and reduced incomes. Canadians need more affordable vehicle options. Now is not the time for manufacturers to drop small, cheap cars from their lineups.
There’s still a market for compact cars, with new buyers entering the market. With young millennials wishing to avoid public transit and shared rides during the pandemic, a small city car is the best solution. These vehicles are easy to drive, cheap to buy and maintain, great on gas and they make excellent city and long-distance-commuter cars.
After the 2008 recession, Fiat re-entered the North American market and manufacturers introduced compact options such as the Chevrolet Cruze and Ford Fiesta. These stylish, practical, fuel-efficient and affordable cars helped cash-strapped consumers during a difficult economic time. But cars like the Cruze, Fiat 500 and Fiesta are all gone now. In fact, Ford Motor Co. has just about quit the passenger-car business altogether to focus on SUVs, trucks and electric vehicles. The only car spared in its North American portfolio is the Mustang, its halo sports car. It’s a shame. This time around, there are fewer options for consumers.
When manufacturers dump small cars, consumers ultimately pay the price. They’ll have to pay more for pricier crossovers and SUVs. Case in point, the Hyundai Accent. It was an age-old staple of the Hyundai family and Canada’s best-selling subcompact car for 10 years straight, from 2009 to 2018. First released in 1994, more than 462,494 Accents have been sold in Canada to June, 2020.
But now, the Accent will be replaced with all-new nameplates, such as the Hyundai Venue and Hyundai Kona, which compete in the hot crossover segment. Don’t get me wrong – they’re nice. But those vehicles come at a cost for consumers. A 2020 Hyundai Venue, for example, starts at $17,099; the 2021 model at $17,599. A 2020 Kona starts at $21,249; the 2021 Kona at $21,299. And if you want to go for the Kona all-electric, then you’ll have to cough up a whopping $44,999 to go green.
Compare that to a 2020 Hyundai Accent five-door hatchback, which starts at only $14,949. I could buy three Accents for the price of one Kona EV.
It’s impossible to find an EV or crossover vehicle for under $15,000. But you could buy a gas-sipping small car like the Nissan Micra. It was one of the cheapest cars in Canada, starting at only $10,488. But it, too, was discontinued in 2019.
Canadians deserve cheaper alternatives, like other markets in the world. The Honda Fit will disappear in North America this year, but it will continue to be sold around the globe under the nameplate Honda Jazz. So where does that leave consumers in Canada? In the dust. With fewer options that cost more.
Unfortunately, there’s no turning back. We’ve lost some great vehicles this year. RIP small cars of 2020. You’ll always hold a special place in my heart.
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