2nd Annual Sedan Survey Findings

MethodologyIn November 2019, CarGurus surveyed 1,072 automobile owners on their sentiments towards sedans. Among them, 402 currently own a sedan. In December 2018, CarGurus surveyed 1,622 automobile owners as the inaugural survey of this benchmarking study.

Key Takeaways

1. The Future of Sedans: Sedans have historically been the most commonly driven vehicles, yet as demand for SUVs/CUVs continues to grow, that is likely to change soon. Still, there is a fairly large segment of sedan loyalists that plan to stick with the category.

• Sedans remain the most widely owned vehicles today.• 38% of car owners drive a sedan, down from 42% in

2018. • 34% of car owners drive a SUV/CUV, up from 29% in

2018.• For ownership of additional body styles, see detailed

results.

• SUV/CUV’s, however, are positioned to surpass sedans as the most commonly owned vehicles.

• 39% of car owners expect to buy a SUV/CUV for their next vehicle.• 26% of car owners expect to buy a sedan next.• For consideration of additional body styles, see detailed results.

• Still, those that currently own a sedan enjoy their vehicles and many plan to buy another.

• 92% of sedan owners say they like sedans.• Half (50%) of sedan owners expect to buy another sedan for their next car.• A quarter (25%) of sedan owners expect to buy a SUV/ CUV for their next vehicle.

2. Affordability is a Major Factor: The affordability headwind facing the automotive industry was evident when comparing 2019 results to 2018. More consumers care most about getting a low price on a vehicle and chose a sedan because of the favorable price range. Additionally, nearly half of consumers would switch out of the sedan body style if price weren’t a factor in the decision.

• Price is the primary reason why buyers choose a sedan.• 62% of sedan owners said they chose a sedan because the price range was favorable, up from 56% in 2018. • 60% of sedan owners say they care most about getting a low price when choosing a car.

• However, if price were not a factor, only 36% of sedan owners would still choose a sedan.

• If price were not a factor, 40% of sedan owners would choose a SUV/CUV. Key Takeaways

Additional Themes

Additional Takeaways

Consumer Reactions to the End of Sedan Production

• The majority (66%) of drivers disagree with manufacturers’ decisions to stop producing sedans.

• Disapproval is higher among sedan owners: 71% of current sedan owners disagree with manufacturers’ decisions to stop producing sedans.

• Even those that do not own a sedan, or plan to buy one in the future, say the body style deserves a place in today’s American automotive product offering in part because they are such an iconic image of American life

• “I believe every, if not most, [American] families out there have owned one or was passed down one from a family member.” – Consumer quote

• “Sedans have always been part of the American world dream. Replacing them with larger vehicles or smaller vehicles doesn’t make sense.” – Consumer quote

• Consumers are largely aware of the overall shift in the market away from sedans and towards larger vehicles. Many worry about the environmental implications of that shift.

• “I think [manufacturers’ decision to stop producing sedans] pushes people to buy larger and less fuel-efficientcarstheymaynotneedandcontributesto environmental pollution.” – Consumer quote• “There are way too many huge vehicles just carrying one person and no cargo! It’s gross and dangerous...” – Consumer quote

Where Will Sedan Loyalists Go?

• If their current brand stopped producing sedans, consumers hoping to buy another new one are more than twice as likely to consider switching brands over a different body from their current brand.

• Among current sedan owners that would prefer to buy another new sedan, 32% would consider buying a different body style as new from their current brand and 67% would consider a competitor’s brand of new sedan if their current brand stopped producing sedans.

• However, there are some sedan owners that are especially brand loyal and would consider buying their current brand as used, despite the fact that they typically like to buy cars as new.

• Among current sedan owners that would prefer to buy another new sedan, 37% would consider their current brand of sedan as used if their brand stopped producing new sedans.

Additional Insights

• Most sedans on the road today were purchased as used,

rather than new.

• 60% of sedan owners say they originally purchased the

vehicle as used.

• The size and versatility of SUVs/CUVs are drawing sedan

owners to the category.

• Some of the top reasons for switching out of sedans are

the need for (1) something larger (2) more cargo space

and (3) better performance in inclement weather.

• The share of sedan owners saying they want something

more versatile rose from 28% in 2018 to 42% in 2019.

• We asked sedan owners hoping to buy another about their

preferences for American brands since those

manufacturers are behind sedans behing discontinued.

• 34% of sedan owners that hope to buy another new

sedan prefer American brands.

• 56% of sedan owners that hope to buy another new

sedan do not care what country a car brand is from.

Detailed Results

1. What kind of car do you currently own and/or drive? (If

you own more than one car, please select the style that

represents the one you drive most often)

2019 2018

Sedan 38% 42%

SUV/CUV 34% 29%

Pickup Truck 8% 8%

Hatchback 8% 8%

Coupe 5% 7%

Minivan 5% 5%

2. What caused you to choose a sedan? Please select all that

apply.

2019 2018

Price range was favorable 62% 56%

Favorable gas mileage 53% 54%

It feels good to drive 49% 44%

I like the way it looks 48% 42%

It features good performance

(good top speed, acceleration) 36% 33%

I didn’t want anything larger 28% 17%

Was given the car from a

friend/family member 14% 18%

3. What type of vehicle are you most likely to buy for your

next car?

2019 2018

SUV/CUV 39% 38%

Sedan 26% 25%

Pickup Truck 10% 10%

Hatchback 5% 6%

Coupe 3% 4%

Minivan 4% 4%

4. You mentioned that you currently own/drive a sedan, but

will likely get a different kind of car for your next purchase.

For what reason(s) are you considering switching from a

sedan to something different? Please select all that apply.

2019 2018

Size

Need more cargo space 47% 41%

Wanted something larger 49% 35%

Need more space for passengers 35% 34%

Wanted something higher off

the ground 42% 33%

Wanted something easier to get

in and out of 13% 22%

General Sentiment

I want something that better

fitsmylifestyle 40% 38%

I’m making an “upgrade” 36% 29%

Wanted something more versatile 42% 28%

2019 2018

General Sentiment (cont.)

I want to “treat myself” 28% 21%

I want something with a different

aesthetic (looks different) 16% 20%

I dislike my current sedan 6% 8%

Performance

I want something better in

inclement weather 45% 39%

I want something safer 30% 32%

I want something that can handle

rough terrain 35% 31%

I want better gas mileage 22% 30%

Price

I’m able to afford something else

that I want more 43% 44%

Other styles have become cheaper 23% 23%

5. How would you describe your opinions about sedans

overall?

2019 2018

I like them a lot 36% 35%

I somewhat like them 38% 33%

Indifferent 29% 24%

I somewhat dislike them 7% 6%

I dislike them a lot 1% 2%

6. Now, we’d like you to imagine a scenario where price

is not a factor in your decision-making because (in this

hypothetical) all body styles are similarly priced.

In this scenario, what type of vehicle would you prefer most to

buy for your next car?

2019

SUV/CUV 49%

Sedan 19%

Pickup Truck 14%

Coupe 7%

Hatchback 5%

Minivan 4%

7. Several American-based manufacturers, including Ford,

Fiat Chrysler Automobiles, and General Motors, have

announced they will stop producing many of their sedans.

So, going forward, consumers will no longer be able to buy

these sedan models as new.

How much do you agree with manufacturers’ decisions to

discontinue the production of sedans?

2019

Strongly Disagree 44%

Somewhat Disagree 23%

Neither Disagree nor Agree 22%

Somewhat Agree 8%

Strongly Agree 3%

8. How did you acquire the sedan you currently drive?

2019

Purchased 86%

Was Given 14%

9. How did you acquire the sedan you currently drive (among purchasers from question 8)?

2019

Purchased as New 40%

Purchased as Used 60%