The inexpensive car has been on life support in America for years. But automakers are reporting third-quarter sales figures this week, and there’s a shock buried in the numbers– a sub-$25,000 car surging up the sales charts.
The all-new 2024 Chevrolet Trax is Chevy’s third-best-selling vehicle.
The Trax, by itself, outsold the Cadillac brand. Americans bought about 38,000 Trax SUVs last quarter and fewer than 36,000 Cadillacs.
The Sub-$25,000 Car Has Been Fading Away
The news is remarkable because every trim level of the Trax costs less than $25,000 (before delivery fees — and many of them cost less even after delivery fees).
The inexpensive car has been disappearing from American roads in recent years. Over the past five years, sales of new vehicles priced below $25,000 have fallen by 78%, KBB analysts found. Automakers have responded by trimming the models from their lineups.
In December 2017, automakers produced 36 models priced at $25,000 or less. Five years later, they built just 10.
Chevrolet, however, made a gamble with the recent redesign of the Trax. The company put significant effort into the least-expensive model in its lineup.
But Chevy Put Some Effort Into One
Mechanically, the new Trax is nothing extraordinary. It has the powertrain of a simple commuter car, with a 1.2-liter turbocharged 3-cylinder engine making 137 horsepower, a 6-speed automatic transmission, and no option for all-wheel drive (AWD).
But it looks fantastic — like a baby Chevy Blazer, with an athletic stance, sophisticated-looking slit headlights, and toned bodywork in a year when most SUV designs go for boxy.
And, while most automakers cheap out on the interiors of their budget models, Chevy gave the Trax a thoroughly modern cabin with a driver’s instrument screen in place of gauges, a high-mounted central touchscreen, and even available contrast-color stitching.
Put simply, it looks more expensive than it is.
It paid off in sales, with the Trax outselling even the larger Traverse.
Might Not Start a Trend
Selling subcompact SUVs is challenging in a climate of high interest rates, when automakers know that only higher-income, better-credit consumers can easily shop for new cars. That’s why they’re pumping out so many high-end trucks and SUVs and special editions of their popular models instead.
In December 2017, automakers offered 61 models for sale with sticker prices of $60,000 or higher. Last December, they offered 90.
But that approach leaves a gaping hole at the bottom of the market, where Americans who just want a reliable commuter under warranty shop. Last quarter, the Trax started to fill it.
