There has been a lot of talk lately about smaller, more efficient cars being the new face of America’s roads.  Yet despite the discussion, lower gas prices are causing used car buyers to revert to bigger vehicles.

Small used cars are taking a hit on value in the market, according to Kelley Blue Book.  Even the once hot-ticked Smart ForTwo is suffering, according to the auto pricing publication.

“Its part of a larger trend that’s been happening all year,” says Alec Gutierrez, a senior market analyst for KBB. “Some of the weakest segments are subcompact, compact and hybrids.”

This trend reflects a couple of important things to consider about the current market: first, it shows that gas prices have been remaining at what consumers view as a reasonable level for a prolonged period of time.  But more importantly, it shows that consumers are not thinking long-term when it comes to their vehicle purchases.  The federal government is mandating smaller, more efficient cars, but for now consumers are staying away from them due to higher costs.

Lower demand for SUVs during 2008’s price spike led to lower prices which are now very enticing to buyers. “We do see big stuff moving,” says Steve Bussjaeger, owner of the Star SuperCenter used car lot in Glendale, Calif. “They got cheap… People are more price conscious than gas (price) conscious.”

To those looking for a compact car, the near future will hold some deals, as demand for larger vehicles is having the inverse effect on small cars.  Value is down 15% since 2008 on small autos.

“The entire industry has suffered this year. … The small-car segment has been affected by this as well,” says Smart USA spokesman Ken Kettenbeil. “However, we know that in time both situations will change. For this, and many other reasons, the trend will transition toward smaller vehicles.”

Photo courtesy of wili hybrid under the Creative Commons License.

In 2009, 84 vehicles earned the title of “top safety pick” from the Insurance Institute for Highway Safety, the largest number for a single year since the award’s inception.  Now the government and the IIHS are making some changes that will make it tougher for vehicles to receive top marks on the test.

The IIHS, a division of the insurance industry that tests for safety standards, will not give the award to any car model year 2010 or later that does not earn a “good” rating on its new roof strength test, designed to test the car’s ability to withstand a rollover.  In addition, the National Highway Traffic Safety Administration will be introducing a more rigorous crash safety testing system for post-2011 models.  The new tests will include a tough new side-impact test, which involves crashing the vehicles into a pole, and a completely new overall safety score.

With the new testing standards being rolled out, fewer cars will earn five stars in the NHTSA’s one-to-five grading system, and will also have a harder time winning the top safety pick award.

The switch has the potential to be confusing for consumers, including fleet managers, as safety ratings begin to change for new cars.  Automakers have done so well at engineering safety features that most cars are above average, so the bar is being raised to separate the extraordinary performers from the pack and demonstrate the difference between models.  Consumers may see lower scores for many vehicles, but they will not suddenly be less safe. For example, the best performer on the new test so far is the Smart Fortwo, which withstands 5.41 times the vehicle’s weight on the roof.  The worst performer was the Chevrolet Aveo, which still held 3.09 times its own weight, more than double the industry standard.

One issue with the new standards is that the two agencies are not instituting their changes in the same way or at the same time, so prospective car buyers will not be sure of how to factor safety ratings into their decisions.  Consumers will have to pay careful attention to the specifics of their vehicle’s ratings until a unified system falls into place.

While the IIHS doesn’t use any one test as the benchmark for their ratings, the new roof-crush test is intended to make a point. Its president, Adrian Lund, said in a statement that the government’s “leisurely phase-in of the new standard means roofs won’t have to get stronger right away, so we plan to continue rating vehicle roof strength for the foreseeable future. We want to reward manufacturers who are ahead of their competition when it comes to providing protection in rollover crashes.”

Photo courtesy of The Pug Father under the Creative Commons License.