Summary
- Models like the Toyota Camry and Honda Civic saw significant sales growth in 2024, highlighting a resurgence.
- Sedans offer lower sticker prices, insurance premiums, and maintenance costs compared to SUVs and trucks.
- Sedans are lighter, more aerodynamic, and often come with hybrid or electric options, making them more cost-effective to run.
- Sedans have lower rollover risks and provide better security for valuables with enclosed trunks.
- Sedans offer engaging handling, a lower driving position, and a broader availability of manual transmissions than SUVs.
Although each year SUVs take a bigger piece of the pie of car sales, sedans are poised to make a comeback in 2025. There are several reasons for this. For starters, sedans had a good 2024 regarding sales, and based on data from previous years, the trend will most likely continue. For instance, the Toyota Camry was the 8th best-selling vehicle in the U.S. in 2024, with 309,876 units sold compared to 290,650 from 2023.
That was not a small feat in a market dominated by SUVs and pickup trucks. Toyota’s four-banger outperformed popular models like the Hyundai Tucson and Toyota Tacoma. Additionally, sedans still offer excellent value. On average, sedans have lower sticker prices than most SUVs or pickups and, in many cases, better fuel economy. And if you are a driving enthusiast, sedans also have one ace up their sleeve that the no soccer mom vehicle offers.
Sedans Still Offer Unbeatable Value
In a market where the average new car has ballooned to nearly $50,000, affordability is becoming a rare commodity. That’s where sedans shine. While SUVs and trucks clog showroom floors, sedans remain one of the few segments that still offer a realistic solution for the price-sensitive buyer. Models like the Honda Civic and Toyota Corolla, and the aforementioned Toyota Camry, serve as great examples, as they have long provided reliability and quality without breaking the bank.
What sets sedans apart is their starting prices, which are typically more affordable. In a search for a new vehicle, very often a sedan can cost thousands less than its equivalent SUV, thus being more attractive to first-time buyers or those trading in older vehicles without stretching their budgets too far. The demand for cars with a more palatable price range is already visible.
In 2024, Camry sales climbed 6.61% compared to 2023, while the Honda Civic made the top 10 best-selling vehicles in the U.S. list. In 2022 the Honda Civic had an all-time low year in sales with 133,932 units sold, partly due to supply issues. However, in 2023 it hit the 200,000 mark, and last year it soared to 242,000 units sold. That’s an 80% sales bump in two years.
But it’s not all about the sticker price alone; generally speaking, sedans cost less than SUVs due to their smaller size, simpler components, and greater accessibility during repairs. This simplicity translates to lower labor costs, especially when it comes to tires and brakes. Sedans also tend to have a lower cost per mile (CPM) compared to SUVs, primarily because tire replacements and brake repairs for SUVs are more expensive.
As interest rates climb and household budgets grow tighter, financial incentives like those aren’t easily overlooked. To many buyers, sedans mean a return to practicality—a no-nonsense method of car buying that best aligns with today’s economic realities.
Better Gas Mileage and Safety
One important area where sedans shine especially for budget-conscious buyers is running costs. First, the average sedan offers better gas mileage than the average SUV. Here’s why:
- Lighter weight: Sedans are usually lighter than SUVs, requiring less energy to move.
- Aerodynamics: Sedans often have a more aerodynamic shape, which reduces wind resistance and improves fuel efficiency.
- Smaller engines: Sedans tend to have smaller engines than many SUVs, which consume less fuel
With rising fuel costs, the efficiency of the sedan is becoming more appealing. Their strong fuel economy, coupled with the availability of hybrid and electric models, is attracting environmentally conscious drivers seeking a balance of performance and style. For instance, the Toyota Camry Hybrid has an EPA-estimated 52 mpg combined, compared to 39 mpg from one of the best-selling SUVs, the Toyota RAV4.
If superior fuel efficiency isn’t enough to convince you sedans are a smart choice, perhaps safety will. Sedans often excel in rollover safety, countering the common perception that SUVs are inherently safer due to their size. While both vehicle types generally perform well in crash tests, SUVs’ higher center of gravity makes them more prone to rollovers during sudden maneuvers.
For instance, the BMW 3 Series has a rollover risk of 9.2% compared to 17.2% for its SUV counterpart the BMW X3. Larger SUVs, such as the Chevrolet Suburban, exhibit even greater rollover risks, emphasizing the need to factor in rollover safety when assessing a vehicle’s overall safety. In the security department, unlike SUVs with their open cargo areas, sedans provide a concealed space for valuables within the trunk. This reduces the visibility of belongings to passersby, minimizing the risk of theft.
Save the Manuals!
When it comes to transmissions, although the average driver prioritizes comfort over driving dynamics, making automatics more sought after than manuals, many of us still love a good old manual gearbox. As of January 2025, the availability of new SUVs and pickup trucks with manual transmissions in the U.S. has become increasingly limited. Only a handful of models offer a manual gearbox like the Wrangler and Gladiator from Jeep, the Ford Bronco, and the Toyota Tacoma.
However, with sedans, you get the Acura Integra, VW Jetta, Honda Civic, Hyundai Elantra, Kia Forte, Mazda 3, and Nissan Versa, and sporty four-door saloons like the Subaru WRX, BMW M3, and Cadillac CT4-V CT5-V Blackwing, plus several hatchbacks and coupes too. Not only are manual cars more common than manual SUVs or pickups, but they’re also sexier. Admittedly subjective, sedans often display a more streamlined and gracious profile compared to the bulkier appearance of many SUVs. Not to mention, sedans are more enjoyable and engaging to drive.
Despite being taller and offering more interior space, SUVs and crossovers often feel top-heavy, giving the impression of sitting on rather than within the vehicle. In contrast, sedans offer a lower driving position, a more intimate cabin, and controls that are typically easier to reach, making them a favorite among driving enthusiasts. And even though crossovers have gotten a lot better over the years in terms of handling, sedans still generally have a more fun-to-drive demeanor.
Sedans Will Stick Around for a While
While sedans are making a humble comeback, it’s very unlikely they will claim back the throne of the most popular vehicles. Both SUVs and pickup trucks will continue to dominate the sales charts around the globe. However, thanks to their value proposition, sedans are still a compelling choice, especially for budget- and environmentally conscious buyers and even driving enthusiasts. We don’t know how much time sedans have left in the auto industry, but sales figures from recent years show that the sedan isn’t going anywhere anytime soon.