Here Is Why You Shouldn’t Expect A Bargain On A Pre-Owned Sedan.

There’s been a lot of confusion about why auto makers do not want to make sedans any longer. Sure, the demand has softened a little but the real reason is that SUVs and trucks have a much, much higher profit margin for automakers. Profit margin on a sedan is in the single-digit percentage range.

On the other hand, the profit margin on even a mid-tier SUV is around 20%. It’s even higher for the luxury SUVs people seem to want to buy now.

So, no, it’s not really lack of demand that is causing sedans to disappear — it’s lack of profit margin from the manufacturers’ point of view.