Feel-good" cars like convertibles fall to the bottom of the priority list during an economic downturnNobody needs a convertible. In fact, there are few better illustrations of sheer hedonistic, profligate enjoyment than driving a small car at high speed into the sunset with the top down. It is a supremely selfish, environmentally uncool act. But boy, is it fun.
When the Dow was surging, the dollar was whipping the euro, and gas cost around two bucks a gallon in the U.S., convertibles were selling almost as fast as subprime mortgages. The category—granted, a tiny one—outperformed the rest of the U.S. automotive market in 2004 and 2005 when total U.S. auto sales were still slowly improving. Even in 2006, despite rising gas prices and the beginning of a downturn in U.S. auto sales overall, convertibles managed a slight 0.9% gain in registrations, according to R.L. Polk registration data.
"We joke that a convertible is a midlife crisis car, it's a feel-good emotional car," says Lonnie Miller, director of industry analysis for Polk. "There are all these psychological factors, and if people are uncertain, it falls to the bottom of the priority list when it comes to transportation needs.". That was evident in 2007, when total U.S. light vehicle sales fell for the second year in a row. Sales in 2007 slid 2.5%, to about 16.1 million. Convertible registrations dropped more sharply, by 8.9%, to 257,313.
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