Gas Is Cheap, and SUVs Are Hot Again

Gas prices are still dropping and are roughly a dollar less than they were a year ago. Seeing "$2" as you pass your local station sure alleviates worry about pain at the pump, and new car shoppers are setting their sights on SUVs.

Related: August's Fastest- and Slowest-Selling Cars

Compact SUVs like the Honda CR-V have been popular for years and saw sales increase 3.7 percent in August from a year prior according to sales data analyzed by Cars.com. Large SUVs like Ford's Explorer were up 5.8 percent. But the biggest increase was in the midsize SUV space. Think Jeep Grand Cherokee.

Not so long ago this was the segment most automakers were shying away from, focusing instead on either compacts or larger SUVs that could fit three rows for families leaving the minivan segment.

But recently car companies double downed on these roomy two-row rides with redesigns like the Ford Edge (up 35.6 percent), Kia Sorento (up 9.7 percent) and Nissan Murano (up 3.7 percent).

Cars.com photo by Evan Sears

All three get better mileage than their previous generations but they're not exactly fuel efficient with their front-wheel-drive versions getting 21, 23 and 24 mpg combined respectively. To be fair, that's not much worse than full-size sedans from the same companies. The Ford Taurus, Kia Cadenza and Nissan Maxima get 23, 22 and 25 mpg respectively.

But they're likely drawing sales from their midsize sedan siblings. That go-to segment of the past for car shoppers saw sales drop 8.4 percent in August. The Ford Fusion, Kia Optima and Nissan Altima get significantly better mileage at 26, 27 and 31 mpg combined respectively.

And if that doesn't prove folks aren't as concerned about fuel efficiency, hybrids and alternative-fuel vehicles like the Chevrolet Volt and Ford C-Max Energi saw sales plummet 29.5 percent in August. Inexpensive and relatively fuel-efficient subcompacts like the Toyota Yaris also dropped 18.3 percent, while compact cars like the Ford Focus dropped 9.5 percent.

2015 Ford Edge Cars.com photo by Aaron Bragman

But the essentially new subcompact SUV segment is booming and up 95.6 percent. However, that number is skewed since most entrants like the Jeep Renegade and Honda HR-V weren't on sale last August.

The only SUV segment in decline is the full-size, truck-based variant down 6.8 percent. But a sales dip is somewhat expected for the biggest sellers in that group — the Chevy Tahoe and Suburban, and GMC Yukon — which are a year or two removed from their own major redesigns. Ford's recently revamped Expedition — yes, it still lives — saw sales spike 30 percent in August.

With most analysts predicting gas dropping to $2 nationally — or lower — by the end of the year, we predict that sales of SUVs will only continue to go in the opposite direction.