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If you can afford only one vehicle, it has to accomplish as many missions as possible. So you see people commuting in SUVs.
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That's a pretty big if, since observation and statistics both bear out that the overwhelming majority of households are multi-vehicle, even more than 2 vehicles/household.
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it has to be overpowered enough to maneuver easily in normal traffic.
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That's funny, I'd wager just as many VW old Beetle, diesel Rabbit, and Metro owners successfully operated their vehicles in traffic and survived as anyone else.
Maybe people just need to "adjust the nut behind the house buying decision" and decide it's not feasible anymore to have such long commutes.