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That's a good analysis. I also believe that manufacturers always have to deal with the competition from the used car market when making small cars in general. Imagine a young buyer who can afford either a low-option Chevy Spark or a 2-3 year old nicely loaded 4-cyl Chevy Malibu. The Malibu is safer, more comfortable, more convenient, better looking (alloy wheels, spoiler, etc. compared to the base Spark's plastic wheel covers), and still gets very good gas mileage. It's hard to see the argument for the Spark in that case. The only things in the Spark's favor are extreme fuel economy, more warranty, and new car smell.
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Daily driver:
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