As of June 4, the Honda Civic is America’s best-selling vehicle. With news of Libya potentially reducing oil production combined with OPEC predicting prices above $150/barrel by the end of the year, crude oil prices topped a whopping $140 this week. Until this year, pick up trucks dominated American sales for the previous 17 years. $1.14 could afford you a gallon of gas in 1991. Nowadays, $1.14 worth of gas wouldn’t even get you out of the station. The Ford F-150, which has been the reigning sales champion for over a decade, lost sales this year and fell behind the Toyota Camry , Toyota Corolla , and Honda Accord . While the F-150 tops out below 20 miles per gallon (highway), each aforementioned compact vehicle provides its drivers with over 30 miles per gallon on the highway.

While Ford’s sales of its durable, high-performance F-150 trucks have taken a hit since the upswing in crude oil prices, the Chevrolet Aveo, Chevrolet Cobalt , and Pontiac Vibe have since seen increased sales by 44%, 19%, and 72%, respectively, which further evidences the trend in purchasing compact vehicles. With overall better than fuel economy than American cars, Toyota, Honda, Kia and other Asian automakers have outsold the Big Three (GM, Chevrolet, and Ford Motors) collectively this past May – the first time this mark has been achieved.

American drivers are sacrificing space and power by purchasing smaller, more gas-friendly vehicles. Mercedes-Benz has announced plans to release an electric model by 2010, while the Chevrolet Volt will be offered to the public as early as 2009. Much like hybrid vehicles, all-electric vehicles qualify for special government rebates, possibly as high as $7,000. If a $90000+ Tesla sells like hot cakes, imagine hot quickly a $30,000 Toyota electric vehicle would sell for (hypothetically). Though Toyota previously offered an all-electric version of it’s extremely popular small RAV4 sports utility, the RAV4 EV, battery technology at the time of its availability was not as advanced as it is today. Though production and sales of the RAV4-EV were somewhat disappointing, Toyota developed technology used for the current Hybrid Synergy Drive (that powers its Prius, Camry Hybrid, and Highlander Hybrid) during the venture.

Not only do Toyota and Honda offer better fuel economy than the Big Three, they also retain value much better and are distinctly known for impeccable quality and reliability. Within Toyota, the company’s Corolla outsold it’s sister Camry for this first time ever this past May as well. No longer are small cars labeled puny and unassuming. Small is in.

While the BMW and MINI USA sales rose 3.1 percent during May 2007, sales the MINI Cooper rose by over 50% in the same period (6,300+ sold). MINI provides a fuel-efficient and fun to drive affordable (starts under $20k) vehicle that can handle the road like a true warrior. The growing niche market of luxury compact hatchbacks has grown recently to include the popular Volkswagen GTI , and Volvo C30 . The Honda Fit, Toyota Yaris, Chevrolet Aveo, and Scion xA also fill this new, highly-competitive market.

Stare into your wallet, then into the future and realize that your best bet is to purchase a compact car that can get you around town and require fewer fill-ups.