> Why would anyone buy such a product when they can get an SUV instead?

Isn't this just a circular way of admitting that people actually wanted SUVs?

This doesn't explain why the used car market is full of very cheap cars like the Honda Fit for much less than a new SUV.

> [1] Some examples: turbochargers,

Have to disagree. These are a great way to downsize the engine and maintain the same torque output. Yes it's more parts, but modern OEM turbochargers are very reliable. If you can reduce the number of cylinders from 6 to 4 or 3, that's a net win in moving parts, consumables, and repair costs.

> This doesn't explain why the used car market is full of very cheap cars like the Honda Fit for much less than a new SUV.

Is it really? Just to check I looked at carmax and found this kind of price:

2016 Honda Fit LX $16,998* 26K mi

You can get cheaper ones in the $11k range with like 110k+ miles on them, is this really a meaningul price difference?

But they only wanted SUVs because government nerfed sedans.