May 26, 2020
Coronavirus impact on car sales might not be as bad as feared

Coronavirus impact on car sales might not be as bad as feared


A big drop, but softer than expected.


Getty Images

For the most up-to-date news and information about the coronavirus pandemic, visit the WHO website.

The coronavirus pandemic drove car sales off a cliff in March and Q1, and it’s going to do the same in April. But the virus’ impact might not be as bad as once imagined.

CNBC reported Friday on JD Power data that shows car sales during the first part of April weren’t nearly as poor as once forecasted. In full disclosure, sales fell 55% compared to forecasted levels for this month, which is horrific. However, JD Power originally expected a decrease of up to 80%, which would have been a massive contraction.

Car sales ran into two big hurdles as the pandemic unfolded in late February and throughout March. Foremost, state-issued stay-at-home orders kept possible buyers out of new car showrooms and closed numerous sales departments across the US. Secondly, the economic impact of COVID-19 likely pushed thousands of would-be buyers away, whether they’re rethinking a large purchase due to uncertainly or for other reasons.

Yet, car demand is “showing some resilience,” Thomas King, chief product officer at JD Power, told the outlet. If the situation holds steady, new car sales will hover around 600,000 vehicles sold in April, down from a forecasted 1.1 million.

Why has demand stuck around? It may have something to do with the generous deals automakers started to roll out in response to lagging showroom traffic. Numerous automakers continue to advertise 0% APR financing, job loss protection that will pay six months’ worth of car payments and more benefits to soften any looming uncertainty.


Now playing:
Watch this:

Your emails: Five ways car dealers make money



2:16



Source link

3 thoughts on “Coronavirus impact on car sales might not be as bad as feared

  1. Et aut dolor ab molestias necessitatibus. Et repudiandae ipsum et rerum non incidunt. Officia magni debitis magni quam.

    Vel nobis nesciunt et. Dolore dolor quo natus. Error necessitatibus ipsa laborum et maxime ipsam ut quis. Accusamus sint enim culpa quia porro porro.

  2. Sit magnam itaque quos dignissimos nemo enim. Quia dolorum distinctio distinctio possimus. Voluptatibus quae aut sapiente deleniti sed nobis.

    Aliquid maiores aut ab est impedit et. Dolorem dolorum omnis a omnis sint blanditiis omnis. Omnis necessitatibus odio non eos delectus voluptates explicabo. Accusamus blanditiis pariatur voluptatem perspiciatis soluta animi et.

    Et in eveniet accusamus omnis nihil. Et magni rem ducimus.

Leave a Reply

Your email address will not be published. Required fields are marked *