Since the coronavirus pandemic began grinding the global economy to a halt, we have been keeping a close eye on the auto market. The auto market was mired in recession prior to the virus and therefore has been disproportionately affected by the slowdown in the global economy.
In January, prior to the virus shutdowns, auto companies set the tone for the year, starting 2019 just as miserably as 2018 ended, with major double digit plunges in sales from manufacturers like Nissan and Daimler. Since then, things have only worsened, with major markets like China and the U.S. seeing sales fall off a cliff as consumers have been forced to stay home.
We have recently noted that U.S. auto manufacturers are teeing up sizeable incentives to get buyers back into showrooms. Europe is following suit, with Volkswagen starting a sales initiative to revive demand, including improved leasing and financing terms.
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DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
I don't believe that at all. I've been looking to buy a new car or used. Whichever one is the better deal. But there isn't much difference in the price. All still way over priced.
ReplyDeleteThis article does not represent what is happening now in the used car market. Being a used car dealer for the last 24 years I can tell you that there is no glut of new cars. Ask any local new car dealership employee about vehicle inventory and they will tell you that dealers are suffering due to a lack of inventory. Many new car assembly plants closed during the early days of the pandemic. The lack of inventory coupled with the general population still apprehensive about our current economic state has slowed sales tremendously. The less new cars sold creates a shortage of trade ins. The basic economic rule of supply and demand takes over and increases the value of wholesale used car prices. We have noticed a sharp increase in the amount paid for our supply, consequently raising the price of what we sell.
ReplyDeleteIf shopping..start with the most unimaginable lowest low ball offer u can possibly think of ! ..start there ! Because as we all know ..it still their World ! ..
ReplyDelete7:36-I agree,but if your financial information suggests you are a person of means you may have encountered a double standard.I hear a lot of people who are barely getting by talking about what a great deal they got.I'm like yourself.It's like they see me coming.
ReplyDeleteI have the means. I'm old. This may just be my last vehicle. I takecare of my vehicle. It's 15yo and runs perfect. But I've always wanted a Ram 2500 4x4. The best deal I've seen is Enterprise rental. You can get a 2019/20 with 25,000 Miles for around 33,000 dollars. Compared to 50,000 or more for a New.
DeleteThey see me coming alright. But they have been seeing me leave as well. They don't want to make a deal. It's business as usual with them.
DeletePart of the problem with used cars is all the government mandated nonsense like:
ReplyDeleteRear View Cameras
Autonomous Braking
Antilock Brakes
Blind Spot Detection
Rear Parking Assist
Not to mention:
Bluetooth
Apple Car Play
Remote Keyless Entry
All this stuff costs money and when the warranty runs out it costs $$$$$$ to fix.
They can give all the incentives they want but until the Dealers give the buyers these incentives they still will not buy.
ReplyDeleteDealers have the option for years to keep all the incentives given or act like a good guy and give the buyers a partial incentives.
That is why the Dealers grow and make outlandish profits.
Keep your new cars that only Dealers can work on due to the computer programs not offered to the ones of us that want to work on our own vehicles, from the car industry, instead of paying exurbanite prices for unneeded parts and labor from the Dealership crooks.
Hertz just dropped 1000's of rentals onto the used car market. friend of mine picked up a great deal, got the car out of B-more. No haggle price. Remaining factory warranty.
ReplyDelete