Posted on 01/11/2021 7:42:43 AM PST by dynachrome
During the infamous year 2020, with all its distortions and shifts, automakers delivered 14.46 million new vehicles in the US, retail and fleet combined, down 15.4% from 2019, the largest year-over-year percentage decline since 2008 (-18%). Topping off years of declines, 2020 took auto sales back to levels first seen in the 1970s.
Every recession has left a deep scar on auto sales. But over the past 20 years, it has taken many years to get back to the prior highs, only to then watch sales plunging again. The last high was in 2016, which had barely eked past the prior high of 2000, in this terribly cyclical business of long-term stagnation interrupted by deep plunges:
(Excerpt) Read more at wolfstreet.com ...
Why buy a car when you’re either working from home, or unemployed?
Cars last longer than they used to. When I was a kid it was considered good if you got 100,000 miles out of a car. People expect and get at least twice that now.
You want to see a drop in sales. Wait until you can only buy a new car as long as its electric. Used cars with internal combustion engines will be at a premium.
Why was there a movement away from sedans to SUVs?
Well, duh. Who’s going to buy a car when they’re locked down and can’t go anywhere?
This is why auto companies are 100% on board with government demands for EV use
Its new technology they control
they will control the supply chain and all parts
EV cars will be high margin, vs. many basic ICE fleet cars, which are no-margin
Government will force you to buy them. For a crony capitalist, what’s better than that?
On the last day of the 2 weeks to flatten the curve, I bought a New Chevy Colorado truck, Sticker was $30K, I gave them $22,500 plus Tax Out the Door, Cash!!
Lot easier to load groceries etc in a SUV.
“Used cars with internal combustion engines will be at a premium.”
Until they ban gasoline sales.
“Used cars with internal combustion engines will be at a premium.”
Not if the Rats have another “Cash For Klunkers”.
Here in Wa state we have a tax in the metro area to fund rapid transit.
They take you on vehicle price and weight. If you buy a $50,000 car, you’re looking at paying $500-700 per year for tabs. That is every year with a declining tax on the value set by...the people taxing you.... It’s so punitive that I’ve decided I’m not buying any new cars anymore, will buy a decent used car instead, fix up to my liking.
Who is going to buy a PU when they are priced higher than some houses? The only people that are buying are doing so on a 7 yr payment plan. Too stupid to realize that with interest the price is triple and the value of the vehicle 7 yrs from now is close to zero. great investment strategy.
“Lot easier to load groceries etc in a SUV.”
And easier to get in and out. I am 6-2 and normal weight 210 lbs and I struggled to get into my nieces 4 door Toyota sedan.
Dealers are not dealing. Everything is MSRP or higher. Inventory is at all time lows too.
With the huge income and FICO score drops this year for a good percentage of Americans, the buy here, pay here car dealerships with 36% to 48% APR interest and remote kill switches are doing a banner year in sales. Usually reselling the same car 2 or 3x a year...
That’s very true about cars lasting much longer these days. With electronic fuel control it is easy and reasonably cheap to keep an old car running well, and by using synthetic oil, it will have good compression well past 200K.
The cars are made much better now, so fewer people need to trade in their perfectly functioning car already paid for and take on new car loan payments.
For example we own a Chevy HHR-2011. It has 60,000 miles on it and is 10 years old. Not a single issue with it so far. Even the original battery works fine. The car starts at the flick of ignition key, runs smooth and quiet (original muffler as well). There is not a speck of rust visible. The only items we replaced so far are tires and wind shield wipers. Why should we trade it in?
And cars are unaffordable.
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