Automotive Sales After Covid-19: What to Expect
Are you wondering how automotive sales have been affected by COVID-19 and what we can expect as the nation and world recovers? Learn more about this topic here!
Keyword(s): automotive sales
Since the start of the pandemic, every industry on the planet has been impacted, including automotive sales. This is especially true for the United States, which has multiple supply lines that were disrupted by border closures.
By early May, COVID-19 cost car dealers over $2.6 billion in profits. However, the industry began to recover shortly after.
Although global vehicle sales remain fragile, there are signs of improvement as the world opens back up, despite spikes of coronavirus in certain states.
Here are some things to expect moving forward.
Companies Adapt to Change
Despite stay-at-home orders and limited reasons to use a car, let alone buy one, automotive companies have started to bounce back over the summer.
As of August, General Motors reported an improving demand curve, including an exceptional uptick in full-size pickup truck sales. Although sales were still down compared to previous years, they are working to return production to pre-pandemic levels.
Change in Automotive Sales
As the nation pulled out of the pandemic, there was a noticeable growth in online car sales, rental car sales, and even subscription models.
Due to stay-at-home orders and fearful customers, dealerships began to focus on online sales. This change helped to streamline the process and earn sales from home.
Meanwhile, automakers began to utilize car subscription services to help win purchases from customers who have lost purchasing power. Volvo, Ford, Cadillac, and Mercedes-Benz all had services in this area before the pandemic.
Rental car sales are also now offered with subscriptions ranging from 1 to 36 months with various protections to sweeten the deal.
Sales Struggle to Normalize
When the pandemic hit, the U.S.’s supply chains from China were cut off. Now, the world is reopening its borders, and all industries are seeing sales return to normal.
In China, car sales are continuing to improve after their early, dramatic decline. In Europe and the UK, the lifting of lockdown restrictions has stimulated sales demands.
However, the US continues to struggle despite the changes in sales. With spikes of COVID continuing in certain states, sales in the US have continued to drift.
Additionally, the country is still recovering from the months of lockdowns during peak purchasing months.
Buying Used Cars Over New
Early in the pandemic, old cars for sale were at an all-time low, but now they’ve rebounded strongly despite lacking automotive sales overall.
In fact, used car sales have started recovery for online sales and brought furloughed employees back to dealerships. People are getting back on the road with fewer savings, after all.
For anyone selling their car, they’d find their vehicle in high demand as dealerships begin to clear out their used inventory. Early in the pandemic, this would include trucks, which maintained strong sales even in lockdown.
Get Cash for Your Vehicle
As you can see, despite a number of changes and struggles to return automotive sales to their former numbers, old cars for sale are leading the market.
Now is probably the best time to not only buy a used car but to sell the one you have sitting around. If the latter sounds like you, send us a message for a free quote.