Pent-up demand from coronavirus lockdowns has brought car and truck buyers back to the market, but once there, they may see little wiggle room on price. With limited inventory, dealers are often taking top dollar for the vehicles they do have. For several weeks, the average industry gross, or the gross profit dealers get on new-vehicle sales, has been climbing rapidly. It stood at $1,028 for the week ending July 12, compared with just $404 a year earlier, according to J.D. Power. And it’s up from $353 for the week ending April 19, when the industry was in the midst of the coronavirus outbreak.
The pandemic could mean big things for our auto tech industry as more companies consolidate
A global survey of more than 120 auto tech leaders by Informa Tech Automotive Group found that 57% expect that COVID-19 will quicken the pace and rate of consolidation within the automotive industry. In addition, with an increased reluctance to use public transportation, more than 85% agree that COVID-19 will have a lasting impact on the usage of shared mobility solutions. This survey was conducted in preparation for the upcoming TU-Automotive Detroit, ADAS & Autonomous Vehicles, WardsAuto Interiors and UX Conference. More than 75% of respondents agree that the acceleration towards urbanization may reverse with the new remote working paradigm, causing new testing and utilization challenges for autonomous vehicles as more people move to suburban and rural areas.
Does the increase in coronavirus cases ultimately means trouble for new vehicle sales.
Some auto dealers worry that spiking coronavirus cases in states like Florida, Texas, Arizona and California could spell fresh trouble for new vehicle sales. Major automakers posted lower U.S. monthly or quarterly new vehicle sales on Wednesday due in large part to weak fleet orders but said consumer demand remained robust despite the ongoing coronavirus pandemic. “This quarter demonstrated the resilience of the U.S. consumer,” said Jeff Kommor, head of U.S. sales at Fiat Chrysler Automobiles NV (FCA) , as the automaker reported a 39% slump in sales for the second quarter. “Retail sales have been rebounding since April as the reopening of the economy, steady gas prices, and access to low interest loans spur people to buy.” But some auto dealers worry that spiking coronavirus cases in states like Florida, Texas, Arizona and California could spell fresh trouble for new vehicle sales.
This is good info to know. Is your personal vehicle on the list?
Small cars:
Mazda 3 (2014 or newer; built after October 2013)
Subaru Impreza (2014 or newer)
Hyundai Elantra GT (2018 or newer)
Kia Forte (2019 or newer)
Kia Niro (2018)
Toyota Corolla hatchback (2019 or newer)
Honda Insight (2019 or newer)
Subaru Crosstrek (2018 or newer)
Toyota Prius Prime (2017 or newer)
Midsize cars:
Subaru Legacy (2013 or newer; built after August 2012)
Subaru Outback (2013 or newer; built after August 2012)
Honda Accord sedan and coupe (2013 or newer)
Volkswagen Jetta (2016-2018)
Mazda 6 (2015 or newer)
Volkswagen Passat (2016-2018)
Toyota Prius v (2015-17)
Lincoln MKZ (2016 or newer)
Volvo S60 (2017-2018)
Nissan Altima (2019 or newer)
Audi A3 (2017, 2020)
BMW 3-series sedan (2017 or newer; built after November 2016)
Large car:
Hyundai Genesis (2016)
Small SUVs:
Mazda CX-5 (2014 or newer; built after October 2013)
Buick Encore (2016 or newer)
Chevrolet Equinox (2016 or newer)
Honda CR-V (2015-2016, 2019 or newer)
Mazda CX-3 (2017 or newer)
Subaru Forester (2016 or newer)
Nissan Rogue (2017 or newer)
Toyota RAV4 (2015 or newer; built after November 2014)
Honda HR-V (2017-2018; built after March 2017)
Hyundai Kona (2018 or newer)
Audi Q3 (2016 or newer)
Midsize SUVs:
GMC Terrain (2014, 2016 or newer)
Kia Sorento (2016 or newer)
Nissan Murano (2015 or newer)
Hyundai Santa Fe Sport (2017-2018)
Hyundai Santa Fe (2017 or newer; built after March 2016)
Mazda CX-9 (2017 or newer; built after November 2016)
Lincoln MKX (2017-2018)
Minivans:
Toyota Sienna (2015 or newer)
Honda Odyssey (2015-2016)
Kia Sedona (2016-17)
Inventory issues are hitting the industry right now. Find out which cars are hardest to get to keep your dealerships abreast.
For many gearheads, summer is the most exciting time of the year: Tops get dropped, vintage rides come out of storage and new models roll onto the lots. This summer is a different story. Virtually every major automotive company was forced to pause production in March, and after reopening some plants shut down a second time due to COVID-19 outbreaks among workers. Click the link above to see the hard-to-get cars.