Families all over the country have been staying home to help bring an end to the COVID-19 pandemic. Understandably, this means cars were being used less and less. Essential visits to the grocery store are permitted, but many are opting for grocery deliveries to reduce their risk. With fewer and fewer cars on the road, it should come as no surprise that the auto industry has been severely impacted.
For one, the production of new vehicles had been halted, for the most part, not just to protect workers in factories, but also because suppliers were also limiting their workforce. Not to mention, there is very little demand for new vehicles. Car dealerships are, in many cases, closed to customers and the general public unless a car needs to be serviced. That has changed very recently in some areas – now being deemed essential thanks to lobbying by groups like the National Automobile Dealers Association.
The COVID-19 Effect on Sales
A recent study showed that new and used car sales from March 2nd to May 3rd was down by 36%, in comparison to this timeframe in 2019. April sales were off by 42% from previously projected numbers – that is, 445,600 fewer cars were sold in April compared to a sales forecast. COVID-19 has had a detrimental impact on the auto industry.
All of this being said, the country is certainly shifting toward a hopeful outlook. With more and more states reopening, more businesses can continue to reopen and offer their products and services to Americans. In fact, the auto glass industry is one that has been deemed essential from the beginning. Car services were always considered important for families in need of repairs and replacements. Many car dealerships kept their doors open to customers in need of repairs – no matter the make and model of the car.
To Buy or Not to Buy?
Were you in the market for a new vehicle before this pandemic rocked your finances? Because car dealerships are trying to recover from two (or more, in some areas) months of little to no sales, many are developing hard-to-pass-up incentives. For one, deferred financing might be an option for you. That said, there is limited inventory, so do not sit on your decision for too long. You know your family and finances best – if you are in a position to make a car purchase, there is no reason to let the pandemic stop you.
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