Quote:
Originally Posted by chassis
I see upward pressure in new car prices, because the supply is restricted due to factory closures. New car purchases are often driven by necessity. Purchases can be postponed, but if someone has a car they are not willing to invest repair dollars into, they will buy a new vehicle.
As dealer inventory shrinks because of production stoppages, I see prices going up. Transaction volume may shrink, but dealers know how to do one thing very well. Make money.
Prior to the virus, the consumer was very healthy - employed, high savings, low debt. Once the virus haze clears I see a strong economic rebound.
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It's not a necessity. New cars sales were down before the virus.