New cars - How does 2018 auto sales will impact 2019 US market behavior

A significant amount of manufactures had a negative year compared to last year.

https://www.marklines.com/en/statistics/flash_sales/salesfig_usa_2018

In addition, there are signs for economic slowdown (worldwide).

How the auto market is going to/should react in 2019?
(for instance, Orange Coast Nissan is trying also to rent new Nissan models)

I was going to start a forum about this… Seems to be a slowdown in Auto sales which I believe has to deal of course a possible economic slowdown that’s coming soon. Auto sales have climbed over the last decade, however last year was the first time sales fell since the financial crisis of 2008-2009 when auto sales plummeted. Yearly auto sales have been approximately 17 million and with that number coming back down could manufacturers start to increase incentives to get more cars on the road? My question is during the financial crisis how were lease deals? I didn’t lease around that time, but if anyone here remembers what lease deals there were it would be interesting to know. Were they offering greater incentives and sales to jump start sales and get their bottom line back to stronger profitability? Anyone who could share some stories please do.

There was significant pullback. The domestics virtually stopped leasing altogether and provided bigger finance incentives instead.

If the companies are smart, they will reign in production levels making incentive spending per vehicle less and not more.

Will you still find a deal…sure. But you may have to settle for something you really don’t want to drive too just to get that deal. If you’re picky like me, it could be trouble.

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Totally different than today. GM and FCA were in Chapt 11 and Ford was staring down the barrel of it

They still need to move volume if sales decline. With UAW contracts they have no choice to produce less. In 2008/9, they used the reality or threat of bankruptcy to convince the UAW to agree to cut volume.

I agree that production volume will have to be adjusted and so does their revenue projection.

Another approach auto companies can use is removing some new features (e.g. auto locks on 4 doors, heated/went seats and etc.’) and decrease the price per unit.

BTW, during the last decade crisis, lease options were amazing. Unicorns was easy to find :slight_smile:

In general, leasing is great for auto companies - they are getting some revenue upon leasing and after 3 or 2 years they are re-selling the car and getting additional revenue.

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