I’d be curious who has enough savings to go 6 months without income, maybe 15% of the country, maybe. And people with savings didn’t get those savings by buying things they could live without in times of uncertainty
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What people should have and what people do have are very very different things.
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I doubt it’s anywhere near that high
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I have been keeping track of about 15 vehicles since late last year. All on the lots for over 365 days. Both Ford and Chevy. ALL have been sold within the last two weeks. So someone is still buying cars.
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Could just be a mental game. Either people are afraid that it’s a “now or never” moment and inventory will never be the same and they MUST have that car. Or they think now is the best time to get the best deal and are buying up those cars they’ve had their eyes on for months. Little do they realize the chances are much higher that they they’re actually paying more during the pandemic than without one…
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That’s interesting development. I guess pentup demand buying used cars from all those checks.
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Absolutely. $1200 covers the first three payments at least!!!
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Judging by payday industry, that’s as far as the Carvana’s clientele can project anyways.
Plus unemployment supplement of $600/week bro…
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It’s not beans…
I think people underestimate how much of this car sales surge is due to the CARES ACT.
Part of my job involves reviewing tax and earnings documents. I mostly understand why the CARES Act cash assistance had to be structured the way it was but it resulted in a lot of insane outcomes. A good example I saw yesterday was someone with two jobs, first being a teacher and the second being a job at a NBA arena. A NBA team only has about 5-6 home games a month. Guy made about 100 bucks per game or 500-600 a month. When he finally got laid off, his state unemployment check was very small but it entitled him to the 600 buck a WEEK supplement. The law was well intended but for a sizeable minority of people it did result in a big short-term windfall. I like to think little of the CARES Act money is being used for people buying 50k pickup trucks but I know that isn’t the case.
As an aside, there was a controversy when the NBA and NHL shut down about billionaire owners not paying the low wage part-time workers. Turns out it was better for the workers to be laid off and doubly so for the workers in areas that don’t have both a home NHL and NBA team.
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well the opposite is also is happening where businesses are looking to hire ppl and they do not want to work cuz they make more the other way.
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They’ll come back: they always do.
How many people who are benefiting more from CARES now than they did before from meager living are actually in a position now to take one of those jobs and elect not to because their short term financial support is greater?
Something tells me the numbers aren’t actually that high or the data is anecdotal. I don’t know anyone who would turn down long term stability/work just to have the 600 a week for the short term.
There are a lot of people who don’t make $600 a week, and never have, despite working hard.
So X% of work income + $600 a week for staying home is going to be a compelling value proposition for a lot of people.
I’d rather work for $10 than have someone hand me $15 for doing nothing, but that’s a philosophy that was built from inside a very comfortable bubble.
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What’s your PayPal? I feel generous this morning.
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Yes, but for how long will CARES pay out? We are talking about temporary support, not long term social programs. This isn’t like sitting on unemployment for 18 months and just sending out two job applications a week.
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These generally aren’t people who previously filled positions that require a lot of education or skills, and McDonald’s is almost always hiring.
I was an above average student in high school and McDonald’s wouldn’t hire me, but a bank did. I know we look down in certain industries, but it doesn’t mean there’s a guaranteed job out there.
I mean to say is the CARES act funds won’t last forever. I doubt everyone enjoying its benefits this week is of the mind set they don’t need to work anymore.