You can reasonablly say car service is essential. There are tens of millions of essential workers from doctors to grocery store check out clerks driving to work. They need to be able to get their cars repaired/oil changed. Ideally many fewer service centers would be open but the state and local governments can’t fairly make that choice so all have the option to be open.
I am interested about Maryland auto sales. They are allowed but have to all be done basically online or on phone since the dealerships have to follow social distancing rules (6 feet away). A few other states have similar rules. Now, when you email for a quote the dealership can’t ask “when are you free to come in.” Gonna be a big change of operating procedure for most dealerships.
Oh, I agree about car sales arguably being essential. People have to be able to buy a car if they are also essential and need to get to work. Just doesn’t seem like all states are taking that stance. Maybe I’m wrong. Maybe all are open, but restricted.
I think it will be very brand and model specific as far as deals going forward.
I agree with the argument that anything desirable will become pricier on both the dealer and incentive side.
I do think some manufactures will have insane incentives at least in the short term to move sitting inventory. I’m mainly looking at you FCA. Specifically, I think Gladiator and Ram incentives will get better next month.
THIS IS ALL JUST MY OPINION AND HAS NO BASIS IN FACTS. Please be kind.
I’m not calling you anything. We have several buzzards circling and I’m characterizing anyone who celebrates painting their shoes red with the blood of carcasses. I don’t know your motives or anyone else’s’. Character is how we act when nobody is watching.
My sister’s lease happens to be up this month and we’re navigating that too. But I can’t imagine making a discretionary purchase like that right now. I’ve never come through a panic (and I’ve survived a few) where I thought anything that resembled “I sure didn’t spend enough money in 2008. I wish I’d bought a more expensive car in 2003. I can’t believe I didn’t take better advantage of more struggling business and people in 1999…” and I like a deal and I don’t like to overpay.
For a couple weeks it’s been open season and I have seen some deals that put Q4 EOY to shame but I believe it’s starting to sink in that April will be lean. Real Lean.
Any dealer that’s a) already met volume or b) has not and still has no hope of hitting volume will be shutting the tap and going for gross profit. No sense giving away soon to be limited product for free or at a loss when it can make a profit later on. Shop around: you might just find a dealer that needs 1-10 more deals to get some extra lovin’
Going forward: Manufacturers may put forth more incentives to keep things going or they may stay put.
Shameless plug:
BMW for example has extended tax credits to X5’s up to $75,000 in Texas. Good time to get into one if you feel it’s prudent to do so.
Well I’m paying $255/mo. now for a 2015 Chevrolet Spark EV with 7.45% APR - I would be kinda foolish to keep paying when I can lease a Bolt EV for a cheaper monthly payment.
Not to refinance that loan at a much lower interest rate - at any time your credit score will save you >1% (there’s 3-4% you could cut). But you do you.
Unfortunately I have more than 100% LTV - I got caught in a cycle of negative equity with building on my past 3 vehicles, however I finally am going to squash that.
I do see a general trend in this exchange that we saw in 2008: 0% finance deals used to bury negative equity, only to kick an even bigger can down the road.
The longer gas prices are low, the more people buy and lease large gas guzzlers. And then when gas prices skyrocket they try to trade out of their mistake.
majority of money in dealers comes from SERVICE not sales. with 0% fed lending and relaxed lending criteria, that will help more people get into loans. especially since most people will be showing missed payments and see their credit take a hit over the next couple months.
you can’t have a busy service drive without cars on the road. i think everything will continue status quo anything under 1 month closure. once we start moving past that, then it might turn into shitshow of either really higher or really low pricing. these cars aren’t being manufactured either right now, so with anything supply and demand, pricing goes up when inventory is limited.
i know when i and several other dealers sold out of Bolt EVs last year, the dealers that had it were all sticker ++. so same for highline, maybe someone wants black exterior and pearl interior whatever… maybe only 2 stores will have that configuration so that creates demand.
we went from about 20 sales people to 6 and 3 finance managers to 1 as of yesterday.
laid off. paid out on vacation etc.
the finance managers will get called back in a few weeks but some of the sales likely wont.
myself and the ones left have been here like 4 years.
