Author Topic: COVID 19 Impact on Automobile Industries?  (Read 1732 times)

SteveGood

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COVID 19 Impact on Automobile Industries?
« on: April 14, 2020, 11:45:30 PM »
Hi,


After the COVID 19 impact most of countries in the world announced lockdown. And most of the automobile industries stopped their production, then what happen  in the future if automobile cost increase or decrease?

Eric

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Re: COVID 19 Impact on Automobile Industries?
« Reply #1 on: April 18, 2020, 06:20:35 PM »
Immediate impact, fed cut rates and short-term interest rates are down. Lease rates and finance rates are down. If you have a lease coming up for renewal, it's not a bad time to sign for a new lease. much better than 12-18 months ago when interest rates were higher.

In terms of deals getting a car, it's mixed. supply chains are disruptive and factories are closed. Cars on the lot are on the lot and new cars will take a while to come. The cost to finance those cars (dealer floorplan) got cheaper, and the dealers can sit and wait a bit. New cars in general won't get much cheaper and certainly not a fire sale prices. You are also seeing some new 2021 models that are due out this summer getting pushed back to 2022 model years. this will take some supply out for new cars. There may be an odd slow selling model that the manufacturers will throw extra incentive money at, but few fire sales.

Where I think the value in cars will be in 6-12 months on the used side. right now there is a lot of payment deferral programs out there so drivers who have lost their jobs and haven't made payments are still "current" on their loan. Once those deferral programs are up, there is going to be an uptick in repossessions and the used market will have a glut of cars.



SteveGood

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Re: COVID 19 Impact on Automobile Industries?
« Reply #2 on: June 08, 2020, 12:38:10 AM »


This days most of the automobile industry switch to healthcare products manufacturing partially for improve their revenue and fulfill their country healthcare product requirements.