The Coronavirus Holds Down Auto Sales, But It’s Still A Seller’s Market
Tuesday December 22, 2020
Forbes, Dec. 22, 2020 – The deadly coronavirus pandemic continues to cast a shadow on the U.S. economy and auto sales, probably through at least the first half of 2021, until vaccines become more widely available, according to a forecast from Cox Automotive.
“We are starting to think things look a little bit tougher for the vehicle market,” said Charlie Chesbrough, Cox Automotive senior economist, in a recent webinar just before Congress passed the latest economic aid package. “We’re seeing vehicle sales under quite a bit of pressure this month.”
In a typical business cycle, it’s a buyer’s market when U.S. auto sales decline, because in a typical business cycle, the auto industry overproduces when sales first start to go down. Inevitably, that forces the automakers to cut prices to move the metal.