I think I noted that as I said part of the growth in days supply was the slow sales rate.
But it doesn't hurt to repeat the idea.
So near zero production for a month or so, and yet the supply is "growing" meaning dealers who are paying floor plan interest want something to entice shoppers into the showroom.
If rental car companies dump a bunch of used cars into the market, it's going to be tough for a while.
A savvy shopper should be able to get a good deal if they have cash to spend.
Originally Posted by Wolf359
Originally Posted by javacontour
Dealers are going to be begging for incentives because even with production halted, the supply of vehicles has grown by about 6 additional weeks of supply if I'm reading this correctly.
https://www.coxautoinc.com/market-insights/auto-market-weekly-summary-05-11-2020/
When 20% of the workforce goes on unemployment, it's hard to get qualified for a vehicle. Sales will be fewer. So part of the growth in days supply is the slow rate of sales.
Or, gasp, those that are getting MORE in UI than they got in wages due to the $600/week kicker, might be tempted to buy something they cannot normally afford.
It's going to be interesting.
Be very careful reading those numbers. Those days supply are based on current sales trends. Supply would have been down 12 days if the current sales trends had continued. It's only up because sales have slowed. If there is pent up demand and it shoots back up again, then supply will shrink pretty quickly. Lately I've noticed that some stores that were closed before were opening up again and also that there are lines at some stores where there weren't any before. My guess is that people are tired of being at home even though the stay at home order is still in effect.