CLEVELAND, Ohio – What kind of cars will people buy in the wake of the coronavirus?
With more employees working from home, will couples downsize to one car? Will cheaper cars surge with uncertainties of about salaries amid a recession? Or will fun cars take off as a socially distant option to entertain yourself?
Buying habits will change, said Brian Moody, executive editor of Autotrader.
“Consumers are certainly going to be re-thinking their commute and transportation expenses,” Moody wrote in an email. “Now that we’ve seen, essentially, a majority of office workers CAN work from home, I think a lot of people will be rethink their garages: Yes, they might get something fun, but I suspect a lot of families will look to get something super cheap.”
Pat Primm, internet manager for Cascade Auto Group, says it’s still early.
“You have to realize January and February in the Cleveland market were record setting,” Primm said. “We were flying… The whole general market was just doing fantastic. It was like someone just flipped the switch. The brakes screeched and we came to an almost sudden stop.”
Northeast Ohio car sales were down about 36% in April, with 13,471 new vehicles sold in April, compared with 21,193 in April 2019, according to the Greater Cleveland Automobile Dealers’ Association.
But dealers are seeing glimmers of recovery in May, said association President Louis A. Vitantonio.
He’s seeing more first-time car buyers, who don’t want to share rides in Uber or Lyft during the pandemic and don’t feel comfortable taking public transit.
“I’d rather have my own vehicle,” he said. “I know it’s been sanitized and clean. I know who’s been in it.”
Will that trend last? Vitantonio doesn’t know, but the crisis already has lasted longer than many dealers had thought it would.
If a Harvard study is right, people would need to social distance on-and-off until 2022.
The pandemic and resulting recession will likely make people more budget conscious, Moody said.
“You need the comfort and reliability of pricier car if you have a long, daily commute and/or your livelihood depends on it,” he said. “If not, maybe a small, inexpensive SUV — maybe a used model — will be just fine since short errands become the main travel destination. Even a 10-year-old car without navigation, leather seats or a sunroof is reasonable if you take all those commuting miles out of the equation.”
Primm believes that because of Ohio’s shutdown, there’s a pent-up demand.
Between March and July, 1.8 million cars are coming off-lease. So lessees may decide to buy. Incentives exist to entice a sale.
“The deals that manufacturers have given us are absolutely phenomenal. People who might have been on the fence and thinking about it, they’re coming out to take advantage of it,” Primm said.
SUVs and trucks are popular because of low gas prices, he said.
For the first time ever, in Northeast Ohio in April, trucks and SUVs outsold cars.
To get a feel for what consumers are thinking, Editor Chris Quinn asked for thoughts about cars on our from-the-newsroom account, in which he shares once or twice a day what we’re thinking about at cleveland.com. You can sign up for free by sending a text to 216-868-4802.
Here’s what some readers said:
“I don't see a future of sing-e car households. Temporarily perhaps if a couple leases and lets one expire.”
“Personally for my household no. We all have jobs and places to be so we have four cars, three kids with summer jobs and my dad travels for work. Obviously things changed with corona but it still helps.”
“Very possible, especially since families may be faced with job and investment losses. We may continue with delivery services long term. And, the availability of Uber and Lyft means many of us have access to a second family car if needed or desired.”
“Possibly families or couples will only need one car or if safe can use public transportation . I lease and for sure this year I will be way under on mileage!”
“I've used one tank of gas since March 6. I hope to get a better trade in with my accumulated lower mileage and stick to one car - with car sales down I will be able to get an amazing deal on a better car. I might finally be able to afford a camper van, take advantage of low gas prices and take my son camping at the State Parks when they open.”
“Makes sense. Second cars may become "fun" cars, not for transportation but in the garage for special occasions or other personal preferences. Watch for even more sales of Jeep Wranglers as that second car!”
“We’ve had that discussion in our household. At the very least, the second car would be a very economical model vs. the comfort preferences we have today.”
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May 18, 2020 at 05:23PM
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What kinds of cars will people buy after the coronavirus crisis? - cleveland.com
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