How Covid-19 is Changing the Auto Industry

I give my thoughts on the changes that are going to happen to the automobile industry in both the short and long term.

I'm Double J and I love to talk about everything automotive. I like to keep people updated on my project vehicles, and daily drivers. I also like to give buying advise and find great warranties that otherwise may be lesser known. Please subscribe, like and watch my other videos. I'm going to make a real effort to get content up once a week. The more you like and subscribe, the more I'll make! I'd love for this to take off as cars are one of my true passions.

My notes:
Covid 19 and how it will affect the auto industry

We’re living in trying times:

Unemployment

Working from home

Teaching our children at home

And of course the devastating health effects of the virus

Covid 19 or coronavirus is going to change things forever

More people working from home

Car industry:

Short term:

People still need cars. Essential jobs, people doing essential trips. Saw a friend on facebook asking if she could go to a dealership and buy a car as hers was on its way out

Minimal interaction car buying

Used car delivery: Carvana and Vroom

Companies like Carmax already had limited interaction

Smaller dealerships seem to be missing out on these types of limited interaction transactions, or at least advertising them

In the short term, there are going to be some good deals on both new and used cars.

Stale inventory (lot rot) sell off old inventory at a discount, just to bring in some capital

Rebates from manufacturers

On the other side, with reduced interaction, you are going to see less negotiation

Sterilization

Long term effects:

People may like the minimal interaction style of car buying and it will become more popular

With the combination of unemployment, and increase in teleworking, car sales will go down

Might see a second Cash for Clunkers

Some weaker car companies and dealerships may not survive

Alfa Romeo, Fiat, Chrysler nameplate, and even Nissan/Infiniti

Again, I don’t have a crystal ball, but i do think it is going to play out like this