Market Report Sees Challenges

By Staff Writer April 01, 2020

Black Book projects a significant reduction in U.S. new vehicles sales in 2020, despite low interest rates, cheap fuel and increased OEM  incentives.

However, the company said there is a high probability that the sales of older, cheaper vehicles in good condition will not decline as much due to increased demand on those units.” 

Black Book’s March 30 COVID-19 Market Update predicts new-car sales to drop to 2009-levels this year and sees challenges in the auction lanes, including increased no-sale and low-values on sold units, but remarketers do not plan to lower floors at this time, the report stated.

Dealers have so far held a “wait-and-see” attitude, Black Book reported.

Black Book predicts a 40 percent drop of U.S. new-car sales to 10.2 million this year due to recession, increased unemployment, consumer confidence and supply chain issues.

Chinese auto sales fell 21.6 percent in January and 80 percent in February, the reported stated.

Manheim continues hosted digital sales at press time, while some independent auctions remained open but moved to virtual sales.

Factories have announced closures. Ford has pushed back the date for rebooting some of its factories in North America. The Detroit automaker had planned to reopen an assembly plant in Mexico on April 6 and several other plants, including one in Dearborn, on April 14. The company has not announced when the plants will reopen.

Honda, Toyota and others have goals to also to open up production in April, Black Book reported.

The report projects a short-term drop in 1- to 6-year-old  wholesale prices and an overall drop of 13 percent in wholesale prices.

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Last modified on Friday, 03 April 2020 12:21

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