Originally Posted by CKN
Originally Posted by john_pifer
Originally Posted by CKN
You are not going to have people borrow money in a declared pandemic regardless of the interest rates. Don't see how this was a great move-honestly.
Why do you say that?
People still need to borrow money to buy cars and houses, just to name a couple of the biggest purchases people make.
NO. In a time of uncertainty people don't buy vehicles or other capitol purchases-that's a fact.
I can assume you never have been through a recession-or forgotten how they affect the economy and what industries.
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Morgan Stanley expects the coronavirus outbreak to send U.S. sales down 9 percent this year, it said in an investor note last week. Before the outbreak, analysts had expected a modest decline of 1 percent to 2 percent in 2020.
LMC Automotive cut its U.S. forecast by nearly 300,000 vehicles to 16.5 million, a 3 percent drop from 2019.
"Whether you believe there is a public overreaction or that COVID-19 is actually a public health crisis … there is no denying the expected negative impact it will have on the economy and auto industry," Jeff Schuster, LMC's president of global vehicle forecasts, said in a statement.
If the economy recovers rapidly from coronavirus concerns, TrueCar subsidiary ALG projects new-vehicle sales of 16.4 million in 2020, down 2.9 percent from its initial forecast and 3.8 percent from last year's total. A longer economic slowdown could result in vehicle sales of 14.5 million this year, ALG said, 14 percent below its initial 2020 predictions."
I'll be surprised if full year sales exceed ten million in this country in 2020.
We are on the cusp of an economic contraction that will match what happened in 2008/2009.
Cheap gas or no, few are seriously looking at new vehicles and many are wary of visiting any dealership.