It looks like vehicle sales sank to a record low in April. Figures from some of the automakers are due out later Friday, but analysts expect to see a drop of more than 50% compared to this time last year.
The sales figures could be worse than the previous low in January 2009, at the depths of the financial crisis. Analysts’ figures show that around 625,000 vehicles were sold in April.
But the over-50% drop-off isn’t as bad as China saw at the height of its COVID-19 lockdown. Eric Lyman, chief industry analyst at TrueCar, said sales dropped 80% there.
For some U.S. shoppers, the coronavirus may have actually driven a car purchase.
“We know that public transportation is something people are shying away from,” Lyman said. “We know that the vehicle is an integral part to our American life.”
Sales held up better in parts of the county with less strict stay-at-home measures. Michelle Krebs, executive analyst at Autotrader, said people with incomes in the $50,000 to $99,000 range are doing most of the buying, and pickup trucks continue to be popular purchases.
People hold on to trucks for up to a decade, Krebs said, so recent incentives have been very popular.
“Zero-percent financing for 84 months — it works really well with trucks,” Krebs said.
Analysts say April’s figures should be as low as sales go, and they could recover, even if only modestly, in May.
What’s going on with oil prices?
In April the price of U.S. crude oil fell into negative territory for the first time ever. Essentially, that means producers are paying buyers to take supplies off their hands. But it’s hard for consumers to benefit from any price drop when lockdowns are in place and there is nowhere to go.
Is takeout food safe during COVID-19?
The short answer is yes. You can read the long answer, and all the caveats, here.
Is it worth applying for a job right now?
It never hurts to look, but as unemployment reaches levels last seen during the Great Depression and most available jobs are in places that carry risks like the supermarket or warehouses, it isn’t a bad idea to sit tight either, if you can.
You can find answers to more questions here.
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