Money Makers Mentor

COVID-19 Drives Down New Car Sales, Used Car Sales Up

The COVID-19 pandemic has significantly impacted consumers’ behaviors and reduced demand for products and services to date in 2020. Automakers have been as susceptible as many other industries.

Major car manufacturers reported grim financial outcomes of the second quarter, uniformly citing the effect of coronavirus.

The industry underwent the severest shortfalls in retail sales over the initial phase of the pandemic in March and April. A steady yet sluggish recovery has followed ever since. 

Mandated lockdowns and dealership closures, suspended production and distribution, and the recession are among the primary factors that automakers mention. Besides retail car sales, work-from-home arrangements and travel restrictions also eroded fleet vehicle sales, such as rental and bu…

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