What kinds of cars will people buy after crisis?
What kind of cars will people buy in the wake of the coronavirus?
With more employees working from home, will couples downsize to one car? Will cheaper cars surge with uncertainties of about salaries amid a recession? Or will fun cars take off as a socially distant option to entertain yourself ?
Buying habits will change, said Brian Moody, executive editor of
Autotrader.
“Consumers are certainly going to be re-thinking their commute and transportation expenses,” Moody said. “Now that we’ve seen, essentially, a majority of office workers CAN work from home, I think a lot of people will be rethink their garages: Yes, they might get something fun, but I suspect a lot of families will look to get something super cheap.”
If a Harvard study is right, people would need to social distance on-and-off until 2022. The pandemic and resulting recession will likely make people more budget conscious, Moody said.
“You need the comfort and reliability of pricier car if you have a long, daily commute and/or your livelihood depends on it,” he said. “If not, maybe a small, inexpensive SUV — maybe a used model — will be just fine since short errands become the main travel destination. Even a 10-year-old car without navigation, leather seats or a sunroof is reasonable if you take all those commuting miles out of the equation.”
Pat Primm, internet manager for Cascade Auto Group. believes that because of the shutdown, there’s a pent-up demand.
Between March and July, 1.8 million cars are coming off-lease. So lessees may decide to buy. Incentives exist to entice a sale.
“The deals that manufacturers have given us are absolutely phenomenal. People who might have been on the fence and thinking about it, they’re coming out to take advantage of it,” he said.