Pandemic gives edge to vehicles
Not long ago, in the prepandemic age, car makers braced for the possibility that Americans would eventually stop buying vehicles, choosing instead to rely upon ride-hailing, especially once self-driving car technology becomes widely available.
But COVID-19 has upended those expectations, swinging the pendulum back in the direction of personal car ownership as Americans say they're increasingly likely to drive themselves instead of riding in someone else's car or taking mass transit.
Of Americans currently shopping for vehicles, more than 1 in 5, or 22%, had not planned to buy one before the pandemic began, according to a recent survey by car-buying site CarGurus.
Times are still challenging for the industry. Car sales have declined in 2020 due to the economic down turn and record unemployment. The Center f or Automotive Research, a nonprofit that tracks the industry, projected 2020 U.S. sales of about 13 million vehicles, down from a previous forecast of about 17 million.
But the long-term trends may be positive for automakers.
Among car shoppers who had used ride-sharing, about 2 in 5, or 39%, say they plan to use those services less often from now on, according to the June Car Gurus survey. And among car shoppers who previously used mass transit, more than 2 in 5, or 44%, say they plan to take public transportation less often.
On the whole, 1 in 3 say they expect to use their vehicle more often when the pandemic is over.
“The conclusion is that people are really seeing cars in a new light, both as an escape – a way to get away from the quarantine and stress that we've all had over the past several months – but also as a safe way to get around,” said Madison Gross, director of consumer insights for CarGurus.
The bottom line: While analysts say it' s difficult to know exactly how transportation will change after the coronavirus, the death of personal car ownership has been greatly exaggerated.
Concerns about ride-hailing safety
Ride-hailing apps Uber and Lyft have taken steps to require masks and roll out disinfecting processes. But their rider ship has dropped as Americans, who don't need to get around as much at the moment, have grown more apprehensive about riding in vehicles that strangers are using throughout the day.
Will those concerns linger beyond COVID-19? That's harder to say.
But at the very least, the pandemic has caused some to be wary of ride-sharing vehicle surfaces, which were already known to carry significant bacteria.
“If people feel safer in their cars rather than going through car-sharing services, that should bode well for us because we're in the business of selling new cars,” Hyundai sales executive Randy Parker said in an interview. “So we welcome that opportunity to have those consumers take a look at our product.”