buying Why car prices keep rising even amid the coronavirus pandemic

23:10  27 october  2020
23:10  27 october  2020 Source:   cnet.com

Honda, Nissan were targets for merger in Japan, report says

  Honda, Nissan were targets for merger in Japan, report says Some Japanese officials wanted the two automakers to merge, but both companies swiftly rejected the idea, according to a report.Sources speaking to the publication who are familiar with the frankly wild discussions said Japanese government officials brought the idea to Nissan and Honda in an effort to address two problems with the country's domestic automakers. Nissan had long been in trouble, and according to the sources, officials were frightened the Renault-Nissan Alliance could dissolve altogether. As for Honda, officials reportedly remain wary of Japan's third-largest automaker as rivals merge and consolidate.

The coronavirus pandemic , which was first detected in China, has infected people in 188 countries. Although it said that the coronavirus has plunged the world into a "crisis like no other" Coronavirus drove the price down further. Brent crude is the benchmark used by Europe and the

Our latest perspectives on the coronavirus outbreak, the twin threats to lives and livelihoods, and how The COVID-19 pandemic and a host of other factors—such as climate change, cyberattacks, and Why the disconnect? To understand the conundrum, McKinsey experts point to three factors.

Even amid the coronavirus pandemic and the ensuing economic turmoil, car prices continue to rise. That's probably counter to how the average car shopper imagines the situation would be shaking out, so what gives?

a row of parking lot: It's a sellers market. Ken Biddulph/EyeEm/Getty Images © Provided by Roadshow It's a sellers market. Ken Biddulph/EyeEm/Getty Images

Along with the latest data from TrueCar, we spoke with TrueCar's director of OEM Analytics, Nick Woolard, to understand what's going on in the auto industry to create this odd-on-the-surface effect. The good news for automakers is retail sales continue to climb from their low point this April when the pandemic caused numerous shutdowns in cities and states across the US. In September, retail sales rose 8% compared with September 2019. October likely won't be treated to similar gains, but still, TrueCar estimates retail sales will creep upward by 0.3%.

Ford, Honda, VW and BMW seal California fuel-economy and emissions deal

  Ford, Honda, VW and BMW seal California fuel-economy and emissions deal The voluntary deal flies in the face of newly announced standards from the Trump administration. © Provided by Roadshow The four automakers will improve fuel economy by 3.7% year-over-year, rather than 1.5%. Irfan Khan/Getty Images The California Air Resources Board sealed a new deal with the four major automakers on the matter, Reuters reported Monday, after initially announcing their intentions this time last year. CARB did not immediately return Roadshow's request for comment on the deal's finalization.

The pandemic has exacerbated a preexisting downward trend in the birthrate, which former Prime Minister Shinzo Abe called a "national crisis." The Japan Pediatric Association has warned the falling birthrate could be expedited by ten years because of the pandemic , a trend that could not only wipe

Even before the coronavirus pandemic , the economics of recycling were a mess. For it to make financial sense to recycle plastic bottles, a recycling company has to make more money selling the recycled material than it takes to gather and process those bottles. Given the low price of oil in recent

a row of parking lot © Ken Biddulph/EyeEm/Getty Images

The bad news for car buyers is despite the minor projected gains, average transaction prices will climb another 3.1% this month -- 0.7% higher than in September. That means car buyers are going home with more expensive cars. Yes, even amid the coronavirus pandemic.

So we asked Woolard, is this simply because car shoppers accept the higher prices? Does the pandemic mean only better-off shoppers are buying cars?

These used cars sell the quickest, study says

Woolard acknowledged that ATPs continue to climb for new vehicles amid the pandemic, but one of the main reasons was a pretty well-known factor even before COVID-19 became a common term in our vocabulary. A "shifting consumer preference toward larger trucks and SUVs " plays a role, since they're often more expensive than, say, a compact car. However, the coronavirus did help push ATPs higher as nearly every automaker shut its production facilities down.

Ford Mustang successor will live through the end of this decade, report says

  Ford Mustang successor will live through the end of this decade, report says Production of the 7th-generation pony car should start in 2022, which suggests a reveal could happen as soon as next year.Citing sources close to the Blue Oval's plans, industry publication Automotive News reported Monday that Ford will keep this next pony car around for a lengthy eight-year product cycle. AN's sources also reaffirmed a 2022 production start date, which would give the next Mustang life through the end of this decade at least.

Coronavirus outbreak: Pandemic increased crew member exploitation, UN believes. Netherlands’ new partial lockdown to impact foodservice again. The Dutch prime minister Mark Rutte has announced a new partial lockdown amid rising coronavirus cases in the country.

However, even the countries that the new coronavirus has hit less aggressively are still under considerable strain. China appeared to manage the coronavirus outbreak effectively, putting in place early travel bans within the country itself.

Woolard said these shutdowns created a supply crunch, so when buyers went looking for new cars, there weren't many of them available. Dealers were able to charge more, or perhaps sell shoppers on a more expensive model just so they could go home with the car they wanted. "With demand well above anticipated levels and lower supply, it's a seller's market for new cars and trucks," he said.

That's starting to change as automakers finally start to catch up on production, though, so we should start to see some easing. TrueCar projects new car inventory will stay on the low side overall, however.

Part of the surge in car prices amid an economic downturn is definitely due to the fact the pandemic hasn't struck everyone equally, however. Woolard noted that Lamborghini set a new all-time sales record last month. Those with the means to buy a supercar aren't deterred by the pandemic and the crunch lands on other Americans.

On the flip side, the pandemic may have helped those with average incomes to step into more expensive cars. Woolard named lower fuel prices and very attractive finance offers as a way to lower the cost of ownership for average buyers.

This was originally published on Roadshow.

Tested: 2007 Compact Car Comparison .
Somewhere south of 20 grand, there's a sweet spot of cheap miles and wide smiles. We compare seven of the contenders—Toyota Corolla, Honda Civic, Hyundai Elantra, Mazda 3, VW Rabbit, Nissan Sentra. From the December 2006 issue of Car and Driver.What's not to like about combining frugality with fun? Nissan's all-new-for-2007 Sentra comes standard with a six-speed manual. Let's round up the whole class of compact four-doors, equip them with all-natural U-shift-'em gearboxes, and enjoy driving while we compare choices at the low-budget end of the market.There's action once again in the small-car biz.

usr: 2
This is interesting!