Barron’s reports that Americans are getting back behind the wheel with a vengeance. Good news for all the manufacturers and dealers out there but also good news for parts companies, automotive insurers and rental car companies, too.
Wall Street analysts are now in agreement that various sectors of the car industry offer good opportunities for investors to dip their toes. While Car Sleuth isn’t in the business of promoting publicly listed company shares, the professional stock pickers are certainly looking at the space with renewed enthusiasm and optimism.
Over on this side of the pond, retailers have been busy. Pent up demand has led to high levels of enquiries. Dealers are also managing the handovers of vehicles that were sold just before the lockdown began that prevented buyers from taking delivery of their new cars.
I’ve had many inbounds regarding prices. Alas retailers have held firm and are not offering the types of discounts many were hoping for. Not only has demand been steady since dealers re-opened on June 1st thus negating the need to offer big discounts, but on the supply side it will continue to be interrupted for the foreseeable future. Simply put, manufactures aren’t able to build cars as fast as they could before the pandemic broke out because of new health and safety measures put in place to protect workers. This slowdown in production means less cars being delivered to dealers to be sold.
As always, for all of your car buying needs Car Sleuth is ready to help you get the best car at the right price.