Hi brandon artisan president champion strategies and spokesperson for shop, smart autos, giving you the best information we can when it comes to your next automotive lease or buying situation.
We are here at the end of 2020.
Yes, it’s december 31st and you’re still looking for that right.
Vehicle now, despite promising news about effective vaccines in the pipeline, 2021 is still going to be all about the ongoing covet 19 pandemic and it’s equally continuing effects on the us economy in general and the us automotive industry in particular.
So if we take a 50 000 foot view on the economy, consumers and auto sales and what experts call a two-tier k-shaped recovery in 2021 from business shutdowns in the spring that started back in 2020 in a k-shaped recovery, higher income, households who can afford new and Nearly new vehicles continue to prosper relatively speaking.
That’s the upper right leg of the k.
Experts believe that the most likely scenarios, as opposed to a quick and uncomplicated v-shape recovery, a more prolonged u-shaped recovery or an up-and-down w shaped recovery.
In other words, no one has an exact handle of this unknown 2021, but we do know in total that expert’s latest full year forecast for 14.
5 million vehicles sold in 2020 and we’re talking about light vehicles.
Now that’s a big improvement that was forecast for only 13.
Last spring, but the forecast for 2021 is 15.
Now the news isn’t all bad, because new and nearly new vehicles are really the king gym of 2021, especially with more electric vehicles and hybrids being introduced by many manufacturers.
So, according to analysts, rather than use the high level of incentives to save money, many buyers simply bought more truck than car that they would have purchased.
Otherwise, now, when we speak of low income house polls, they’re going to be holding the brunt of this corona virus related job losses, these households and vehicles that they buy are on the slower recovery or the right lower leg of the k-shaped recovery.
High average transition prices for new and nearly new vehicles are driving most customers to older, used vehicles or out-of-the-market entries altogether.
In automotive terms, the halves include pickup late model used vehicles and niche luxury brands like tesla.
The have nots include airport rental fleets, sedans commuter cars with cheap fuel efficient, that’s what’s going on so in any case, looking forward having this information about new and nearly new versus the u’s the haves and the have-nots, we do know that currently this swing that we Went through in 2020 will probably be around for 2021.
So what are we saying still be diligent? Do your homework go to a dealer’s website? Do your research do as much research you can about the vehicle? You want about the trade that you’re going to trade in and about the financing.
Do all of your homework before you actually reach out to an individual dealer.
If you do that, you’re going to be protecting yourself and your family for the unknown of 2021.
, once again, brandon hardison president of champion strategies and spokesperson for shop, smart autos, i hope you had a interesting 2020, like all of us did and happy new year for 2021.
go out and make it a champion day.