Will the pandemic economy cause a drop in new car prices?

[Alfisti]

Originally Posted by bimmer pleaser V2

yeah some people don't realize what is happening right now. Hospitality and air travel industries are getting annihilated not to mention US oil and Gas industry was already on life support before this thing started... this is a perfect storm. Best case scenario it'll be a mild recession or hard market correction. I'd not buy a car anytime soon.

HUH?? Best case scenario it's 2008 mega recession, but i expect a full blown 1930's depression.

Guys we are talking 20% unemployment. This is going to be incredibly painful.

[jamesinaz]

I really hope the depression doom and gloom doesn't happen. Not swaying it won't. Predicting how we come out of this is way above my pay grade.

I do know my current ride is on lease which ends June 15. Our other car is paid for with low miles and we could live with just one car. But if car prices really dump I'll probably want a second car again. Just not sure at this time if I want another new lease or buy new/used.

Really uncertain times.

[Alfisti]

How does it not?

Consumers are going to stop spending, all at once. I am telling you, 30 days from now it's going to make 2008 look like a party, no one is producing any money!

[jamesinaz]

Originally Posted by Alfisti

How does it not?

Consumers are going to stop spending, all at once. I am telling you, 30 days from now it's going to make 2008 look like a party, no one is producing any money!

Nothing personal but I really hope you are wrong.

I am too old to be in a depression. Guess I got enough stuff to stay drunk and play golf another year so we'll see.

[Alfisti]

Oh I hope i am an imbecile that is over reacting so i can laugh at myself.

[jamesinaz]

Originally Posted by Alfisti

Oh I hope i am an imbecile that is over reacting so i can laugh at myself.

I have to confess (and it hurts based on yesterday and today) but I got out of the market a few weeks back. I hope you are wrong but fear there is a big recession coming as well.

[eluded]

They are predicting 15 to 20% GDP loss in March. That can't be good. California had 1 million people file for unemployment in last few weeks. That's 2.6% of the total CA population, NOT the population that is eligible to work. The worst is yet to come.

[DBV1]

Originally Posted by Alfisti

You guys are incredibly optimistic. it's going to take a solid 3 to 5 years to get back to where we were.

I don’t believe that. US Economy was great before this and if we can get through this quickly will be great again. Lots of pent up demand and I am one of them.

You will be right if this just keeps going, but don’t believe it will...

Many other economies will not fare as well.

[Alfisti]

Chief, really, how? During the biggest slow down since the 30's we saw a peak of just under 700 jobless claims in a week in the usa, we just hit well over 3 million.

Our entire economy has basically ground down to nearly nothing, man wake up, we are talking 20, 25, 30% unemployment.

Again hope i am wrong but I am not sure what i am seeing that others are not seeing.

[DBV1]

Just don’t buy it. You guys are buying into the doom and gloom of the media.... Our economy will bounce back quickly.

[Alfisti]

If anything the media is down playing it. I have been saying for weeks, i don't think people realise what is coming.

I was just told i am taking a 10% pay cut. So far I am more right than wrong. Strap yourselves in people.

[FuriouslyFast]

Media always tries to sell fear, but when the actual # of people out of work says otherwise, we need to worry. The rest of us working for non-essential companies should worry. My company was crap before this. I definitely think I might be on UE soon & also homeless since the house I rent has been sold & I need to find a new place. No one rents to jobless people!!!!

[Mr Pete]

Originally Posted by Alfisti

Chief, really, how? During the biggest slow down since the 30's we saw a peak of just under 700 jobless claims in a week in the usa, we just hit well over 3 million.

Our entire economy has basically ground down to nearly nothing, man wake up, we are talking 20, 25, 30% unemployment.

Again hope i am wrong but I am not sure what i am seeing that others are not seeing.

Well, the unemployment number is inflated, due to Covid. Many businesses were temporarily forced to close, like mine, or significantly reduced hours. Employees laid off, furloughed, etc. Yes, I had to file for unemployment like the millions of others out there. I've been paying UI tax for so long, I may as well get something back now while I sit at home waiting for the state to let me get back to work.

Once this blows over, the unemployment number won't be as high as it is now. Americans will return to work. I think some businesses will stay closed, but most will return. The CARES act will help tremendously. But unemployment will be higher than it was pre-Covid, and I'm sure that will be a concern.

I think many businesses, particularly small businesses, may start to operate a bit more leaner. I'm already starting to think about which staff I may let go, as some just cost too much. There will be a surplus of applicants for every industry. This could have been a well needed reset button for the economy.

But don't listen to me. I've been stuck at home for a week now with my kids. This shit does strange things to the logic part of your brain.

As far as new cars, I think dealers will have a surplus of new. And used. Nobody will be buying anything, except the 1%'s. At least in the short term. Business returns as usual. Americans love material possessions, and will continue to buy shit regardless of how much savings they have. It's the American way!
Be well and healthy all!

[jamesinaz]

Originally Posted by Mr Pete

Well, the unemployment number is inflated, due to Covid. Many businesses were temporarily forced to close, like mine, or significantly reduced hours. Employees laid off, furloughed, etc. Yes, I had to file for unemployment like the millions of others out there. I've been paying UI tax for so long, I may as well get something back now while I sit at home waiting for the state to let me get back to work.

Once this blows over, the unemployment number won't be as high as it is now. Americans will return to work. I think some businesses will stay closed, but most will return. The CARES act will help tremendously. But unemployment will be higher than it was pre-Covid, and I'm sure that will be a concern.

I think many businesses, particularly small businesses, may start to operate a bit more leaner. I'm already starting to think about which staff I may let go, as some just cost too much. There will be a surplus of applicants for every industry. This could have been a well needed reset button for the economy.

But don't listen to me. I've been stuck at home for a week now with my kids. This shit does strange things to the logic part of your brain.

Be well and healthy all!

As a retiree I sit here wondering how people at home with 3-4 kids from 5-14 are managing.

[Mr Pete]

Originally Posted by jamesinaz

As a retiree I sit here wondering how people at home with 3-4 kids from 5-14 are managing.

When my wife returns home from work, I immediately leave the house for a 1 hour walk with my dog lol

[VisualEcho]

I love my OG M2, but if Acura drops the price of the NSX far enough, yeah, I'm there, Rona be damned.

[GenXer]

I have to go into work because I'm "Essential"

But most everyone is locked in their offices and all of our meetings are online.
If I had a virtual presence robot I would stay home too.

[Mr Pete]

Originally Posted by VisualEcho

I love my OG M2, but if Acura drops the price of the NSX far enough, yeah, I'm there, Rona be damned.

You're the 1% that will be fine.

Make sure you post pics when you get the NSX. You will get it. I love that car.

[VisualEcho]

Originally Posted by Mr Pete

You're the 1% that will be fine.

Make sure you post pics when you get the NSX. You will get it. I love that car.

Not without selling the Exige, I'm afraid. And this is decidedly the WRONG time to sell such a car.

But it's ok, this will pass, the Exige sale will wait, and I'm sure I'll find a barely used pristine NSX in 3 years for $60K.

[VisualEcho]

Originally Posted by GenXer

I have to go into work because I'm "Essential"

Yup hahaha

[Mr Pete]

Originally Posted by GenXer

I have to go into work because I'm "Essential"

But most everyone is locked in their offices and all of our meetings are online.
If I had a virtual presence robot I would stay home too.

Be thankful you can work.

[GenXer]

Originally Posted by Mr Pete

Be thankful you can work.

I'm also putting my elderly parents at risk because they live with me but I still have to go work as usual. My dad has a heart disease and diabetes and had a triple bypass a little while ago. Despite all the necessary precautions I still have to interact with a myriad of people throughout the day.