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Wednesday, 23 September 2020 17:59

Pretected Reveals COVID-19's Dramatic Effect on New Car Sales in the U.S.

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Many Americans continue struggling to get by following the highest unemployment rates since the Depression. Any kind of large-scale purchase might seem completely out of the question to most, especially a brand new car.

This is soberingly illustrated in Pretected's report of 26% fewer new cars being insured at this point in the year compared to 2019.

 

Purchasing a new car requires one to either have cash to buy outright, or to enter into a financing or lease agreement. For someone who may suddenly find themselves without an income the following month, this potentially disastrous arrangement could lead to severe debt and ruined credit.

According to Pretected, new car ownership has plummeted 26% from this time last year and continues to drop. Extended restrictions across the nation underscore that there is no guarantee of the market's recovery anytime soon.

 

However, new car sales may already be primed to rebound in areas that have relied heavily on public transportation in the past. Cities like Seattle, Philadelphia and Los Angeles normally show some of the highest use of public transport in the country, but ridership has almost vanished through the pandemic. Many of those who are able to commute prefer not to be stuck in an enclosed bus, train or even ride-share with strangers for any length of time.


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