4 ms·

It was not mentioned in the article, but it seems like there’s also lower inventory on car lots due to the slowdowns and closures of auto plants in the spring.

galkk 6y ago
Barely. The demand also went down, and thousands cars are stuck in ports [1] and even on ships [2], [1] https://driving.ca/nissan/auto-news/news/suvs-on-cargo-ships-stuck-in-the-ocean-as-u-s-ports-crowded-with-unsold-cars https://driving.ca/nissan/auto-news/news/suvs-on-cargo-ships... [2] https://www.google.com/search?client=firefox-b-1-d&q=cars+stuck+ports https://www.google.com/search?client=firefox-b-1-d&q=cars+st...
- pbourke 6y ago
  That was true a few months ago, but things have changed. Many North American factories closed down or curtailed production in the March-April-May timeframe. There was a rebound in demand as spring turned into summer (which was a major point in the article), but the supply chain to deliver the vehicles to meet that demand had stalled. "growth in supply has yet to catch up to demand" (11 Aug) https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/tight-us-auto-inventory-likely-to-hit-already-depressed-car-sales-experts-say-59776691 https://www.spglobal.com/marketintelligence/en/news-insights... "Auto dealers in states with new virus outbreaks have a bigger problem: low inventory" (20 July) https://www.detroitnews.com/story/business/autos/2020/07/20/covid-hotspots-auto-dealers-low-inventory/5446996002/ https://www.detroitnews.com/story/business/autos/2020/07/20/... "The car shortage is a big story. Between people moving to the suburbs and avoiding public transportation (so they need cars) and the factories having shut down or slowed down due to COVID, we're running out of available cars." (5 Aug) https://twitter.com/TheStalwart/status/1291110174879514628 https://twitter.com/TheStalwart/status/1291110174879514628

galkk 6y ago

Barely. The demand also went down, and thousands cars are stuck in ports [1] and even on ships [2], [1] https://driving.ca/nissan/auto-news/news/suvs-on-cargo-ships-stuck-in-the-ocean-as-u-s-ports-crowded-with-unsold-cars https://driving.ca/nissan/auto-news/news/suvs-on-cargo-ships... [2] https://www.google.com/search?client=firefox-b-1-d&q=cars+stuck+ports https://www.google.com/search?client=firefox-b-1-d&q=cars+st...

pbourke 6y ago
That was true a few months ago, but things have changed. Many North American factories closed down or curtailed production in the March-April-May timeframe. There was a rebound in demand as spring turned into summer (which was a major point in the article), but the supply chain to deliver the vehicles to meet that demand had stalled. "growth in supply has yet to catch up to demand" (11 Aug) https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/tight-us-auto-inventory-likely-to-hit-already-depressed-car-sales-experts-say-59776691 https://www.spglobal.com/marketintelligence/en/news-insights... "Auto dealers in states with new virus outbreaks have a bigger problem: low inventory" (20 July) https://www.detroitnews.com/story/business/autos/2020/07/20/covid-hotspots-auto-dealers-low-inventory/5446996002/ https://www.detroitnews.com/story/business/autos/2020/07/20/... "The car shortage is a big story. Between people moving to the suburbs and avoiding public transportation (so they need cars) and the factories having shut down or slowed down due to COVID, we're running out of available cars." (5 Aug) https://twitter.com/TheStalwart/status/1291110174879514628 https://twitter.com/TheStalwart/status/1291110174879514628