Sunny skies ahead for CPO sales, U.S. consumer spending, and used-car prices! Plus, read how automakers are working to avoid another production storm cloud.
FROM AUTO REMARKETING: CPO Vehicle Sales Show Dramatic Gain From April
2020 started off as another record year for CPO sales. Now, thanks to an 87% month over month rise from April to May, current sales are up to 977,333 units, only a 16% decrease year-to-date.
FROM CBT NEWS: Major Purchases Surge, Showing Pandemic Recovery in Motion
U.S. consumer spending is down 13.6%, but new home and car purchases are on the rise, with mortgage applications up 18% year over year and 1.1 million new vehicles sold in the month of May. Analysts believe these signs, and historically low interest rates, are clearing the path for ramped up sales in the months to come.
FROM WARDSAUTO: Used-Car Prices Improve, but Prognosis Iffy
Wholesale vehicle prices are only now seeing signs of recovery after April saw the largest drop in average price since the 90s. But, as both auctions and showrooms come back to life, analysts still fear the effects of the large amount of inventory waiting to be sold.
FROM BLOOMBERG: Automakers Are Ramping up Production, Unnerving Factory Workers
Reopened Michigan automakers have been successful in preventing mass outbreaks, and are now adding longer hours and extra shifts to make up for lost production time. However, workers and the UAW worry the rush to produce will overshadow many of the safety measures put in place.