Automotive stakeholders are curious how U.S. auto sales will fare through the coronavirus pandemic. At Cross-Sell, we took a look at unique markets where the most cases of COVID-19 were reported to see what impact it had on new car sales.
The below results reflect new car sales in the New Orleans market – 50 miles outside of their central zip code.
|Mar 2019||Mar 2020|
|New Car Sales||7,330||6,296|
|Jan 2020||Feb 2020||Mar 2020|
|New Car Sales||7,724||6,661||6,296|
Overall, We see a 14.1% drop in March 2020 over March 2019 and a 5.4% drop over February 2020. February is historically not a great month for U.S. auto sales because of the cold weather and the manufacturer incentives that wrap up in January.
Dealer Spotlight: Ray Brandt CDJR
In their PMA, Ray Brandt CDJR still showed an increase in sales. It appears to be business as usual at the store as their website mentions nothing about COVID-19 precautions or steps taken to reduce the spread of the virus. By all measures, their hours of operations have not changed.
Meanwhile, neighboring CDJR dealers like Bergeron showed a drop in sales. Bergeron closed their stores on Saturdays and Sundays and asks that shoppers call ahead for an appointment. “We may conduct business by appointment only to support essential businesses, municipalities, and medical personnel needs.” says McLean Bergeron, vice president of marketing.
Both CDJR stores are competitive in the New Orleans area.
|Ray Brandt CDJR||Mar 2019||Mar 2020|
|New Car Sales||64||90|
|Ray Brandt CDJR||Jan 2020||Feb 2020||Mar 2020|
|New Car Sales||112||63||90|
By this spotlight, it appears that consumers have remained open to purchasing vehicles during the pandemic, it’s just a matter of which franchise is more available to facilitate the sale.
Cross-Sell is looking at trends in other markets that may reveal how dealers are handling the pandemic.
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