Cars and the Corona....

suxeL

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Sorry, I always use Toyota and Lexus together LOL I think they go hand in hand. Lexus would likely increase market share despite falling sales as well. I don't think you will see numbers greater than the 08 recession, you might see less content in some vehicles to bring the price down somewhat...
With the ES factories and RX factories both taking time to come back online, I doubt lexus market share can increase. Best case scenario they hold steady, but with the CA border effectively shut, I dont think even the best case scenario is applicable without their best selling RX.

08s is an example but hard to use to navigate the current climate.
 

LexsCTJill

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With the ES factories and RX factories both taking time to come back online, I doubt lexus market share can increase. Best case scenario they hold steady, but with the CA border effectively shut, I dont think even the best case scenario is applicable without their best selling RX.

08s is an example but hard to use to navigate the current climate.
Lexus can import ES and RX from Japan to make up for the idle time. The CA border is actually still open, trade in North America has not been stopped.
 
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Juicy deals dry up
When analysts were expecting new-vehicle sales to crater by as much as 80 percent in April, automakers piled on 0 percent financing deals for up to 84 months, sending overall incentives to record levels. But with sales coming in stronger than expected — and further normalizing in early May — some automakers are pulling back on their best deals.

Fiat Chrysler Automobiles went in strong on 0 percent for 84 months on certain models, including some Ram pickups, but pulled back in May to 72 months on its most-attractive financing offers. At Hyundai, some 0 percent/84-month financing deals also were reduced to 72 months in May. Other offers remained, but with first-payment deferrals cut to 90 days from 120 days.

While automakers have been able to juice demand with rock-bottom rates and first-payment deferrals, they now face the prospect of tight supply since the coronavirus caused factories to shut down. As plants restart and sales volume rises, automakers will find a balance of attracting buyers while managing their reduced inventories.

SPARKING INTEREST

Many brands offered interest-free loans in April to lure U.S. consumers as COVID-19 sunk sales. Here are the percentages of 0% loans in the month. In April 2019, 0% financing accounted for 3.2% of all loans.

Brand % of loans
Land Rover 86%
Volkswagen 74%
Jaguar 66%
Subaru 56%
Ford 50%
Genesis 41%
Ram 41%
Lincoln 38%
Hyundai 36%
Jeep 31%
Source: Edmunds

"With consumers spending far less, automakers must do what they can to lure people into the market, and incentives are the best way to do that," said Jessica Caldwell, director of insights at Edmunds. "Even after shelter-in-place orders are lifted, incentives are expected to stay generous as the country begins to financially recover."

The 0 percent offers for new vehicles represented 26 percent of April sales, according to Edmunds. Mainstream SUVs garnered 48 percent of the loans, followed by pickups at 30 percent and mainstream cars at 15 percent. Luxury vehicles were just 5 percent of the total, but some premium brands offered 0.9 percent.

Leading the percentage of April loans at 0 percent was Land Rover with 86 percent of sales. In April 2019, only 3.2 percent of auto loans were at 0 percent.

The financing deals did what they were expected to do, said J.D. Power. Although the Detroit 3 didn't report sales last month, the full-size pickup segment saw the best sales by far thanks to financing and other incentives. Hyundai's retail sales fell just 28 percent in April. Honda — without the no-interest offers — saw retail sales dive 54 percent. U.S. sales overall last month were about 50 percent off vs. last year but had recovered to about 70 percent of normal by early May.
 

suxeL

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Lexus can import ES and RX from Japan to make up for the idle time. The CA border is actually still open, trade in North America has not been stopped.
Thought the border for trade was closed. Good info, CA plants were still closed until I believe this past Monday. We shall see what they can put out.
 

mikeavelli

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With the potential of a Hertz and other rental brands collapsing this will also hurt automakers who sell to them.

Dealerships and the model will change as they adapt to a new life. I think brands got so caught up in volume that now everyone is just in trouble. If you look around auctions or even autotrader there are unsold 2017/2018/2019 cars BEFORE Covid-19.

I also think a major issue will be the haves simply have too much and they ain’t buying accords and Camry’s. They will continue to buy but luxury and exotics. That doesn’t help volume car brands. The have nots and middle class will truly be in a pickle as the average new car is over $35,000 and without long loan lives, new cars are getting unaffordable to them.

By the end of the year we will really see things for what they are.
 

suxeL

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The Hertz collapse is interesting, as their exposure will effect both new and used car sales

General Motors has been the single biggest supplier for the Hertz fleet of 567,000 vehicles in the U.S., with GM models making up 21% of its fleet, spanning several brands. Fiat Chrysler Automobiles has been its second biggest supplier, contributing to 18% of its domestic fleet. Ford has been in the third spot, contributing to 12% of its fleet, while Kia models have accounted for 10% of the fleet. Toyota, Nissan and Hyundai vehicles accounted for 9%, 7% and 5% of the Hertz fleet, respectively.
The new fleet orders will probably be absorbed by the dealers quite easily in the interim since factories are closed. So the "loss of supply" dealers are hankering for isnt as cut and dry as they are making it out to be. We are also at midway point of the year, where factories begin to roll down current MYs and move to next MY mfg. Supply levels are up in the air...

The used fleet sales are whats going to drop values quick and for the foreseeable future.

I am surprised that the Toyota has exposure while Honda does not.
 

Sulu

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The Hertz collapse is interesting, as their exposure will effect both new and used car sales



The new fleet orders will probably be absorbed by the dealers quite easily in the interim since factories are closed. So the "loss of supply" dealers are hankering for isnt as cut and dry as they are making it out to be. We are also at midway point of the year, where factories begin to roll down current MYs and move to next MY mfg. Supply levels are up in the air...

The used fleet sales are whats going to drop values quick and for the foreseeable future.

I am surprised that the Toyota has exposure while Honda does not.
Honda corporate does not sell to fleets, so there are not large numbers of Honda models in a Hertz or Budget, etc. rental fleet. Individual dealers may still sell a few models at a time to a local rental franchise, though.
 

LexsCTJill

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Honda corporate does not sell to fleets, so there are not large numbers of Honda models in a Hertz or Budget, etc. rental fleet. Individual dealers may still sell a few models at a time to a local rental franchise, though.
Wow. Didn’t know Honda does not see you fleets direct. Good to know! Thanks @Sulu
 
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I am surprised that the Toyota has exposure while Honda does not.
It's not surprising, but Honda has done this practice like forever.

 

IS-SV

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Of the import brands, I read that Kia has most Hertz rental car fleet exposure.
 
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Of the import brands, I read that Kia has most Hertz rental car fleet exposure.
I don't doubt that, some of the last couple of vehicles I rented were Kias, and honestly, they were good rentals, as they had Carplay. But GM is still the most to put it in perspective. So Kia had 10%, but Toyota was right behind at 9%.

 

suxeL

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First off Nissani Hyundai sounds like Nissan owns the hyundai dealership LOL.

But I dont get why the dealership took in cars for service, and instead of storing them decided to let them be towed away on the customers dime.
 
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First off Nissani Hyundai sounds like Nissan owns the hyundai dealership LOL.

But I dont get why the dealership took in cars for service, and instead of storing them decided to let them be towed away on the customers dime.
I was just reading about this.

Nissani Bros actually has a Nissan franchise too, as they have 5 dealers on the same lot. Super shady guy. Currently Acura and Hyundai are gone, and I could imagine that the other makes he has might cut ties too.

He used to have a franchise with Toyota not too long ago either, and he did a similar thing.
 

suxeL

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So some random readings from the interwebs...sources are semi trustworthy (dealers/broker) and for the US only.

US built vehicles:
Canadian built RX inventory is drying up, and inventory is not expected until August in some places (wonder if EOP for MY20 and SOP for MY21 has been modified)

Japan built vehicles
UX inventory is drying up as well, but nothing like the RX.

All the other vehicles are TBD.
 
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2020 Lexus LC: Up To $15,000 Off


Lexus' flagship LC coupe is eligible for a whopping $15,000 incentive to help sell demo models in stock at dealerships. While your chances of finding a demo model may be slim, it may be worth shopping around if you're looking to save the most money on a new LC500 or LC 500h.

Alternatively, we think it's worth knowing that Lexus recently cut rates to 0% APR for 60 months and is offering the option to choose a $5,000 rebate instead. While there are other performance car deals out there, these offers may save you money on Lexus' priciest car.
 

suxeL

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Apparently its an excellent time to buy a SUPPPRAAAA 2020 have $3500 on the hood to move the metal...more then any other vehicle Toyota makes
 
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