With another million 'Mericans added to the unemployment rolls this week,
US Person thought to post another
ghoulish indicator of the economic calamity facing us:
People are not replacing their older cars. This fact could be attributed to a) with no wages, you cannot afford a new, higher car payment, and b) car quality is improving, allowing people to keep their existing rides longer. New car and truck sales were down 24% over last year in the first half of 2020. Sales are expected to return to
1970s level:
 |
| chart credits: Wolf Richter |
With more old cars on the road, car makers find it increasingly difficult to sell units. The national fleet has grown, now at 253 million cars, light trucks, SUVs and vans, but the pandemic has hit the industry hard, reducing both the number of sales and the amount of driving. Automakers have responded by increasing their sticker prices. Wolf Richter says that car prices have increased by 70% from 1990 to 2020, and pickup prices by 163% based on representative models.
