Rental car companies usually account for 10%+ of US new car sales during normal times
Two-thirds of rental car revenue comes from airport locations, but air travel was down 94% in April and May
Much of the remaining revenue for rental car companies comes from consumers who were involved in car accidents, and those have been down due to people not commuting nearly as much to work in their cars.
Due to all of this, rental car companies are trying to dump their inventory, but are even struggling at that due to dealerships not being able to buy as many cars, if any at all, from rental car companies.
This will then lead to the gluttony of near market used cars that are offered at lower prices than usual, which will then make these near market used cars much more attractive to car buyers vs. new vehicles since the near market used cars will be cheaper than usual compared to the new models
10 Years of Electric Vehicle Sales Growth are Projected to Come to an End in 2020, but Tesla Just Cut Prices by up to $5K
Analysts can’t agree on how much of a hit EV sales will take this year, but it does look like 10 years of continuous growth will end this year with demand weakening. (Source: Axios, Cononavirus Shatters Electric Vehicles’ Crystal Ball).
Aftermarket Parts Retailers Are Seeing their Stocks Rise as Americans are Doing More Work on their Cars
Americans who either can’t wait for repairs or have extra time on their hands for DIY projects are flocking to auto parts retailers like AutoZone and Advanced Auto Parts. This indicates that there is still a huge market for dealerships to increase their aftermarket parts sales and repair/service appointments.
Social CPMs are also down but not as much, decreasing between 10-40% depending on the platform and type of campaign
How COVID-19 Could Permanently Change Agencies
Increased automation, a distributed workforce, fewer expenses tied to real estate, and less travel for agency employees all leads to potential permanent changes to advertising agencies. (Source: AdExchanger, Agency Life: COVID-19 Will Cause 4 Permanent Changes)