According to Charlie Chesbrough, senior economist at Cox Automotive, “the market has made slow and steady gains since the April low, many headwinds are hampering our recovery.”
Consumer sentiment for the maximum component declined in July, while COVID-19 outbreaks in the south and west dominated the headlines. Concerns about peak unemployment, a suffering U.S. economy, and the resulting severe recession have also weighed heavily on potential auto buyers, which has prevented many buyers from doing so. Buyers who remained in the market were likely affected by a limited source of products at dealerships, as tight inventories have become a developmental challenge for new and used vehicles.