ROGERSVILLE, Mo. -- The forced shutdowns because of the coronavirus are having negative effects on nearly every industry, and that includes the car industry.
Local dealers say once factories closed down and stopped making new cars, the trickle down effect was felt by dealers and customers.
There is good news, bad news. Interest rates are low, which is great for buyers. But supply is low, too, which drives up prices on what you're looking at.
For instance, the lot at Clouse Motor Company in Rogersville is typically full. But right now, it's only about half that. And that same story could be true for many lots.
"Just doing our best to keep them on the lot," said Lance Clouse.
He says the car business was in constant motion, until COVID unexpectedly put on the emergency break.
"We would hope to buy on average 8 to 10 units, or cars, per auction throughout the week. We're lucky at this point now-- I'd say that number has easily dropped in half, if not more," Clouse said.
The only Springfield car auction on West Sunshine was forced to stop auctions for six weeks, due to the coronavirus.
"Having to go to the community, Craig's List, Facebook Marketplace, anything we could just to find inventory. But yeah, there was nothing on the market to even be able to buy."
The wheels are slowly starting to turn again at the auction, which is great news. But biting the bullet the most during this was Mr. Clouse himself, and the many dealers in our area just like him.
"Of course the lender is still only going to finance you so much, so really what it comes down to is we're having to pay more but on the flip side, on some of them yes we can mark up a little more, but on others it's a little tougher because the bank is going to cap you out, so it just slims our profit margins is what it does."
Buyers can expect to pay more on average, too, right now. Customers are spending 10-percent more now than they did pre-COVID, for the same vehicle.
If you are in the market for a vehicle new or used, you can save money right now on lower interest rates for the loan.
Clouse says it was also good to see friends, neighbors, etc, come out to his lot to sell their used car, in order to help with inventory.
If you are looking to get rid of your current vehicle, places like Clouse and many other dealers are looking to buy.
The Springfield auction has since re-opened.
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June 17, 2020 at 04:33AM
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CARS AND COVID-19: Low inventory drives up price for dealers and customers - KY3
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