Y101 Cash In A Flash

[Tisa Ammann]

US. passenger vehicle sales had already begun to fall after a historical annual high of 17.46 million vehicles in 2016. Auto debt was also flashing a red flag: Last year, economists warned that 7 million car customers were 90 days or more behind on their auto loans. Automakers were trying to avoid widespread profit-killing incentives. Then the pandemic hit.

Although no one is willing to go on the record saying so, dealers and other industry experts told The Times that when pressed, sales reps at many dealers will sell at a loss, just to keep some cash coming in.

Even with online transactions, delivering the car and finalizing the paperwork involves human interaction and therefore a risk of exposure, however small. Although many car dealers and most banks can accommodate electronic signatures, or can deal with paperwork transactions via FedEx, the state of California remains an analog holdout.

How long the pandemic lasts and how long showrooms remain shut is unknown. A March 30 survey by the California dealers group showed 130 of 322 dealers who responded said they could sustain operations at current sales levels for only one to three months. The group represents 1,409 dealerships total.

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