Car dealers in the D.C.-area are considered essential businesses and are still open during the coronavirus pandemic, but they are struggling to move cars off their lots.
“I would say in the D.C. metro region, car sales are down about 70%,” said John O’Donnell, president and CEO of the Washington Area New Automobile Dealers Association.
The guidance the association has given its 220 or so dealerships is to remain open, but not for walk-ins.
“Signs are to be posted saying ‘closed to the general public, open for sales by appointment only’. So they’re not to be let into the dealership until they schedule an appointment,” O’Donnell said.
Under state orders, social distancing must be maintained, and dealers are regularly cleaning and disinfecting frequently touched surfaces.
“[Dealerships] are very much adhering to all of the guidance that they’re supposed to because they don’t want to be shut down completely,” O’Donnell said.
When it comes to money matters, dealers are eligible to get emergency help from the federal government through the CARES Act and the Payroll Protection Program.
“Initially for some smaller dealers there was a knee-jerk reaction to let everybody go. Then the CARES Act came out … and those that were actually let go were in many cases rehired,” O’Donnell said. “We’ve had some dealers maintain everybody, albeit with a slight cut on compensation. We’ve had some dealers who have employees who refuse to work.”
Of course online car buying was available well before the coronavirus pandemic, but O’Donnell said the information he’s getting is that’s not the method most buyers prefer right now.
“Internet traffic with respect to dealerships is actually down and … people who are purchasing cars appear to want to come see the product in person, whether the car’s delivered to your home and you take a test drive that way, or you travel to the dealership,” O’Donnell said. “They don’t seem perfectly comfortable purchasing a vehicle purely online. They want that human interaction, and the ability to reach out and touch the vehicle.”
You’ve likely heard or seen the ads from carmakers who are advertising incredible deals to drum up sales.
“This is a good time to buy a car. I know that sounds crazy, but if you do it in a responsible manner, you’re going to get a deal right now,” O’Donnell said.
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