New vehicle demand has accelerated across the country amid the coronavirus crisis, driven by stay-at-home measures that have compelled many Americans to delay their auto purchasing plans, robust federal relief, and a growing shift to car ownership due to concerns about catching COVID-19 while using mass transit and ride-sharing, according to regional trends in TechnoMetrica’s Auto Demand Index, a monthly measure of Americans’ intent to acquire new vehicles in the next six months. The Northeast is leading the surge in new vehicle purchase intent, likely reflecting robust pent-up demand created by stringent restrictions imposed by states in the region, as well as the success these measures have had on containing the coronavirus spread, which has boosted consumer confidence. Meanwhile, demand is easing in regions that have generally been less restrictive and have reopened at a faster pace, such as the South and West. Thus, as states continue to ease restrictions and more Americans feel safe to venture out to dealerships, we anticipate a significant rebound in auto sales in the near term, driven largely by strong Northeastern demand.
