CPI, Cars, and Credit Conditions
Moody's Talks - Inside Economics
00:00
The Importance of Vehicle Demand in the Economy
I expected demand to come back more strongly than it has. But I am still expecting a slow, steady improvement in new vehicle sales here. There is some pent up demand for vehicles out there that have built up. Once the industry comes back and we get inevitably to an oversupply situation because it's a high fixed capital, fixed cost business; something has to give. We're not seeing a buildup of new vehicle inventory suddenly waiting to be sold. And we've got lots of people who can't afford just a new vehicle but increasingly even used vehicle sales are limited by supply. In the near term, you may actually be able to see this inflection point if we continue to see growth
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