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Ferdinand Dudenhöffer, a market analyst from the University of St. Gallen (Switzerland) is predicting that we could see discounts for cars up to 50% because of coronavirus.

I think this is incredibly wishful thinking but it's interesting to think about given how much the auto industry has been affected by the virus.

According to market analyst Ferdinand Dudenhöffer of the University of St. Gallen (Switzerland), dealers are dealing with large stocks of cars that they are unable to sell. This is partly because in a number of cases dealers are obliged to purchase cars, while it is unclear whether and when they will find buyers. In addition, bankruptcies threaten numerous car companies.

Need for security
"The car market in Germany will experience a massive slump this year," said Dudenhöffer. "It can only be mitigated with smart offers that do not put the customer at great risk." According to him, an option is a car subscription, whereby customers, due to the uncertain economic prospects, only have to commit to one provider for six months. According to him, buyers do not so much need bargains, but security.

Nevertheless, large discounts are inevitable for the car industry. Models of which a huge stock has been built up and which only take up space for dealers, are, according to Dudenhöffer auto expert, a lot on offer. "Discounts of up to 50 percent are not inconceivable," the expert told the German weekly Focus. Although the Dutch car market is different from the German one, it cannot be otherwise that the consequences of the corona crisis will also lead to lower prices here.

Production is now going down. Approximately 4.7 million cars were still produced in Germany last year. Dudenhöffer expects it to be 3.8 million this year.
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