Day: May 1, 2021

How the pandemic led to a rental car crisis just as Americans are ready to bust loose

By Betty C. Morrow 1 week ago

“Usually car rental is an afterthought,” said Benjamin Tuttle, a computer-assisted design programmer from Minnesota, who was taken aback when Hertz quoted him a price of $240 per day to rent a sedan to tour Colorado’s Rocky Mountain National Park.

The industry backfire illustrates that the post-pandemic recovery, while strong, may not be entirely smooth. As more retail businesses reopen, many report trouble hiring enough workers to cope with surging demand. Manufacturers complain that raw materials are scarce – a semiconductor shortage that hobbled auto production is making it hard for companies like Avis to restock.

“The covid shock was unlike anything we have experienced before. As we go into the recovery phase, we’re going to see friction and disruption in the normal flow of economic activity,” said Kathy Bostjancic, chief U.S. financial economist for Oxford Economics. “It’s going to be a bit erratic and disrupted, but the pace of

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This Is the Most Popular Car in Your State, According to Data

By Betty C. Morrow 1 week ago

This Is the Most Popular Car in Your State, According to Data

Buying a new car can be a stressful endeavor. You want something reliable, but don’t want to sacrifice style completely, all while sticking to a budget you can afford. There is no shortage of options, and odds are there are plenty of choices that fit the bill of what you’re looking for in a vehicle. But if your knowledge of the automotive market is minimal, which is the case for most of us, finding the right car can feel overwhelming. To help it feel less so, we consulted a new study by Insurance broker Insurify that determined the most popular car in each U.S. state. After all, if a large number of people drive a particular make or model, there must be a reason why.

The study’s researchers analyzed 2.9 million car insurance applications filed

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EchoPark Used-Car Dealerships Gain Momentum In Q1 For Sonic Automotive

By Betty C. Morrow 1 week ago

A more ambitious expansion of EchoPark dealerships — a network of used-car-only stores owned by new-car dealership chain Sonic Automotive — is off to a promising start, company executives said.

“We sold almost 20,000 cars,” in the first quarter at EchoPark dealerships, an increase of more than 40% vs. a year ago, said Sonic CEO David Smith, in a phone interview April 29, following up on Sonic’s first-quarter earnings announcement.

The increase is largely because Sonic is adding more EchoPark stores, but Smith said some new EchoPark locations are also reaching operating profits faster than expected. Newly added markets include Phoenix, Birmingham, Ala., and Charleston, S.C.

EchoPark revenues were $507.1 million for the quarter, up 53% vs. a year ago. Pre-tax earnings for EchoPark were $2 million, down 4%.

Sonic, based in Charlotte, N.C., opened its first EchoPark location in late 2014.

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