The National Automobile Dealers Association (NADA) joined a group of organizations in forwarding correspondence to President Donald Trump seeking clarity regarding vehicle sales being considered an essential service amid COVID-19.
NADA leaders united with the American Truck Dealers (ATD), the National Association of Minority Automobile Dealers (NAMAD), the American International Automobile Dealers Association (AIADA), and the Alliance for Automotive Innovation in seeking the clarification.
“Most consumers are concerned about their jobs, families, and health and will not be in the market for new or used vehicles for weeks or months, so the overall effect of this additional capacity will be limited,” the groups wrote. “However, for the many people who may need a replacement vehicle or a new vehicle for any number of reasons, the additional sales activity surely would be defined as vital or essential to them.”
The organizations said 12.55 million vehicles were scrapped last year because they wore out, or it was not economical for them to be repaired while approximately 9.4 million of those vehicles were replaced with a new or used vehicle. In 2018, 1.24 million vehicles were determined by insurance companies to be total losses as a result of an accident, flooding, or other total loss events. Individual consumers and businesses typically use their insurance proceeds to purchase a substitute vehicle within a few days.
“Additionally, many of the nation’s essential workers, including first responders, medical workers, grocery store employees, delivery drivers, and others providing similar services may suddenly find that they need a more reliable way to get to these critical jobs,” the letter concluded. “In short, there are thousands of scenarios that would prompt the urgent need for a car, SUV, or truck – now more than ever.”