By Alex McCuaig

A silver lining

Car sales hit speed bump due to COVID-19 pandemic

May 12, 2020 | 4:29 PM

MEDICINE HAT, AB – Auto sales have hit a speed bump in the form of the COVID-19 which has hit the sector right at the start of its traditional peak season. But Medicine Hat dealers say while the impacts of the pandemic has been a drag on sales, there is a silver lining.

“COVID-19 has actually put a lot of pressure on new car manufacturers to incentivize new care sales,” said Brandon Sanchioni, general manager of Medicine Hat Nissan. “When you’re talking buying times, and if this is the right time to buy – this is the right time to buy.”

The combination of low financing and generous cash rebates are two of the biggest incentives manufacturers are offering, said Sanchioni.

But the incentives are a direct result of the hit on the sector which has seen roughly a 30 per cent hit to sales.

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Ken Magnus, general sales manager for Murray Chevrolet Cadillac, says the hit to the business from COVID-19 has a real impact.

“We’ve had to layoff some people,” said Magnus. “Which is unfortunate in these tough times. But it has also has changed the way we do business today. The safety of our customers and the safety of our staff is our number one priority. So we’re doing things differently than we did before the pandemic hit.”

That includes cleaning and social distancing protocols when it comes to test driving new vehicles and have used ones assessed as well as servicing.

But there are signs of a local rebound in sales, said Magnus.

“In the last couple of weeks, definitely, we can see things starting to turn around a bit.”