Words of Advice:

"We have it totally under control. It's one person coming from China. It's going to be just fine." -- Donald Trump, 1/22/2020

“We will not see diseases like the coronavirus come here..and isn't it refreshing when contrasting it with the awful presidency of President Obama."
-- Trump Press Secretary Kayleigh McEnany, 2/25/20

"I don't take responsibility for anything." --Donald Trump, 3/13/20

"If Something Seems To Be Too Good To Be True, It's Best To Shoot It, Just In Case." -- Fiona Glenanne

"Flying the Airplane is More Important than Radioing Your Plight to a Person on the Ground Who is Incapable of Understanding or Doing Anything About It." -- Unknown

"There seems to be almost no problem that Congress cannot, by diligent efforts and careful legislative drafting, make ten times worse." -- Me

"What the hell is an `Aluminum Falcon'?" -- Emperor Palpatine

"Eck!" -- George the Cat

Sunday, May 24, 2020

Why the Stadiums Have Full Parking Lots

Rental car companies are parking their cars there.
Given the “precipitous drop in air travel” over the last few months, rental car companies at Philadelphia International Airport found themselves with more cars on their hands than their airport lots could handle, Calter said.

“In an effort to address this, rental cars are being stored at off-site locations, including the Wells Fargo Center parking lots," she said.
The same thing is happening in California:
Throughout the U.S., rental car companies have parked hundreds of thousands of unused cars as COVID-19 runs its methodical course, sickening Americans and grinding the economy to a halt. Particularly decimated is the travel industry. People aren’t traveling through airports, so no one is renting cars.

Seen from above, places such as Dodger Stadium and Santa Anita racetrack look as if it’s a big day at the yard, when, in fact, the stands are empty.
...
New cars sales are down too, creating a glut of vehicles that Americans suddenly have little desire to purchase as they confront the coronavirus crisis.

That excess has led to choked L.A.-area ports. For example, Toyota Logistics Services at the Port of Long Beach is normally a beehive of activity as new cars are off-loaded from ships, parked and prepped at the yard, and sent off quickly to dealerships throughout the Southland. Now, Toyota Motor Corp. has leased additional storage space at a sports venue in California.
If Hertz truly tanks, there may be a huge glut of used cars on the market.

6 comments:

Old NFO said...

Used car prices are going to tank big time!

dinthebeast said...

The delivery company I drove for used to buy their trucks used from Hertz-Penske at good prices because running a massive fleet, they had the data on when the trucks would start to require more maintenance to run, and they just offloaded them at that mileage instead.
If one were to have ambitions toward getting into the delivery business, which may actually boom over the pandemic, buying out a failing Hertz-Penske fleet might be an affordable option if they are actually folding.
We found the trucks to be well maintained and got a lot of miles out of them for our money.

-Doug in Sugar Pine

CenterPuke88 said...
This comment has been removed by the author.
CenterPuke88 said...

SMB (Sorry, My Bad). Just saw a story suggesting Hertz WILL dump most of the fleet...disregard previous post...deleting it now, you want a good deal on fleet equipped vehicles, here they come!

Marc said...

I read elsewhere their total debt was 17 Billion. I'm sure they were skating on razor thin margins servicing that, and with the drop off of business there was no cushion to absorb the shock. Creditors who gave the asset backed loans will not want to keep the assets, so I'd expect a flood of used cars and trucks to hit the market fairly fast after the bankruptcy is done. New car sales will tank too, from the combination of cheap used cars and the continuing increase in unemployment numbers.

Nebris said...

I wonder just how many of these companies have been leverage to the hilt by the hedge funds that bought them and now are crashing because of that?