Where is Pent-Up Demand Building?

[spartansaver]

I'm trying to think of industries where once all of this ends won't just see a one-day benefit and go back to normal. For example a barbershop will see a one-day benefit as everyone goes back to get a haircut and then normalize. It's not like I will get five haircuts because I skipped five haircuts during quarantine. 

[Spekulatius]

Non Covid-19 related medical issues. Dentists work, hip replacement, pacemakers. Everything that a wait a little, but shouldn’t.

[bizaro86]

I would say things that wear out over time but aren't strict necessities so are currently being deferred.

 

Things like upgrades of phones/cars are likely way down right now, but that demand is probably still there and will be filled at some point.

 

As a personal example - we have 2008 SUV. We bought it new at the end of 2008 in a great recession sale. We were planning to buy a new one this year, but decided to hold off. So we spent some money on deferred maintenance (new tires, spark plugs, some suspension work) and will keep the old one for another couple of years. So our SUV purchase was deferred and the demand over the next few years will be higher.

 

I suspect people are making similar decisions for electronics, appliances, and luxury goods right now.

[Gamecock-YT]

divorce lawyers

newborn baby items

[fareastwarriors]

I would say things that wear out over time but aren't strict necessities so are currently being deferred.

 

Things like upgrades of phones/cars are likely way down right now, but that demand is probably still there and will be filled at some point.

 

As a personal example - we have 2008 SUV. We bought it new at the end of 2008 in a great recession sale. We were planning to buy a new one this year, but decided to hold off. So we spent some money on deferred maintenance (new tires, spark plugs, some suspension work) and will keep the old one for another couple of years. So our SUV purchase was deferred and the demand over the next few years will be higher.

 

I suspect people are making similar decisions for electronics, appliances, and luxury goods right now.

 

how about an EV?

[bizaro86]

I would say things that wear out over time but aren't strict necessities so are currently being deferred.

 

Things like upgrades of phones/cars are likely way down right now, but that demand is probably still there and will be filled at some point.

 

As a personal example - we have 2008 SUV. We bought it new at the end of 2008 in a great recession sale. We were planning to buy a new one this year, but decided to hold off. So we spent some money on deferred maintenance (new tires, spark plugs, some suspension work) and will keep the old one for another couple of years. So our SUV purchase was deferred and the demand over the next few years will be higher.

 

I suspect people are making similar decisions for electronics, appliances, and luxury goods right now.

 

how about an EV?

 

We wouldn't have bought an EV, as we want (and currently own) a 7 seater SUV. The Tesla Model X is $120k CAD for the 7 seater, and the top end Toyota Highlander is only $50k CAD. $70k buys a lot of gas, even assuming prices return to much higher levels. Not that those are identical vehicles, of course.

 

When we replace our sedan (a 2018) in 7-12 years I think it's very likely we'll get an EV.

[Gregmal]

On the subject of cars, is there any incentive for anyone to buy a car right now? Between record number of leases coming due and the current economic situation, it seems like a no brainer to wait 6-12 months if you're looking.

[LC]

On the subject of cars, is there any incentive for anyone to buy a car right now? Between record number of leases coming due and the current economic situation, it seems like a no brainer to wait 6-12 months if you're looking.

 

I am not looking but I heard prices are dirt cheap right now as dealers are trying to move anything off their lot.

 

Also, apparently a fire near the Ft Lauderdale airport destroyed a giant fleet of rental cars. Now, I'm not saying it was for the insurance payout or anything like that, but I'm also not not saying that either. 

[KJP]

Perhaps single-family housing, driven by new family formation.  People are spending alot of time at home with their significant others, which probably doesn't hurt family formation.  In the meantime, housing sales have ground to a halt, and I assume single-family construction is slowing down (or perhaps stopping) in many areas of the country. 

 

Of course, buyers need money to buy a house.

 

[fareastwarriors]

I would say things that wear out over time but aren't strict necessities so are currently being deferred.

 

Things like upgrades of phones/cars are likely way down right now, but that demand is probably still there and will be filled at some point.

 

As a personal example - we have 2008 SUV. We bought it new at the end of 2008 in a great recession sale. We were planning to buy a new one this year, but decided to hold off. So we spent some money on deferred maintenance (new tires, spark plugs, some suspension work) and will keep the old one for another couple of years. So our SUV purchase was deferred and the demand over the next few years will be higher.

 

I suspect people are making similar decisions for electronics, appliances, and luxury goods right now.

 

how about an EV?

 

We wouldn't have bought an EV, as we want (and currently own) a 7 seater SUV. The Tesla Model X is $120k CAD for the 7 seater, and the top end Toyota Highlander is only $50k CAD. $70k buys a lot of gas, even assuming prices return to much higher levels. Not that those are identical vehicles, of course.

 

When we replace our sedan (a 2018) in 7-12 years I think it's very likely we'll get an EV.

 

I see. It sounds an EV is not right option for you right now. I'm sure there will be deals to be had for a SUV over the coming months! Good luck.

 

 

Personally speaking, I'm never going back to ICE.