Why now may be the right time to buy a car

Yahoo Finance's Rick Newman joins Myles Udland, Akiko Fujita, and Andy Serwer to discuss why now may be the right time to buy a car.

Video Transcript

AKIKO FUJITA: And Rick, very quickly, you know, we've always talked about Tesla being more of, sort of, a supply issue. The demand has always been there. What does disclosure, or what has disclosure done in terms of Tesla being able to meet demand?

And you talk about all these other car companies reopening their factories. Where does this put Tesla?

RICK NEWMAN: I don't think we really know yet. So, car sales in April were down by almost 50% compared with what they were a year ago. So clearly, a lot of demand is drying up.

But at the same time, you have buyers who are not really that worried about losing their jobs, or they're-- they have enough money, who are saying, wow, this might be a great time to buy a car. And they are going out and buying, so dealerships are not getting new product, and they're selling what they have.

And they're actually becoming really low on inventory. They don't have many cars to sell at some dealerships, so as the automakers crank it back up, we will start to figure out, are people back-- going back and buying cars the way they used to, or are sales going to just fall off a cliff and stay there?

AKIKO FUJITA: We'll see where this fight goes. But to your point, it would certainly be difficult for Tesla to just up and leave, given just the massive footprint they have in California right now.

We are off for a quick break, but we'll be right back.