Is the Covid-19 Pandemic a Good Time to Buy a Car?
There are many reasons you might be contemplating buying a new car right now.
Examples include the fact that your car may be older than you’d like, perhaps it doesn’t fit your family’s needs anymore, or maybe you were involved in a car accident and you need to replace the vehicle that was damaged.
Maybe you’d simply like to have a new Lincoln Continental because it’s always been your dream car.
Whatever your reasons, we’re in the midst of the covid-19 pandemic, so is it a good time to make a purchase?
The following are some things to think about when it comes to buying a car right now.
Are There Any Good Deals?
A big reason you might be weighing whether or not to buy a car at this particular time is if you want to find a deal.
For example, there are extremely low interest rates, which will bring your costs down. You might even be able to find 0% interest rates.
A lot of car manufacturers are advertising plans for payment flexibility when you buy a new car right now, and there are car companies that are also offering payment plans to help current owners if something happens to their job.
It could be that you find a good deal because of something manufacturers are pushing, or something offered by individual dealerships. It’s been a tough time financially for everyone, so there may be ways to use this to your advantage to get the price of a new car down.
Carmakers know they need to entice people to buy right now.
Are You Allowed to Buy a Car Right Now?
While many states are starting to gradually lift their stay-at-home restrictions imposed during the start of the covid-19 outbreak, not all are.
However, if you’re in the market for a new car, there’s good news.
Car sales are allowed in all 50 states right now.
With that being said, that doesn’t mean you can just walk into the dealership and take a test drive like you might have before all of this started.
If you want to test-drive vehicles before making a decision, you should talk to someone at the dealership and see if there are restrictions on doing so.
If you’re going to buy a luxury car, you may be able to convince the dealership to let you do an at-home test drive, but not all do that.
Carvana is a company that will drop a car off to your home, however, and now their delivery drivers wipe down the interiors and then step away while you take a test drive.
CarMax announced the launch of its curbside pickup option at some of its locations.
CarMax has also focused on letting car buyers and sellers know they’re making efforts to prevent the spread of covid-19.
For example, they say they are increasing cleaning in all of their locations, and they’re sanitizing high-touch areas.
According to CarMax, they’re also working with their employees to train them on how to prevent the spread of respiratory diseases, and they are implementing social distancing protocols.
Could a Recent Car Order Be Delayed?
If you recently ordered the car, there is the potential that your delivery might be delayed because there are a lot of car companies and manufacturers that have temporarily closed during the coronavirus pandemic, or have pared down their employees and their level of production.
There were also factory closures in China, which could impact the delivery of new cars.
Who Should Wait to Buy a New Car?
Even though you can technically buy a new car right now and there may be good deals and low interest rates, does that mean now is right for everyone? Probably not.
You need to think about your level of job security and certainty.
Are you in an industry that could see significant effects of coronavirus, including layoffs? Is your income secure enough for you to finance a new vehicle?
At the beginning of the pandemic and the shutdowns, the primary affected industries were hospitality and travel, but now more than 30 million Americans have applied for unemployment benefits over the past few weeks.
Even if you don’t outright lose your job, you could see a reduction in your hours or perhaps a pay cut.
You’ll have to weigh this uncertainty with the potential of getting a good deal on a new vehicle right now and decide what’s right for you.