The COVID-19 crisis is wreaking havoc on the global economy. In the United States alone, over 22 million people are now jobless. Businesses are scaling down or suspending operations or even shutting down altogether.
In other words, you would be crazy to even think of buying a car right now.
But here’s is the thing. Crazier things have happened and turned out to be great. Getting yourself a car during this time might just turn out to be a savvy decision.
Continue reading for a couple of good reasons to buy a new car as the coronavirus crisis rages on.
But first off:
How IS COVID-19 Affecting the Automotive Industry?
The U.S. auto industry is feeling the pinch, no doubt.
Manufacturing operations have come to a standstill. In a bid to stop the transmission of the virus, stay home and social distancing measures have been enforced, which effectively means assembly workers cannot perform their duties.
However, service centers and auto parts businesses remain open in most states. The Department of Homeland Security categorized them as essential infrastructure, thus exempting them from closure orders.
What about dealerships? These are not essential service providers, so most have closed their doors. However, they’re not closed for business.
A good number of dealerships have online operations and are able to take orders remotely. So, yes, buying a car during coronavirus is possible.
And here’s why you should:
Car Prices Are Only Going One Way: Down
You don’t have to be an economist to know that a thriving economy actually makes luxury stuff, especially big-ticket items like automobiles and houses, more expensive. And when the economy is slowing down or spiraling into a crisis, prices tend to fall because supply outstrips demand.
The COVID-19 crisis is pushing car prices lower. Whether you’re looking for a used car or something brand new, you’re far more likely to get a better deal than a person who bought the same car before the crisis.
Bear in mind that during an economic crisis things can change pretty quickly, mostly depending on the actions law and policymakers take. Just because car prices are falling right now doesn’t mean they will stay down for a long while. Demand for cars may increase in the coming months, causing prices to shoot up again.
If you’ve been shopping around and see that there’s a good deal on the ride you want, snap it up and make the saving. There’s no telling if the prices will be the same or lower next month.
You’ve Got More Negotiating Power
Car manufacturers and auto dealerships have bills to pay. They need to make sales to pay these bills and stay in business.
Right now, dealerships aren’t making as many sales as they normally do. So, when you contact your dealership and say you want to purchase a car, the salespeople won’t want to let you go without a deal.
If you’ve got great negotiation skills, you’re now in a better position to haggle over the price of a new car and bring it down even more.
You’ve Got Good Reasons to Buy a New Car During the COVID-19 Crisis
Not everyone’s finances have been affected by COVID-19. If you’re among these lucky people, nothing stops you from spending your money, especially on a ride. There are good reasons to buy a new car during this crisis.
Keep tabs on our blog for more tips on car shopping and motoring.