With a good chunk of the world and the majority of the country on lockdown, your plans of getting a new car may have not pushed through. However, just because you're part of the millions of people and families locked down right now, you might still be able to get that car, and the deal might be much better than you think.
A lot of people have been asking the question, "Is now a good time to buy a car?", and the answer might surprise you. Due to the threat of COVID-19 car sales have reached a low that hasn't been seen in over a decade. Because of this, you might have seen more than a couple of car advertisements online while scrolling the internet.
Because of this drop in sales, cars are selling for prices that are significantly lower than what they were a couple of months ago. In this article, we take a look at how much the market has changed, what it means for you, and why buying a car during COVID-19 may actually be a good idea.
Just how much have prices gone down?
Not all companies and manufacturers have cut their prices, but a couple of them have. At first glance, these price drops might not seem too exciting. And that's because they aren't. At least not yet. That being said, you still might be able to have an easier time bringing the window price down at the dealership or finding a very nice deal for your trade-in.
While prices haven't seen a dramatic drop that's making everyone want to buy a new car, there's one aspect that is slightly overlooked that's the real reason buying a car right now might be a good idea. The financing options that you might find right now are some of the best you might encounter in your life.
How has the lockdown changed financing offers?
A lot of companies and manufacturers right now are offering great financing deals for people looking to buy a new car. There have been reports of a wide range of companies offering lower rate financing options or even deferred payments. These deals are significantly better than ones you might have found last year, but it's important to note that these deals aren't good enough for you to consider buying a car just for the sake of the deal. However, if you've been thinking or planning of buying a new car lately, this might be the right time to do it.
The incentive of those who were actually planning on buying a car right now is great. The lower rate options and other good deals can result in a bunch of savings in the long run. And aside from all of these good deals, buying a car right now might actually be a convenient experience.
How do I buy a car right now?
You might think the actual process of buying a car might be tough right now since most of the world is in lockdown, but that isn't the case. Buying a car right now can actually mean doing most of the work from the comfort of your home! Of course, you would still need to leave the house to test-drive the car, but that also means practicing proper social-distancing measures when doing it. Also, it's important to make sure that the dealership practices proper sanitation with their test-cars and with their drop-offs.
Once you've test-driven the car and made a final decision on which one to buy, everything can be done on the computer. With the magic of technology, you can now do all the financing, insurance, and even the signing of all the final paperwork online. And once all that's done, all you have to do is wait for your new car to be delivered right to you!
The bottom line
The deals that you might find right now are definitely going to be a bit better than the ones offered to you a couple of months ago, but these deals aren't good enough for you to buy a new car just because of the savings. However, for those who were already planning on getting a new car, the saving you'll get from pushing through with the deal might be hard to resist.
And on top of that, you can do it all from the comfort of your own home. So if you've been considering getting a new car while everyone's on lockdown, you might have the right idea. Just make sure to practice all the proper social distancing and sanitation measures, and when this whole thing's over you might find yourself driving around in the car of your dreams!
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Zaheer is the Founder and CEO of CarClarity, Australia’s first true car loan platform with an easy online application process. Zaheer has over 14 years of experience in senior management and executive positions within the financial space. He founded CarClarity in 2019 to address the unfair gap and lack of transparency he observed in the car financing market, where traditional lenders were commonly placing profit margins over customer outcomes. Zaheer is also an avid car enthusiast who has owned 10 cars in as many years. His passion for cars combined with his industry knowledge provides a unique insight into the car buying and financing space.
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