Car Deals: A Silver Lining During Pandemic

Although many people are still out of work or have reduced pay, the deals on new or used cars continue to get better. If it makes sense for you financially, you could really take advantage of new or used car deals right now. Not only are interest rates low on many vehicles, but due to the virus putting so many things on hold, dealers are generally overstocked. When the supply of any good is higher than the demand for that good, the product dips in value. In other words, many car dealers are overstocked and are willing to offer great deals on used and new vehicles. This post will go over the advantages people will see when looking at used and new cars.

How Could Anyone Afford It?

Before we get into some of the offerings car dealers have made so far, we should discuss how people could afford a new or used car right now. As you may have seen in the news, the unemployment numbers in the US have skyrocketed. And although many people have signed up for and receive unemployment benefits, it does not provide the future financial security that a job might.

On top of that, many people have or are still waiting on their stimulus check, which could help them finance a new or used vehicle. However, many people have not received one, and word of a second round of checks is too far away. Well, that is where car dealerships have stepped in and offered a number of ways people can secure great deals.

Deferred Payments

As stated before, many people are uncertain about their future finances. This makes it difficult for someone to finance a car, even with a great deal, because they are not sure they can make payments. Well, in this case, many dealerships have offered deferred payments for up to three months. In other words, if you purchased a vehicle in May, you would not make your first payment until August.

Low To No Interest Rate

Another tactic used by car dealers right now is offering low to no financing rate on new cars. One of the biggest concerns people have with buying a new car is the dreaded monthly payment. However, with so many cars in stock, dealerships want to offer people low rates and low payments deals on new cars. The low payments apply to both purchasing and leasing a new vehicle.

Low Prices On Used Cars

You don’t need a degree in economics to understand supply and demand. Normally, a dealership will hold a two month supply of cars in their lot, however reports have shown that the supply is greater now. Well, when the supply is high and the demand is low, the price of used cars goes down. Right now, used car prices are low, so if you planned on purchasing, look today. Even if you feel uncertain about your finances, used car dealers want to offer you a great deal.

Auto Insurance

Lastly, when financing a vehicle, your lender usually requests you take out a full coverage auto insurance policy. Most lenders make you take out the policy for the duration of your financing, which poses problems for people. However, car insurance companies have been offering refunds and other deals to help their customers out. You may be able to take advantage of these offerings, but not every company is doing the same thing. For a list of the top companies offering something to their customers, click here