Claiming that this is the best time to buy a car might sound ridiculous--a time when the world is still grappling with the Covid-19 pandemic. But interestingly, Google searches for “Is now a good time to buy a car” have significantly increased.
While some car manufacturers and dealerships have had to shut down operations, there’s been surging demand for new cars--especially after people have gotten used to the “new normal.” According to research, car-buying is almost back to pre-COVID-19 levels. Here’s why this is the best time to buy a car.
- Many Attractive Deals by Manufacturers
In response to the business slowdown caused by the pandemic, some manufacturers have come up with car deals that seem too good to be true. For instance, Ford and Hyundai have introduced flexible repayment programs for car loans, deferring them for up to six months. Auto manufacturers have also slashed the prices of new cars to meet sale quotas. But the best deals are being offered for older car models.
- Better Financing Terms
The economic downturn caused by the pandemic has made financiers give borrowers better terms. Some title loan places have lowered their lending rates to attract more car buyers. So, if you were planning to purchase a car through a loan, this is the best time to do so. The low interest rates can save you thousands of dollars on a pre-owned or a new car.
- Low Fuel Prices
As the Covid-19 pandemic reduced mobility around the world, the demand for Crude Petroleum dropped significantly. In the United States, fuel consumption dropped by more than 10%. The falling demand, high supply, and diminishing storage caused a sudden but significant drop in gas prices.
When the pandemic was at its worst, gas prices dropped more than a dollar per gallon, the lowest they’ve been since 2002. And while the prices have gone back up, they still aren’t what they used to be. So, take advantage of the low gas prices and buy a car. They will help offset the initial cost of your new car.
- Insurance Payment Reliefs and Discounts
Car insurers realize that this is a difficult time. Many of their policyholders have reduced their movements as they still work from home. Others can’t afford to pay for their plans. They’ve come up with payment relief plans, premium discounts, and now offer grace periods to cushion their customers.
Some insurance companies have gone to the extent of partially refunding premiums and halting the cancellation of policies by customers who find it hard to continue paying for their plans. If insuring your car is one of the things holding you back from buying a car, this is your golden opportunity.
New cars are still in short supply due to a combination of factors. Chip suppliers had shut down their factories last year to protect their workers, and there’s also a sudden increase of first-time car buyers. Many of them previously relied on public transportation, but due to health concerns related to the pandemic, they are opting to buy a car. Take advantage of the great car deals, flexible repayment plans, and insurance reliefs and get yourself that dream car you’ve always wanted.