Should you buy or lease a car?
Let's take a look at the current car market from the average buyer's perspective. When the pandemic started, most car manufacturers stopped production since unsold cars started piling on dealers' lots. The car shows and new car releases were canceled, and even the local cruise nights were delayed. Due to shrinking demand, fuel prices were down since fewer people used the cars for business and traveling. In most major cities, traffic jams were gone, and interstates were again just empty stretches of roads connecting two counties. But, is this apocalyptic scenario the perfect time for you to be thinking about a new car? As a matter of fact, it could be, and here is why.
At the moment of writing, car manufacturers are just between introducing the 2021 models and getting rid of the unsold 2020 cars. This is the perfect time to shop since you can get a fantastic deal on an outgoing model or place an order for upcoming cars or trucks. Since the spring of 2020, all car companies have introduced very competent initiatives, 0% financing, and cash-back deals. Depending on the brand and model, you can save from a few hundred to several thousand dollars on a new car.
But that is not all. Since the car companies know that jobs are not secure in pandemic times, and without that, customers cannot maintain car payments, there are numerous job-loss protection programs. Ford introduced the "Ford Promise" program, which offers a $15,000 benefit if the buyer experiences a job loss caused by a pandemic. Most manufacturers have 3 to 6 months no-payment deals for all models in their lineup. Of course, if you want to pay in full and even pay in cash, the dealers will certainly be more flexible, and you could get an even better deal. Recognizing the importance of essential workers, especially in the field of health care, several brands are offering $2,500 discounts for people working in that industry.
However, some cars are in high demand even now, and customers are ready to pay a premium to get them. Models like the 2021 Ford Bronco are selling for a price significantly over the MSRP.
So, if you are confident enough that the COVID-19 crisis will blow-off next year and your job is secure, there is no reason why you shouldn't take advantage of incredible deals currently on offer.
Is leasing now a good idea?
In times of crisis, people tend to concentrate on essentials and minimize costs. Rationalizing is the name of the game in 2020, and leasing a new car doesn't look like a particularly good idea. Yes, leasing a vehicle comes with less commitment and lower monthly payments, but that is it. In the long term, it will cost you more; you will need to give a significant amount of money when signing the deal, and your yearly mileage will be limited. Not to mention that when you lease a vehicle, the financial institution is the actual owner.
The car leasing is luxury since you basically renting a vehicle with minimal commitments. However, as with any luxury, it costs money, and if you are a rational individual with limited funds, you will find that lease will not fit your plans. Not to mention that lease deals are hard to get out of and that most of the initiatives we talked about in the first part of the article are not available.
The availability of new vehicles is something that all car shoppers need to consider. Most of the major car companies stopped the production for several weeks due to the COVID-19 lockdown. This affected the number of new cars available for purchase. The import of vehicles made oversees is also affected since transport lines were interrupted and cargo ships delayed. Some factories weren't able to complete the assembly since parts and components were not delivered on time.
At the moment, most luxury 2021 models that feature new and innovative tech are delayed or in short supply. Cars like the 2021 Corvette, Genesis, Chevrolet Equinox are either delayed or not available. On the other hand, most of the ordinary, everyday models are available and can be seen on the dealer's lots.
The potential availability problem so far has affected the used-car market, and in some areas, used-car prices are up since new models are not there, and customers need vehicles ASAP. The demand is obviously there, and we are sure that manufacturers will find a way to satisfy it.
Is it safe to go car shopping during a pandemic?
We know that a lot of customers are concerned about their own safety, and that visit to the dealership could be considered a risk not to mention time-consuming. Of course, you can instantly get your local dealership pricing and incentives by searching your area thru the form below. Additionally, to get the best price, select multiple dealerships in your area and you will be able to leverage them against each other to better negotiate. All before ever having to step into a dealership.
Get the best price in your local area and see what local incentives are offered, submit your zip code/info on SaveOnMyAuto.com