People aren't driving as much as they accustomed to throughout the COVID-19 pandemic, but when you are in the marketplace for a new car, you may still acquire one. Based on where you reside and the restrictions imposed by local and state governments, though, the procedure could be a much more challenging than you might think.
Here's what you should bear in mind if you're considering a brand new car purchase in the near future.
Are Dealerships Open?
Many states and counties have stay-at-home or shelter-in-place orders that prevent dealerships from operating as always. Consequently, you might not get the chance to buy an automobile in person.
Keep in mind, though, that health and safety orders are fluid, and many states are starting to relax certain rules as conditions continue to evolve. So while your local dealerships might not be open now, they might be in the near future.
When the dealerships do open, you can expect them to practice social-distancing rules, such as solo test drives, home delivery and no-contact pickups. In some cases, test drives may not even be an option, which could be a deal breaker for many buyers.
If you are planning to buy a car in person, attempt to do all of your research online so that you can avoid spending additional time in the dealership than you need to.
If you cannot wait or you want to avoid heading out even with relaxed rules, it's possible to look for and purchase an automobile online. Carvana, for instance, enables you to browse used-vehicle inventory and complete you buy the car, including financing, from your kitchen table. A delivery driver brings the vehicle to you, and you will have seven days to return or exchange it.
There might be some expenses associated with delivery, however, if you don't live in certainly one of Carvana's local markets.
Trade-Ins Can Be Complicated
If you're planning to trade in your current car to reduce the price of the new one, the appraisal process may vary by dealer. Some, for instance, may steer clear of the most often used areas of your car, and also the interior might need to be cleaned before an installer takes it for any test-drive.
Call the local dealer in advance to discover what their appraisal process appears like to ensure that you feel safe.
Also, consider selling the automobile to a private party instead of trading it in in the dealership. While trade-ins are much easier, you could get hundreds or even thousands of dollars under should you sell the vehicle on your own. The process may take additional time, but if you're hurting for cash or just want to maximize your savings around the new car, a private-party sale could be a more sensible choice if you can complete the process with current restrictions in your mind.
Now Can be a Great time to Buy
Even if dealerships in your town are doing business as always, you will find likely fewer people in the market to purchase an automobile, especially considering over $ 30 million U.S. workers have filed unemployment claims because the coronavirus crisis began.
This lower demand implies that you'll not simply be more prone to find the model you want, however, you could also find salespeople more motivated to negotiate in your terms to meet sales goals.
Also, due to interest rate cuts through the Fed, you may be capable of getting a lower rate of interest in your auto loan. Note, however, that some lenders are tightening credit criteria to lower their exposure to risk, to require a higher credit rating, more cash along with a bigger down payment than would have been required before the pandemic began.
Also, remember that while there's not currently any model shortages, many domestic and international car manufacturers have turn off or reduced production, there may less inventory of new models later in the year. There will also likely be delays for that 2022 model year.
What to complete if Your Current Lease Is Expiring Soon
Depending around the dealership you leased your car from, you may have few different options together with your expiring lease. For example, you might be in a position to return the vehicle with the service department, or even the dealer might have someone pick up the car at your home.
In some instances, the dealer should extend your lease agreement for a few months to avoid potential problems with returning it.
Of course, you will also have the option to buy the vehicle at the end of the lease. If you're considering this, do your homework to find the worth of the vehicle and compare that with the sales price.
If the car may be worth more than exactly what the dealer is asking for, buying can be a wise decision. But when you'll wind up paying a lot more than exactly what the car may be worth, replacing it with a brand new lease or purchasing a used or new car may be a more sensible choice.
Consider Your Financial Situation Before you decide to Pull the Trigger
The current situation is complicated, and while you may be financially able to purchase a new car now, things can alter quickly. If you work in a business which may be impacted by the coronavirus crisis, it may be ideal to carry off on major purchases until things return to normal.
The thing you don't want to complete is to buy locked into a car loan payment, then lose your job. Some lenders are prepared to use you if you're experiencing financial hardship, but it's totally different from avoiding the problem to begin with.
Unless buying a new car right now is a necessity, think twice before you start the process.
Stay Safe While Purchasing a Car
The the easy way stay safe is to avoid purchasing a car unless absolutely necessary. But when you are in an urgent situation situation or you want to take advantage of low demand, here are a few steps you can take to stay safe during the pandemic:
- Do as much research online as possible to minimize in-person contact.
- Consider purchasing your vehicle online instead of in the dealership.
- Talk to local dealers to understand which measures they're taking to safeguard customers.
- Try to prevent dealers that limit your interactions using the vehicles, such as not allowing test drives.
- Shop around for automotive loans online prior to you heading to the dealership.
- Wear a face mask at the dealership and employ hand sanitizer or wash your hands after finding yourself in contact with others or touching surfaces.
Check Your credit rating Before You Buy
Unless you're buying a car outright with cash, you will need to finance the vehicle with an auto loan. The best interest rates are generally restricted to individuals with great credit, so check your credit score to see where you stand.
If your credit isn't in great shape and you have time before you decide to need to purchase a car, try to improve your credit rating before you begin the car-buying process. Otherwise, you may get a relatively high interest rate, or else you may not get approval at all. Making the effort to enhance your score could pay off when it is time to buy.