How Good Of A Deal Can You Get On A Used Car During COVID 19?
The global pandemic has brought the global economy to a standstill. This has not only impacted the finances of families and individuals but entire industries. One sector that analysts expect to be deeply affected by the coming recession is the auto industry.
There are many reasons for this. First, people are driving less, and some are even finding alternatives to cars to get around. Second, the 30 million-plus people who have already lost their jobs due to the crisis will be unable to buy a new car for months, if not years. Finally, automakers have been forced to shut down their production, and this means fewer new cars are available for sale.
But if you are fortunate enough to have a job still and are considering getting a used car, how good of a deal can you get? Well, it turns out you can get some excellent deals and here are some reasons why.
Dealers Are Feeling the Pain
The lockdowns across the country have hit dealers hard – very hard. While some of these dealers are large, national businesses, most are locally owned and have even been family-owned businesses for generations. These businesses are feeling the pain as both vehicle sales, and revenue from their maintenance operations have plummeted.
As such, dealers have begun to get desperate when it comes to selling their inventory. Keep in mind, their business is to turn cars into cash, and if there are no buyers, they are unable to do this.
Dealers are getting so antsy that some are offering sweet deals on new and used cars. Offers can include free oil changes, buy now, pay later offers, and even discounts on extended warranty programs. As you can see, it is a buyer’s market, and for buyers who do their research, they can use this to their advantage.
Lenders are Getting Desperate
Have you ever paid cash for a car? While some people do, most relying on credit to buy vehicles and the shutdowns mean that banks and finance companies are writing fewer loans than ever before.
What does this mean for you? For starters, interest rates are about as low as they have ever been. If you still have a job and a good credit score, the cost of paying for your new to you car can be almost nothing.
Beyond this, you might even be able to take advantage of special offers that put off your first car payment for six months to a year. This is money in your pocket at a time of economic uncertainty from a most unlikely source, the banks.
You do want to check with your bank to see if you can get approved for a loan before you walk onto a dealers’ lot. Doing so will give you power in the negotiation because you will not only know that you can get a loan, but you will have confirmation of what the terms will be.
If you are not sure where to turn, then you might want to contact your local credit union as the current situation has hit their business and some might be desperate for creditworthy borrowers.
How to Negotiate
While the basics of negotiating for a used car remain the same, the various lockdowns have added some wrinkles to the process. One of these is the restricted business hours that most car dealers face.
As such, one of the best ways to prepare for looking for a used car is to either check your local dealer’s website or call their office. Doing so will help you determine which cars they currently have on their lot, the mileage and service history, as well as the sales price.
You will also want to check out options for an online extended car warranty quote for a used car. This is one way that dealers can make some extra money on the sale, and by getting a quote before you walk onto the lot, you can position yourself to get the best coverage at the best price.
When you do call, the dealer to check their hours and their inventory set an appointment as this will guarantee that someone will be there to talk to you. Also, use the business restrictions to your advantage by not getting trapped in the sales manager’s office and by leaning on the dealer’s willingness to get a deal, any deal, done by driving a hard bargain.
If the dealer doesn’t budge, then use the lockdown as an excuse to leave. Either they will cave, or you can move onto the next dealer who will be even more desperate to sell you a car.