SHOPSMART AUTOS – CUSTOMER REPORT – August 7, 2020
SHOPSMART AUTOS – CUSTOMER REPORT – August 7, 2020 How the Coronavirus Is Impacting Car Deals Auto sales in March and April fell dramatically. Though sales saw a significant recovery in each of the ensuing months, they’re still below pre-virus forecasts. Shelter-in-place and stay-at-home declarations made it more challenging to sell new cars in most areas of the country. You can take advantage of several generous financing deals, and there will likely be many more in the coming months. Taking advantage of a car deal can save you thousands of dollars off the cost of the vehicle, or dramatically reduce the amount of interest you have to pay on your car loan. Many carmakers offered to defer payments for as many as 180 days, and a few still are offering deferred payment programs. A loan payment deferral program allows buyers to put off making the first payments on their loans, with no late fees and no negative impact on their credit. Not all buyers will qualify for a deferral, as the lender will consider their credit score and other information in their loan applications. Unless the interest rate on the loan is zero percent, you shouldn’t take the deferral unless you really need to, as interest will accrue on the loan and you’ll pay more in the long run. Even if the interest rate is zero percent, your car will continue to depreciate during the deferral, and you could find yourself upside-down on your car loan.If you need a first-payment deferral to afford a new car, now is probably not the right time for you to buy or lease. Unless you’re 100% sure you’ll be able to make your payments when the deferral period ends, you can set yourself up for serious financial pain and long-term damage to your credit score.
Hyundai and its luxury arm Genesis went a step further than many automakers. They brought back their job-loss protection program, which will pay for as many as six payments for buyers who lose their job due to the coronavirus pandemic. Volkswagen has announced a similar program for new car buyers. Ford has rolled out a buy-back program if you lose your job within a year of purchasing your vehicle. The Ford program is not available in all states.
With possible plant closures in the event of further spikes in coronavirus cases, deals will likely be hit-and-miss going forward. There might be excellent deals on some models and shortages of others. It won’t just depend on where the car is produced – it will also depend on the sources of all of its parts.
As the COVID-19 pandemic kept customers out of showrooms, automakers and dealers changed their showroom-based business models to entice buyers and lessees, while adhering to strict public health mandates. The fundamentals of smart car buying remain the same. You want to cast a wide net by seeking prices from multiple dealerships, negotiate the car’s price, avoid budget-busting extras, and take advantage of purchase and lease incentives offered by automakers. You can find the best low-interest financing and cash-back deals on our new car deals page. Our lease deals page shows offers from carmakers with low monthly payments and small amounts due at signing. If you’re in the market for a certified pre-owned car, our used car deals page can show you the financing offers available. The U.S. News Best Price Program connects buyers and lease customers with local dealers offering pre negotiated pricing and can help you find dealers that offer online buying or home delivery. Car buyers save an average of more than $3,000 when they use the program.
Tags: 2019 Subaru Forester Touring, 2020 BMW iX3, 2020 Chevrolet Suburban, 2020 dodge charger, 2020 EQC, 2020 Ford Super Duty, 2020 Honda Pilot, 2020 Mercedes-Benz EQC, Toyota Car, Volvo Car
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