THE IMPACT OF CORONA ON CAR BUSINESS
The previously nourishing economy has practically sunk into new lows overnight due to the spreading of Covid-19. Many industries including the auto lending and financing, have been dealt major blows by the novel Coronavirus. Due to the high economic uncertainty, many individuals are putting off the risk of making major expenses in the wake of this pandemic. Consumer confidence is at its lowest and layoffs are on the rise. The current strain of the pandemic on the economy has seen many would-be car buyers postpone on making the purchases.
J.D Power, an analytics firm has recently revised its prediction that car sales in this year will reach 16.8 million to a minimum 14 million car sales in the U.S. Although the slow down in car sales is inevitable, carmakers and sellers have come up with new servicing tools to cushion and attract more car buyers amidst this Covid-19 pandemic. Below is a compilation of the best paths car buyers can use to secure auto financing in 2020.
Coronavirus Car Payment Programs and Plans
To the relief of consumers looking to buy a vehicle amidst this pandemic, most of the major car manufacturers have rolled out favorable car payment plans. These plans have been devised to cushion individuals whose income has been terminated or is threatened by the ongoing health crisis. On the other hand, car manufactures are keen to avoid the double-whammy of increasing car repossessions and plunging new car sales. Despite the history of car sales recovering in time, car makers cannot wait for tides to turn because of the current high economic uncertainty. Below are some of the most comprehensive and aggressive car payment plans that major carmakers have devised in favor of new car buyers.
- GM is currently offering certain models with 0 percent financing for 84 months. The deal gets even better as car buyers can defer payments for as much as 120 days. All GM customers are eligible for a 3GB in-car Wi-Fi package.
- Ford is also offering to cover the first three months of payments in a six-month payment relief plan. Payments can be deferred for 90 days and the purchase of new cars is available online.
- For ‘well-qualified customers’ making their payments through special APR, Nissan is offering a 90-day payment deferral plan to new customers. The carmaker is offering a 0 percent financing deal on select models.
- Hyundai said it will cover a total of six-month payment for car buyers who lose their jobs or income due to the ongoing Covid-19 pandemic. The offer is available for customers leasing or buying new cars.
- Lexus and Toyota will allow its customers to defer payments for 90 days although the interests will continue to accrue during the deferral period.
- Customers looking to buy Honda cars will get as much as $1000 off while Acura buyers can expect $500 off.
- Subaru customers have no payment deferral option but can expect a 0 percent financing plan.
Coronavirus to Cause Delayed Deliveries
The global supply chain has suffered great disruption caused by the pandemic. New car buyers should expect a delay in the delivery of their purchased cars. Supplier factory closures in countries like China could see even the yet to close manufacturers experience delays in operations.
Are Car Dealers Currently Open?
Even in localities with strictest policies, car dealerships are not being asked to close. But some car dealers may opt to voluntarily close shop due to the risk of employee infection. Vehicle leasing and rentals, as well as car service and parts businesses, were included in the list of essential services exempted from closure orders. Car sales can still be operated under strict health precautions.
Does Buying A New Or Used Car Put the Buyer at Risk of Infection?
No. There have been no reports on the significant risk of infection or exposure arising from the purchase of new cars or products. Coronaviruses are easily rendered harmless with the use of common household disinfectants and have only been reported to survive on surfaces for only a couple of days. This is a mere risk considering the time it takes for cars to arrive at showrooms.
With many dealerships adapting to the coronavirus situation by offering contactless car buying and favorable financing options, now would be a great time to purchase a new vehicle. Not that you won’t face some hurdles along the way, but the current storm has created great deals and offers such as home delivery and competitive car loans.