Due to COVID-19 and the economic uncertainty, many people may be hesitant to purchase cars at this time. However, now more than ever it is a great time to get a car. Here are some things to consider.
1. COVID-19 Has Caused Some Car Companies to Reduce Prices
Since March, many businesses including dealerships and rental car companies have taken a financial hit. Many people have been doing their best to stay inside, avoid public places, and save money because these times are so unpredictable. Due to these reasons, it has caused many rental companies to encounter financial difficulties causing them to sell off a large portion of their fleets at discounted rates.
2. Many Dealerships Are Offering 0% Financing or Low APRs
As a tactic to lure more customers in, many dealerships are offering cashback deals as well at 0% financing and low APRs. Depending on what you are looking for, this may be a great deal to take advantage of to help you get your dream car. However, the one thing to be wary of is that even though there may be incentives, it could cause your loan to be longer. If this is the case, then it may not be in your best interest to partake in this deal with a car dealership. You may want to consider options for auto loans.
3. Lower Monthly Payments
In addition to the incentives, many dealerships are doing their best to make buying a car seem more “doable” by providing their customers with lower monthly payments at this time. Many customers are hesitant to take on a big expense especially with the economy being uncertain at this time. However, with the lowered monthly payments, it will make it easier to keep up with month by month.
4. Gas Prices Are At An All-Time Low
With more people working out of their homes, it means fewer people are needing to purchase gas as often for their commutes to work. With the reduced demand, it has caused gas prices to decrease, which is great news if you plan on purchasing a new vehicle.
5. People are Purchasing Cars Online
To avoid going out in public and putting themselves and others at risk, many consumers are looking to the internet to purchase cars online. Online car sales are becoming more popular because it allows you to learn more about the car on your own without having to go through a salesperson at a dealership, and many people feel it is much more safe and convenient.
6. Insurance Rates Are Low
As people are traveling less, it is giving more people the opportunity to negotiate their insurance rates. Car insurance can get expensive, so if there is a way to reduce the price by using fewer miles per month, you should take advantage of it!
As we work together to get through these ever changing times, let us know how we can help! We have a number of loans and services available to help you get the car you need. Please give us a call at 800-835-3400 to speak with one of our Member Advisors, or visit us online at caminofcu.org for more information. We are here to help you on your financial journey.