Best Time To Upgrade Your Car
Dealers and manufacturers are doing everything they can to sell cars, which is good news for you as a consumer. Times have been tough for millions of Americans since the coronavirus pandemic shut down much of the economy. But for those who have the financial resources, it’s the right time to upgrade your car to a used car.
Although auto sales saw a drastic plunge during the shutdowns, they have picked back up. Automakers are aware that consumer confidence is low and so low-interest and zero-percent financing deals are plentiful, along with cash-back offers and attractive lease terms.
To further lure consumers, many car manufacturers are pushing deferred payment plans that can delay the first payment on a new car for as many as two or three months. At Car Factory, we’re offering no payment schemes for 120 days, so check out our website and get your hands on a new or used car at the best deals possible.
Car sales, while much stronger than they have been in months, are volatile, which could impact incentives deeper into the summer. Eric Lyman, senior vice president of ALS, TrueCar’s analytical arm says, “Automakers are likely committed to incentives they planned for through June, however, if demand continues to remain strong in June and inventory doesn’t start getting replenished until mid-July, we could see automakers pull back on incentives in July.”
“Demand for used cars has been high for the last two months, as concern over the economy has pushed consumers to try and get more car for their money. We saw wholesale prices dip, but since consumer demand stayed strong, wholesale prices are back up, so there aren’t as many deals to be had as a result.” Lyman concludes.
While new solutions are quickly gaining traction in this new environment, car dealers across the country are also resorting to simple blocking-and-tackling efforts that include a new emphasis on cleanliness and social distancing. Even in many areas where consumers are advised to stay home, dealers are open to performing service, which is frequently considered to be an ‘essential service’.
Carmakers are trying to do their part to ward off a catastrophic fall in car sales, services and parts revenue by creating aggressive new sales incentive programs. Lyman of TrueCar says the idea behind all of the deals and special offers is to increase consumer confidence to buy cars during a time of economic uncertainty, often by engineering lower monthly payments with low or zero interest rates and by lengthening loan terms beyond the typical 36-60 months.
He also points out that long-term loans come with their own challenges. For someone who can keep a vehicle for seven or eight years, a longer-term loan at zero percent can be beneficial. But consumers who switch vehicles every few years might be better off with a lease.
In general, our advice would be to take caution in taking out long-term loans, though in the right situation they can represent big savings over time. Buyers should be aware they might ultimately pay more depending on the annual interest rate, and no one wants to owe more on a car that’s worth less than the remainder of the loan.
We also recommend that you research cars and various option packages online before contacting a dealership. For any inquiries, you may call us at 786-406-6234 or you may visit our website and browse through our brand new or used pre-certified vehicles along with some great car deals.
We like to provide our customers with the best quality! That’s why we have chosen the Supreme Tires & Auto Service as our partner! Years of experience at your service ensure the best results at the best price.
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