Can You Get a Great Deal on a Used or New Car?
COVID-19 has not taken any prisoners. There is not an industry that has not been affected in some way. The auto industry has been especially hit hard. It is a supply and demand problem. There is an unprecedented amount of supply because people are not buying cars.
The concern of all of this supply is the potential used car price collapse. Auctions, where dealers would take cars and buy and sell, are reportedly at a standstill. Used car sales fell 64% in the last week of March. We might be looking at unprecedented levels of supply of cars for sale on the market. So the question is, can you get a great deal on a new or used car? Well, it depends...... Let's start with used cars. It all depends on whether or not you are trading in a vehicle. You have to keep in mind that your current vehicle has taken a massive hit in value. A car dealer is not going to give you what the market says it is worth. Remember, they are not going to do a deal where they don't come out better on the other side. For them, they want to move inventory in exchange for a little profit and a car that they can sell and make a more substantial profit in the new normal. Without a trade-in, now you are talking. You will have to work at it. However, I am sure some dealers want to move inventory. Keep in mind, the longer those cars stay on the lot, the more money a car dealer pays. What about a new car? Car dealers can put irresistible deals together because of low-interest rates—for instance, no payments for 90 days coupled with 0% for 84 months financing. Don't forget you are probably paying the full price for that new car. Leasing gets even trickier. It becomes all about the payment. You have to look at the payment AND the final negotiated price. Most consumers won't do that. My advice? Do your research and don't get into a hurry. I guess that prices will fall as this drags on. Also, don't be unreasonable. Car dealers are not going to give away a car. Arguing over another $500 off is not worth anyone's energy and peace of mind.