Coronavirus and Car Deals
I've been getting a lot of questions regarding the Corona pandemic and whether now is a good time to buy a car or if you should wait. Short answer - wait if you don't absolutely need a new car right now, we will almost certainly see government subsidies and bigger incentives down the road. This pandemic looks like it will have long-lasting consequences on the economy and consumer spending.
When it comes to deals, it all comes down to supply and demand. Looking at what happened in China, car sales collapsed by up to 90%. I'm not sure if car sales in the US will fall by that much, but obviously there is going to be a big drop in demand. However, supplies are also going to take a big hit - as all major car manufacturers have decided to close down plants to help stop the spread of the virus.
What's happening right now - with the entire economy basically hitting the pause button - is unprecedented in modern times so nobody really knows what's in store. Theories range from a quick "V" shaped recovery, to one that's on par with the Great Depression of the 1920s. It even looks like the government is preparing to give each adult $1,000 to $2,000 per month to help through this emergency.
Some car manufacturers and lenders have already announced special payment deferral programs - Here's a summary:
- Hyundai and Genesis - reintroduced their Assurance Program, which gives up to 6 months of payment relief to owners who lose their jobs. They are also offering 90 days of payment deferral to all new car buyers
- Ford - 90 day payment deferrals for new car buyers
- Nissan - 90 day payment deferrals if you finance for 60+ months
- Toyota and Lexus - 90 day payment deferrals for new car buyers
- GM (Chevrolet, Buick, Cadillac, GMC) - 120 day payment deferrals for new car buyers. 0% for up to 84 months
If you're having trouble making payments right now, I urge you to call your lender. Lenders such as Wells Fargo and Ally have indicated they are willing to do payment deferrals.
Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid