Among the many businesses that the COVID-19 pandemic forced into shuttering this past winter and spring were car dealerships. And though these dealerships attempted to provide some service by offering virtual consultations and delivering new vehicles to consumers that purchased them, sales still plummeted.
Once dealerships opened back up in the spring and into summer, they began running great deals to entice consumers to buy or lease a new vehicle. Sales are still expected to struggle until the economic recovery can truly start to begin across the nation, but the fact is that if you’re in the market for a new vehicle right now – and you’re able to afford one – it’s a great time to do it. And while dealers cutting prices is one way to save with a new car, banks are also offering great financing rates to boot.
However, we should caution you – if you’re in the market for a new car, you might not want to wait. While dealers have the supply right now, parts and materials shortages are expected leading into 2021 due to the pandemic. In other words – those great deals may not last for much longer, making it all the more important to act in the near-term to save the most money. Here’s a look at how to do it:
Finance Through Your Bank
If you’re leasing a vehicle, you’ll likely be at the mercy of whatever bank the lender is working with. But if you’re purchasing the car outright, make sure you shop around for the best rate. Like we said in the intro, now is a great time to buy a new car because interest rates are so low. Be sure to check with the bank or credit union you belong to and see what they can offer on an auto loan rate. Like any sort of financing, the better your credit score, the lower the interest rate you’ll qualify for.
Be Flexible
If you prefer to lease, make sure you pay attention to the terms of the lease. Usually, the longer the lease agreement, the lower your monthly payment. On this note, it can make sense to sign a lease for 36 months rather than 24 months if a lesser monthly payment is your main motivation. Don’t be afraid to ask you dealer about an even longer leasing term. Some will offer 42-month leases for an even cheaper monthly payment. The only thing we caution about a longer term lease is that you may be on the hook for more end of term fees for what’s consider beyond normal “wear and tear.”
Be Nice
Last but not least, no matter whether you’re working with a sales professional in person or virtually – be nice. So many people try to play hardball with sales professionals, and often times it can come to bite them in the end. Be nice and be professional with your dealer. Doing so can work much better for you than being curt, threatening or demanding.
