Even in normal times, buying, selling, owning and driving a car each brings its own joys, challenges, and questions. During a global health crisis like the Coronavirus outbreak, there are new challenges in car buying. Here are some tips, advice, and deals for car buying and ownership during this difficult time.
Can I buy a car right now?
That will depend on where you live and the current state of government mandates. Retail sales were recently reclassified as an essential business so car dealerships are beginning to reopen their showrooms. Call ahead to check the status of the dealership, and remain flexible as this is an ever-changing situation. Also understand that these businesses are complying with government orders. See how coronavirus is affecting car dealerships.
Is now a good time to buy a car?
It depends on your needs. If you are looking for a traditional sedan or perhaps a 2019 model closeout, yes. The best incentives are on older in-stock vehicles, particularly models that weren’t selling well before the lockdown. Current 2020 year models that were popular before will continue to be in short supply, a situation exacerbated by the 2-month auto production shutdown.
Among these short supply vehicles are current model year pickup trucks and SUVs, particularly new 2- or 3-row crossovers. Some of the biggest rebates and incentives like 0-percent financing can be found on 2019 pickup trucks. Some hot brands with low inventories include Subaru and Kia as well as luxury makes like Mercedes-Benz and BMW.
Buying a used car may be the way to go. Dealers have plenty of used and certified pre-owned inventory. In April, wholesale prices on used vehicles experienced a considerable drop, so there may be far more room to negotiate a good deal on a used car than a short supply new one. Don’t expect to see widespread incentives across the industry this Memorial Day Weekend, it will take months for inventories to return to normal levels.
What’s the best way to buy a new car amid the outbreak?
If you need to buy a car amid the coronavirus pandemic, there’s a good chance you still can without setting foot on a dealer’s lot. A byproduct of the shutdown is that more dealers are embracing digital tools to enable sales without having to show up in person. You can do the bulk of your research online here at KBB.com. Read this before signing on the dotted line, and here are specific actions to take while shopping for a car amid the COVID-19 pandemic.
Kelley Blue Book has launched At Home Services, which enables you to see a video walkaround of a car, have a car brought to your home to test-drive, and have home delivery if you choose to purchase.
What are dealerships doing to keep safe?
Automobile dealers have moved quickly to ensure all aspects of their business, including buying, selling and servicing vehicles, is as safe and stress-free as possible amid the coronavirus. Safety measures have included everything from disinfecting doorknobs, showrooms – and of course the cars in them – to specialized training in best practices for employees. Don’t take offense if the sales associate doesn’t shake hands. They shouldn’t, and neither should you at this time of social distancing.
Other measures dealerships are taking include a higher reliance on digital tools, and even bringing cars to potential buyers for test drives. See more measures dealerships are taking to ensure the safety of customers and employees.
What’s the best way to buy a used car?
Similar to new-car dealerships, used-car operators have to obey government mandates amid the COVID-19 pandemic. And again, while most remain open, call ahead to confirm the dealership’s status, and be sure to read our 10 Steps to Buying a Used Car.
Should I defer my car payment?
Between the loss of jobs, reduced paychecks, prioritizing other needs, and overall economic uncertainty, many people are weighing the decision to defer car payments amid the coronavirus. Moreover, some automakers’ finance departments and lenders are offering flexibility and the ability to pay later instead of now. Is this a good idea? See our guide on car payment deferral amid COVID-19.
What to do if you can’t make a car payment
With jobs and paychecks coming to a screeching halt for more and more people every day, many worry about making their car payment. Whether that’s a monthly payment on a lease or a loan, it’s likely hundreds of dollars – a substantial sum that’s often the second-biggest financial commitment after rent or a home mortgage.
If there’s any consolation amid the coronavirus crisis, it’s that there seems to be an air of understanding about the toll this is taking on our lives, finances included. Just in the past few days, many automakers have rolled out payment support programs.
If you think you will miss a payment, it’s better to take action sooner vs. later. The first thing you should do is contact your lender or your lending institution and advise them of your situation. Many banks and credit unions have already set up coronavirus relief programs and assistance lines. So rather than simply miss a payment, contact your lender as soon as possible to figure out a path forward.
This will be in the best interest of not just you, but also the lending institution. The reality is, they don’t want the extra work that comes with filing notices and the possibility of repossessing a vehicle. Communication is key here, as is staying ahead of potential trouble.
Is it better to buy or lease in this environment?
As usual, that will depend on your situation, coronavirus, or not. We advise not just the usual considerations of how many miles you plan to drive in a year and whether you want the ability to modify your car, but also think about your future given the pandemic.
Here’s our guide on whether to buy or lease during the coronavirus pandemic. Be sure to weigh these other buy/lease considerations, too. And here’s a look at how the coronavirus is impacting car sales. If you’re still debating whether to buy or lease in general, read this. And if you decide to lease, read this.
Are financing conditions favorable?
In general, yes. With the Federal Reserve cutting interest rates and the government taking action to stave off a recession, loans are becoming cheaper and thus lending more favorable. Also, due to the uncertainty in general and some dealerships having to suspend sales, there should be plenty of incentives to be had. Be sure to read our 6 Steps to Financing a Car.
What are the best car deals right now?
Automakers are rolling out new incentive programs in response to the coronavirus. Brands are offering measures that range from 0 percent financing to deferred payments and even assurance programs that promise to make car payments in the event of a job loss. See what brands are offering car buyers right here.
Can I still get my car serviced?
The answer is yes. All car repair facilities – including service departments at car dealerships – have been deemed “essential.” If work must be done on your vehicle, we advise calling ahead, confirming the shop is open and making an appointment. Here’s how COVID-19 is affecting dealers service centers.
Also, be sure to read our tips on car maintenance during the coronavirus crisis.
How long can my car sit undriven?
Millions of Americans who observe stay-at-home orders mean fewer miles on our cars. A car that sits can spell trouble for when you need it most. Here’s advice for how to keep your car in shape during the coronavirus.
Are gas stations still open?
Yes. While many businesses are shut because they are deemed “nonessential,” gas stations don’t fall into that category. In fact, gas stations are among the most “essential” operators, as they provide the fuel we need for cars, our primary mode of transportation in America.
It’s also a great time to fill up. Amid the economic fallout and lower crude prices that have resulted amid the COVID-19 pandemic, gasoline prices have fallen. According to AAA, today’s national average for a gallon is just under $2.13. That’s down nearly 50 cents a gallon from a year ago. Here’s more about plummeting gas prices. Also be sure to read our tips on staying safe amid the coronavirus when refueling.
How might the Coronavirus affect my car insurance?
With fewer miles being driven as more people stay at home, you might be wondering if that will affect your car insurance. Here are some answers to that question.
Will there be a Cash for Clunkers type of program in 2020?
No formal announcement has been made by the federal government as of early April for a car-buying program like “Cash for Clunkers.” But at least one automaker is hoping such an incentive will happen. Ford has said it would like to see another government stimulus plan for the auto industry. The Car Allowance Rebate System, informally known as “Cash for Clunkers,” took place in the summer of 2009 and offered car owners thousands of dollars toward a new vehicle if they traded in a less fuel-efficient model.
Is the DMV still open?
As with so many other answers these days, it depends. Each state’s Department of Motor Vehicles must follow government ordinances. Some close due to emergency ordinances, while others remain open but by appointment only. Amid the COVID-19 pandemic, here’s what to know about the DMV before you go.
Can I rent or lease a car during the lockdown?
Yes. The government has deemed the renting and leasing of cars as an “essential” business amid the COVID-19 pandemic. Here’s more information about renting and leasing a vehicle amid the coronavirus.
Is it safe to buy a car made in a country affected by COVID-19?
Yes. If you’re hesitant about buying a car made in one of the countries hit hard by the coronavirus – such as China, South Korea, Italy, or here in the United States — you needn’t fret.
At present, very few vehicles on sale in the United States come from China. The most popular is the Buick Envision SUV. More models come from South Korea, the home countries of Hyundai and Kia. Cars from hard-hit Italy include Alfa Romeos, and others such as the Fiat 500X and Jeep Renegade crossover SUVs.
Then there is here in the United States, where most major automakers have factories. While more and more automakers idle their U.S. plants amid the pandemic, some note that workers were exposed to the virus before they went into quarantine. Still, this should not be cause for alarm if you are shopping for a new car.
Even if you were to buy one of these vehicles right after it was imported to the United States or came off a U.S. assembly line, the vehicle should be safe.
According to the National Institutes of Health (NIH), the coronavirus can live for hours or up to a few days on a surface. But it takes much longer than that for a vehicle to reach a dealer lot. In fact, it can be weeks between the time the automobile leaves the assembly line, ships to America, and travels to a dealer’s lot.
What’s the best way to sell my car right now?
Selling a car at any time can be stressful, and it will be even more so amid a pandemic. Patience is key here, as is understanding. Face-to-face transactions will be more difficult as potential buyers practice social distancing, and some dealerships that would buy your car could be closed by government mandate.
Still, you can sell your car amid this crisis. Here are tips on how to sell your car during the coronavirus.
How should I clean my car amid the coronavirus?
With multiple surfaces that we touch constantly – think your steering wheel, audio dials, climate controls, and the like – there are numerous places in a car that can harbor pathogens including the COVID-19 virus. Now more than ever it is vital to keep the inside of your car not just clean but disinfected. One of the most-effective and least-expensive ways is with isopropyl alcohol (60 percent or higher). To clean and disinfect, wipe the surface with a microfiber towel sopped with alcohol. Products you’ll want to avoid using inside your car include bleach or hydrogen peroxide. While both can kill the coronavirus germs, their harshness can damage materials like vinyl and plastic commonly used in cars. For more tips on what and what not to do, click here.
New Programs and Incentives
As the coronavirus spreads, more and more automakers are offering incentives, payment deferrals and other financial assistance. Below are a few examples. For a full list of incentives, payment assistance and other programs, click here.
News to Know
BMW ends European delivery for North American customers
Another victim of the global COVID-19 pandemic is the end of European delivery of BMW vehicles by North American customers. Automotive News reports that the company has axed the program due to travel concerns and the declining volume of its non-SUV offerings in its U.S. sales.
If you’re a U.S. healthcare worker, Mazda wants to thank you by giving a free oil change and enhanced cleaning of your vehicle. Notably, you don’t have to be a Mazda owner to receive this offer. The complimentary service was set to run through May 4 but Mazda has extended the offer through June 1, 2020. Read more about Mazda’s free oil change for healthcare workers.
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Porsche Extends Warranties
Porsche is the latest automaker to extend warranty coverage on its vehicles to help consumers who can’t or are reluctant to scheduled covered service during the lockdown. This automatic 3-month extension is being offered to customers in the U.S. and worldwide.
Any warranty set to expire between March and May 2020 will have three months added. For instance, coverage ending May 15 will be honored until August 15.
“We wish to help our customers as we work our way through this unparalleled situation
together,” said Klaus Zellmer, President, and CEO of Porsche Cars North America, Inc.
(PCNA). “The purpose of a warranty is peace of mind, which is something we are happy
to provide at a time when it is needed most.”
In addition, Porsche Financial Services is also offering to extend current deals held by Porsche vehicle lessees by six months. That added four months the previous 2-month extensions offered by the automaker. Customers must submit lease extension requests by May 31.
Volkswagen adds additional payment protection
Volkswagen of American is extending the payment protection provisions of its Community Driven Promise program to up to six months. Buyers of VW vehicles who finance through Volkswagen Credit will have their payments of up to $750 paid for as long as six months if they have lost employment as a result of COVID-19.
The program, which is not available in New York, extends to buyers who are receiving unemployment on a job loss that occurs within 90 days of purchase. Also to be eligible, you must have full-time employment for 12 weeks prior to losing your job. The payment protection offer expires a year from the date of purchases. The payment deferral protection offer now extends to June 1.
Highly-qualified buyers can delay their first payment up to 180 days as well as get 0-percent financing for up to 72 months. That offers expires June 30. Certified Pre-Owned buyers who qualify are also eligible for a 0-percent rate for up to 60 months through VW Credit. This offer ends June 30, 2020.
Kia extends warranty program
Kia is extending the coverage of warranties set to expire soon, following a similar move as its corporate cousin Hyundai. Like Hyundai, Kia boasts an exceptional new-car warranty that covers 5 years/60,00 miles bumper to bumper and 10 years/100,000 miles for the powertrain. Kia’s warranty extension applies to those that would otherwise expire in March through May. They are now extended until June 30, 2020.
10 items to keep in your car at all times
If we’re learning anything amid this pandemic, it’s proper preparation. That extends to your car. While many of us are preparing our homes and pantries for the unknown, don’t forget about your car. Here are 10 items you should always have in your vehicle.
