New Car or Used Car: What Should I Buy During this Pandemic?
Pandemic or not, you will need a car. However, the corona virus has also brought along an economic crisis that is compelling companies to lay off employees without much notice. This is creating a dilemma around buying cars and naturally the sales have slumped around the entire country. Yet, experts believe that the pandemic is indeed the right time to make an investment in a vehicle as manufacturers and dealerships are lining their cars with offers that are bringing down the net price. Even without an active job, Consumer Reports say that buying a car now is not a bad idea at all.
But, what car to buy? New or used? Getting convinced is not the hard part as we all know that the zero percent interest rate is the right time to draw a loan. But both new and used cars have their specific financial pros and cons and, as customers, you must weigh both with a fine comb before coming to any decision.
The case for new cars
As per Consumer Reports, American manufacturers currently have 4 months’ worth of vehicles in their inventory as opposed to their preferred 2. That means, they are loaded with unsold cars and want to clear out as early as possible to get the revenue machine churning. Hence, you will see offers like zero percent 84-month financing on a new Silverado or a $3,250 cashback on a Jeep Grand Cherokee. Just like any other business, carmakers are trying to gain consumer confidence back and encourage people to buy vehicles even in these uncertain times.
The case against new cars
Despite the available offers, new cars do not come cheap. The base model of a Silverado starts at around $28,000 and can go up to $56,000 for the highest trim. The story is similar with Jeep Grand Cherokee. The average price of this new SUV hovers somewhere around $35,000. Even with an extended loan and all that cashback, you still have to pay something north of $30,000 and this is an investment you might not want to make during the ongoing health and economic crisis. No country is currently sure as to how long this coronavirus pandemic will stay. That means factories and companies will be forced to work with a reduced workforce and hiring may not start anytime soon.
The case for used cars
If new cars are not seeming that much enticing anymore, then it is time you turn to the other thriving market in the auto industry. Typical used cars in Greer, SC, cost almost 50% less than their newer counterparts and carry similar offers in good dealerships. For instance, expect a 2014 Silverado to cost you below $15,000 – a model that received a perfect reliability score from J.D. Power. Similarly, expect a similar drop in prices in Grand Cherokee or any other equivalent SUV that you might like to own.
Plus, banks have tightened their grip on issuing credits. With lessons from 2008 available, they are not sanctioning loans of high amounts to any random customer. The lower net price of used cars removes this hassle almost immediately. Or, you can always approach used car lots in Greer, SC, with buy here pay here where credit scores and financial histories do not decide your loan approval. Both ways, be it car buying or financing, used cars are clearly making a stronger case than the new ones.
The case against used cars
On the flip side, used cars suffer from the risk of repair costs. Customers stay apprehensive of purchasing used vehicles as they carry a history and may often require servicing, costing anywhere between $3,000 to $7,000. But this drawback is avoidable. If you buy one of the best cheap cars for sale from a quality dealership, you might not have to worry about repair expenses for 2 years at least given the warranties that the dealers offer on their vehicles. Then again, good dealerships will provide you with the complete history of the used car that you are buying. And you can always run the VIN to check its details. The processing can be online and the pandemic will have no role to play.
The choice is obvious
Used cars stand out as the clear winners. Both in terms of pricing and financing, used cars place a much better deal on the table. So, search for the “best affordable car dealerships near me” and pick a quality used car. Plan your financing options to match the aforementioned new car loan offers and do not miss out on any deal.
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