Buying a car during a global pandemic is not for everyone but for some buyers in West Michigan, it might just be a perfect time. Looking at how the coronavirus has impacted car buying experience and knowing what things to look out for can help you know what to expect when you’re shopping and help you decide if you should buy a car during COVID 19.
Changes In Shopping
With the governor now including some vehicle sales as critical infrastructure under “Section 9(i) For purposes of this order, critical infrastructure workers also include: Workers at motor vehicle dealerships who are necessary to facilitate remote and electronic sales or leases, or to deliver motor vehicles to customers, provided that showrooms remain closed to in-person traffic.”, those who are in need of a vehicle in the greater Grand Rapids area are able to buy one again. It will just look a little different than people have experienced in the past when purchasing a car.
Whether purchasing a new or used vehicle, showrooms opened by appointment only on May 21, giving car shoppers the ability to once again kick tires and view vehicles in person. But beginning the process online and contacting dealerships through email, live chat or phone, can help narrow down the prospective vehicles to find the one you are serious about before taking the next step of making an appointment to talk to a salesperson and take a test drive if interested. While much of this process is not necessarily different with much of the beginning steps taking place strictly online, needing to set up an appointment with a salesman before stopping in means buyers need to be much more intentional on what vehicles they are serious about before venturing out to a dealership to see it in person.
During “normal” times, the average auto interest rate is typically between 4% and 5% but with the ongoing uncertainty of coronavirus and its impacts on the economy, auto manufacturers and lenders have started offering extremely low interest rates and even offering deferred payments to help people get into a vehicle today. Something to consider is just how much that lower interest rate could save you. Let’s say you get a 7-year, $35,000 loan with a 5% interest rate. Over the course of the seven year loan, you would end up paying approximately an additional $2300 in interest than if you had secured a similar loan with a three percent interest rate. Which, in the end, means you ultimately paid $2300 more on the vehicle than you needed to if your interest rate is higher than it has to be. Tip of the day: shop your interest rate and lender just as thoroughly as you do your vehicle because it could end up greatly impacting the bottom line price of your vehicle.
Know Your Bottom Line
With more happening behind the scenes virtually and not necessarily in person as car sales have traditionally been in the past, it is even more important than ever for car buyers to understand the bottom line of the deal that they are getting. Does that zero percent interest rate come with strings attached? Will an allowed deferment in payments still accrue interest, making the loan more costly in the end? Or will you sell the vehicle before you’ve paid off the balance of the loan and lost valuable equity you needed to sell it for a profit or to even break even?
In the end, whether you end up buying a new or used vehicle, it’s still important to trust the individual and dealership you are buying it from. In a time where so much has moved to online interaction and less face to face, it’s important to research reviews prior customers have left to see what they are saying about their dealings with the dealership in order to gain trust and feel confident you are not going to get taken advantage of and will be securing the best vehicle and deal you can for your hard-earned money.
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Check out our reviews online and buy with confidence!! Family Owned & Operated and with Financing Available, we stand behind our Vehicles and our Warranty so you can be assured your used Car, Truck, Van or SUV will be reliable! Broadmoor Motors is your local choice for Car Sales in the greater Hastings, Middleville, Caledonia, Grand Rapids, Wayland, Byron Center, Dorr, Hopkins, Kalamazoo, Battle Creek, Lansing, Lake Odesa, Kentwood, Holland, Zeeland, Moline, Cutlerville, Wyoming, Hudsonville, Grandville, Jenison, Hamilton, Ionia and Allegan. Ask about our BMG Protection Plan, this is not an aftermarket product! area. Let Broadmoor Motors save you time and money when buying your next quality, Pre-Owned Car, Family Minivan, All Wheel Drive SUV, Commercial Van or Work Truck. Whether you need to replace your current car, minivan, truck or SUV with a great used vehicle, we can help you out. Broadmoor Motors is here for all your Car Sales, and Auto Service needs in the Byron Center, Kentwood, Caledonia, Middleville, Hastings, greater Grand Rapids, Wayland, and Barry County area. With four locations to serve you in Middleville, Wayland, Hastings, and Caledonia, we’re here for all your Sales & Service needs. Give us a call at 616.698.9595 in Caledonia, 269.397.2400 in Wayland, 269.205.2613 in Middleville or 269.320.6304 in Hastings to see how we can get you back on the road!