With the world stressed out in dealing with the COVID-19 (coronavirus) outbreak, the challenge is to find the silver lining. That includes vehicle ownership. After all, life goes on. The need to drive to and from the grocery store, pharmacy and gas station still exists. Plus, we all know this will hopefully be over soon, and a sense of normalcy will return. Having that new vehicle in our garage will make it all that much better. But the first question that comes to mind becomes: Is this a good time to buy/lease a vehicle?
Should I buy or lease a car now?
The answer to that question depends on several personal questions you need to ask yourself. If you are elderly or have immune deficiency issues, then the answer is a flat no. There is no reason to go out of your house for anything other than the basics.
But for others, the answer requires plenty of online research and then acting on that homework. As always, KBB.com is the ultimate guide to finding a car that’s right for you. In light of the current situation, there are incentives offered by just about every manufacturer regardless of whether you buy or lease. For now, we believe the incentives will continue to escalate.
As for buying versus leasing, keep in mind your personal circumstances. If you drive a lot of miles, can make a big down payment and like the idea of hanging onto a car, then the least expensive route is outright ownership. However, if you only keep a car a few years, don’t put more than 10,000-15,000 miles per year on a car and are used to the idea of always having a monthly car payment, then leasing is a good choice. In this era of stay-at-home work, a short-term lease may be very attractive.
Shop at Home
With many of us restricted to home, it becomes the perfect time to do your homework. KBB.com offers the latest news and perspectives on the myriad of cars, trucks, and SUVs available today. There have never been more choices available to you. Within each vehicle choice, there are a huge number of sub-models, all customizable with a massive assortment of optional equipment.
Along with the basics of car buying, you can further personalize your vehicle with a host of dealer-installed “aftermarket” parts. These include better tires, wheels, spoilers, off-road suspensions, high-intensity lighting, high-performance brake packages, and assorted graphics. Some time spent researching can help make your vehicle one of a kind and add significantly to its utility and performance.
But along with a massive menu of vehicle types and options, your research will also help make you a smart shopper. That especially applies when selecting vehicle options. While an integrated vehicle navigation system was once a hugely popular option (accompanied by a hugely massive price tag), many buyers will opt for a vehicle equipped with Apple CarPlay or Android Auto, which serves the same purpose for thousands of dollars less.
Dealer Motivation
While some dealers appear to be functioning as normal, many are running on reduced schedules. More often than not the sales department is closed, and vehicle service the only ongoing operation. Efficient dealerships have hired work-at-home sales staff to post their complete vehicle inventory on their websites. These businesses not only have a parking lot full of new vehicles but also used cars they need to move.
Most dealers will gladly deliver any new vehicle to your home should you make a deal, free of charge. Used car sellers CarMax and Carvana also offer free home delivery, the sign off completed at the drive up with no office visit necessary.
While in the past vehicle purchases or leases required a “wet” signature where you physically had to go to the dealership to sign documents, that is not the case today. Extreme situations call for extreme measures and today services like DocuSign or Adobe Sign will allow you to sign off electronically and avoid all possible interpersonal contact.
Timing Is the Key
As has always been the case, vehicle deals get more prolific as we approach the end of the month. This March many dealers will be far off the mark from their assigned quotas so they will go to extremes to make you a deal. That’s good news for buyers and leasers. Find out more about incentives here.
Looking for the best deal going? Look for dealers with 2019 vehicles in stock. Looking at Expert Reviews, you can determine the difference between the 2019 model vehicle that has your attention and the current 2020 (or even 2021) model. It will be up to you to determine whether the cost savings on the 2019 outweighs the upgrades found on the 2020 model. But before you come to any decision, determine the best price the dealer will offer on the vehicle that interests you. Today, negotiating to get the best price has never been more beneficial to the buyer.
Getting a clean machine
For dealers offering free home delivery, some buyers may be concerned with the cleanliness of the new vehicle on acceptance. From our discussions with local dealership operators, we learned they’re spending extra time sanitizing each vehicle before delivery for your protection. Once you complete the transaction and the vehicle arrives, you should again sanitize it to the best of your abilities before driving. Check out these cleaning tips here.
Is it safe to buy an imported vehicle?
Today, we purchase vehicles made in a wide range of locations worldwide. While many Asian and European brands build cars in America, there are plenty of domestic and import makes that bring vehicles in from other countries. As we are all aware now, China first reported the outbreak of the COVID-19 virus, but the outbreak has been severe in South Korea and Japan. Italy has had a huge outbreak of the virus and other countries linked to the pandemic such as Germany, France, and England all build vehicles sold in the U.S.
So, can a buyer become infected from a vehicle from overseas that was potentially exposed? As noted, the virus can live on surfaces for up to a week. But it should be known that it usually takes three weeks or more to travel to the U.S. from overseas production facilities. For that reason alone, a live virus should not be present. According to the CDC, “In general, because of poor survivability of these coronaviruses on surfaces, there is likely low risk of spread from products or packaging that were shipped over a period of days or weeks at ambient temperatures.”
If my lease is ending, what should I do with my vehicle?
In this case, we suggest that you call the manufacturer through its toll-free line and tell them about your circumstances. This phone number should be in your leasing paperwork. In most cases, the manufacturer will extend the lease until the sales department at your dealership can complete the final transaction. Manufacturers have been particularly generous during this period.
For folks who have lost their jobs due to the coronavirus and you can prove hardship, manufacturers will give you a few months free from payments and push out the maturity end date of your contract an equal number of months. This only applies if you have a loan with the vehicle manufacturer’s finance group. Remember these manufacturers are looking to build long-term loyalty in this difficult time, and they know a little kindness goes a long way.
