Over the last few months, many of us have faced financial insecurity. But, as businesses get back to operating at near-normal capacity, and with more calls to get back to the office, could now be a good time to invest in a new car?
You’ll need to check your finances before committing to any new outgoings, but here are some factors that could make your mind up.
Nearing the end of a quarter
Traditionally, at the end of each quarter, dealers tend to be keen on hitting their quarterly sales targets. This often means that you’re more likely to get a good deal. September is the next end of a quarter coming up, so now might not be a bad time to start looking around.
Consider second-hand
It’s been suggested that used car prices have fallen around 2-5% during the lockdown, however, as measures begin to ease, the demand for second-hand cars is increasing. This could start to increase the price of second-hand cars. Suggesting now is a good time to act. Second-hand dealerships have seen the biggest decrease in price, however, there are plenty of independent selling sites to find some great bargains on too.
Think about demand
Dealerships in England were closed for around ten weeks during the lockdown, and in that time the UK’s GDP fell by a record 20.4%bringing the economy to a standstill. Whilst no sector was left unscathed, it’s forecast that many people who were waiting for cars to be delivered back in March may not be able to afford their new wheels.
This could lead to less of a demand and therefore lower prices. However, use this time wisely to think about what you actually want from a car. Traditionally convertibles are more desirable in the summer, so there might be bargains to be had come winter. Whereas, if you’re in the market for a four-by-four you may have to wait until next spring.
Your new-norm
If your daily routine has changed because of COVID, it might be worth considering how much you need a car moving forward. With around a fifth of us claiming we’ll use our cars less after lockdown, now could be the time to invest in an eco-friendly car.
Switching your gas-guzzling motor for an electric one will not only see your fuel costs decrease, but your car tax will too. Maybe you’ve come to the realization that you only require a car for one-off journeys, in which case maybe hiring a car for those times might be more prudent.