These new car deals are dazzling, but how long will they last?
If you’ve seen the ads on TV or on Facebook it’s stunning: 0% financing and no payments for up to 6 months?
Can this be real?
It is, and it is spectacular. There are a lot of cars on dealers lots right now. Auto sales in the US had been slowing and the global pandemic didn’t help. So many dealers are feeling the pinch and willing to pick up a few of your payments in addition to manufacturer incentives, offer more for your trade-in and complete a purchase on your terms, such as delivering the car and paperwork to your house. Manufacturers are advertising these incentives and increasing curiosity: a lot of people are car shopping as they quarantine at home.
The Good Deals May Not Last—And This is Why
Now could be the time to jump if you’re one of those shoppers. But the offers may run out as soon as the economy reopens. Here’s why:
Most auto manufacturers assembly plants are shut down and have been for a few weeks; a few are now re-starting in other countries and those in the US are expected to restart next month. Still, with supply chain disruptions and a scarcity of materials and parts, it may be a while before car dealers inventories are replenished.
There may be a rush on new cars when the economy gets back on its feet. This happened in China; auto sales bounced back and in fact, buying a car was often one of the first things people did when quarantine was lifted. The rush to buy is depleting dealership inventories.
More and more people view personal transportation to be safer than mass transit, so they want their own car. And, in a world where we still are not safe from the virus and continue to have to protect ourselves, a car can be a cocoon against the world.
Pent up demand will be unleashed. This always happens when people’s confidence steadies. With people going back to the office, returning to work and feeling more optimistic, more will feel able to finally make that purchase they’d been planning.
Ready to Buy? Here are the Deals Auto Brands Are Offering
So… if you’re in a place where you feel confident and ready to buy, this could be the time. Discounts, finance rates and incentives add up to 20% or more off the top of the price of a car. Here are some of the best deals out there right now:
Buick, Chevrolet, GMC and Cadillac: 0% financing for up to 84 months or up to $6,500 off the MSRP; Cadillac offers a cash discount off the MSRP in addition; and, an additional cash discount is available to First Responders.
Honda: Cash discounts and no payments for 90 days; many leases are $0 down at signing.
Hyundai: 0% financing, first payment deferred for 120 days and in some cases, $500 off. Terms depend on the model being purchased and buyers looking for the brand’s most popular model, the Palisade, the deal isn’t as sweet, but still good, with financing offered at 1.9%.
Jaguar and Land Rover: 0% interest and no payments for 3 months, as well as JLR’s Elite Care protection package which includes 5year/60,000 mile warranty, free scheduled maintenance, roadside assistance and connected vehicle services.
Kia: 0% financing up to 66 months for most models. Even the award-winning Kia Telluride has a special offers of 0.9% financing for 4 years or special lease deals.
Lexus: Special lease pricing or 0.9% financing for 60 months and no payments for 90 days.
Lincoln: 0% financing for 60 months, with offers varying by model, but includes the hot new Corsair SUV.
Mazda: 0.9% financing and no payments for 90 days, plus cash incentives for disabled drivers, military and current Mazda owners.
Mitsubishi: 0% financing up to 60 months plus cash back on most models.
Nissan: $0 down, 0% financing up to 60 months, 0 payments for 90 days and Nissan will make the first two payments on some models. This might be one of the best bargains in the bunch.
Subaru: 0% financing for 63 months, even on the new and highly popular 2020 Outback.
Toyota: 0% financing on some models, first payment deferred for 90 days, cash back on some models and special pricing for military and recent college grads.
Volkswagen: 0% financing for 72 months and no payments for 6 months, certain cash back incentives and no money down leases. This is one of the best deals on the market, and it’s available even on VW’s most popular models like the Atlas and Tiguan.
Even with these great deals, most of which expire at the end of April, be sure to ask if the dealer can offer any additional incentives. Some dealers may offer more incentives than others, so it can pay to shop around.
Also, shop and purchase safety. Most dealers will deliver a car for a test drive, deliver paperwork to be signed and complete a lot of the process over email or via digital services. And, they should deliver the car to your door. That in itself is a great incentive!