Coronavirus or Not – Why Are People Still Buying Cars?
As the COVID-19 has continued to infect people in exponential numbers, both the Federal and State Governments were forced to take measures never seen in a century. Businesses were asked to shut down. People were asked to maintain social distancing. The economy came to a halt overnight as the entire country battled a surprise health crisis. However, a few shops were deemed essential. Along with pharmacies and groceries, a few states allowed car dealerships and servicing centers to remain open. The quarter-end figures are now showing that people were buying cars before the coronavirus arrived and they continued to do so even during the pandemic. The question naturally arises – how come cars are as important as pharmaceuticals? Can’t they wait until after the coronavirus? In reality, they are both important and essential.
Coronavirus or not, people still need transportation
The social distancing norms suggest that people are to avoid all non-essential travel as much as possible, not congregate in a closed space, and work from home, if possible. This also means that you are to reduce your grocery/pharmacy visits, go further if the one nearer is already crowded, and not take public transport unless extremely necessary. Obviously, these factors establish the need for a car. You cannot pick up your monthly essentials at once if you do not own a transport. Neither can you go a couple of blocks further on foot and carry the heavy bag back. Then, once the rules are relaxed and you are to return to work, how are you supposed to commute if public transports carry infection threats? Used car dealerships in Greenville, SC, are naturally seeing increased sales even during this COVID-19 pandemic.
The need for a car is not dependent on employment status
Over 20 million Americans have lost their jobs during this pandemic. Logic dictates that people hold on to their savings and not make any massive investments like buying a car. But of those 20 million, not everyone has gone into unemployment due to business shutdowns. Some have been benched without pay. Some have been sent home as a precautionary measure. These people will have to return to work when things normalize again and the risk of availing public transport is encouraging them to search online for “used car dealerships near me” to purchase affordable vehicles. Even people who have been laid off are investing in used cars using their stimulus money as they will need a car later to find a new job again.
Dealerships are going online to feed the demand
Almost all dealerships are ramping up their online game to allow their customers to buy cars without leaving their homes. Previously, dealers preferred that customers visit their dealerships to make a purchase as that gave them a sales edge. But now, they are being forced to transact online mostly in order to survive through this social distancing trend. The top buy here pay here car lots are now taking orders over the phone or email. They are also giving a virtual tour of their fleet to their customers over a video calling platform. The relevant papers are being sent online for verification and people are visiting the dealerships only to sign and take delivery. This transition of dealerships to the digital world is keeping the flow going. As car buyers are getting their demand fed, they are investing in cars like they normally did.
Credit is cheap, oil prices are low, and skepticism is surrounding ride-sharing
The COVID-19 pandemic has dealt a massive blow to the global economy. For the first time in history, the oil futures in the US went negative. And interest rates have floored to stand at 0% APR at some places. People are taking advantage of such cheap credit to make car purchases now as recovery will raise interest rates again. Plus, with almost all forms of global transport grounded, oil prices are unlikely to rise to anytime soon which makes this the best time to drive a car. Add to that the skepticism surrounding ride-sharing and buying personal cars will start making sense. The top used car dealerships in Greenville, SC, are riding this tide. People are making smart choices closely fueled by the government’s fiscal and monetary policies. The need for cars cannot diminish and that is why the sales are up even during this raging pandemic.
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