IS THIS A GOOD TIME TO BUY A USED CAR IN BILOXI
Several advantages come from buying a used car. Frequently, these advantages revolve around the fact that the cost implication of purchase will be reduced. Buying a neatly used car involves lots of factors. A chief factor amongst them is making sure you buy at the right time. It is even interesting to note that now is a great time to strike deals of this nature. The recent trends have made prices on used cars fall strikingly.
What could have been responsible for this development? The COVID-19 pandemic has slowed down activities at used car dealerships; This is an effect of the economic slowdown over the past months.
Just like a lot of other businesses, used-car vendors have been affected. There have been cases of inventories piling up while potential customers stay home for most of them. One significant way they have chosen to deal with this development in Biloxi and many other parts of the United States is to encourage people by slashing the prices of these used cars.
In the early dive of the coronavirus pandemic, reports according to the Manheim Used Vehicle Value Index had it that wholesale used-car prices in the U.S fell more than 11 percent of what it was the previous month and nearly 10 percent when compared to what was obtainable at that time of the previous year; This implies that market conditions have effectively discounted used cars for prospective buyers.
When asked about the pandemic’s effect on used car dealership business, Gabe Shenhar; associate director of auto testing, mentioned that “Every month a car sits on a lot, the dealer pays for it somehow,”
She also pointed out that many of the prospective buyers who had plans to buy before the pandemic would prefer to put such plans on hold. Furthermore, she said, “If cars have collected and gathered dust for two, three, or four months, dealers are going to bend over backward to clear them off. That goes for used-car dealers, too”.
However, that is not all. There are other pointers to the fact that used car dealerships are under pressure to sell at lower prices. Shenhar, a principal-agent in charge of vehicle purchase for CR’s testing program, says that he has seen a stack of cars waiting to be sold at dealerships recently. He also went further to mention that “consumers are going to be in the driver’s seat when they decide to shop.”
It is evident that going by the dimension of basic economics is evident to see how the forces of demand and supply play out in this scenario. However, there is a more beautiful twist to this situation. The outbreak of COVID-19 is pushing car dealerships into online sales and home delivery
As the dealer showroom culture is undergoing a forced evolution, used car dealers are also being forced to improvise on their mode of selling, making better use of the internet. With the rise in the coronavirus pandemic intensity, many dealership outlets in Biloxi, Mississippi, have recorded little visits.
In a bid to stay afloat in the sea of business operations, many dealerships in the United States have paid more attention to the use of online transactions. They also adopted free home delivery services such that their business could continue, and social distancing measures can easily be observed. Long story short, the pandemic has changed the mode of operation of many used car dealerships.
For some, part of these improvised moves includes adding new online digital platforms that allow consumers to select a model, trim level, color, and options, get approved for financing, select a few adjustments that could be made (perhaps, a change in color)and negotiate the prices of trade-ins and the vehicle they’re interested in buying.
This has been the case in some parts of the United States. However, there are no verified reports that any of the dealerships in Biloxi have scaled up to this level in response to the pandemic. Also, a good number of them are already making moves in that direction.
It is noticed that some dealerships that are already very active online presence and are making a decent volume of sales are now making it a central focus of their business
AutoNation is an excellent example in this regard. They are estimated to have over 300 dealership branches scattered all over states in the U.S. Currently, they offer free home delivery to clients from their stores. Once vehicle delivery Is free, customers geared up to get the transaction done.
What is the future of the sales of used cars with the present situation of things?
A look at the world conditions shows that economies are beginning to open up slowly. However, social distancing and the fear of the possibility of the second wave of the virus keep the economy from opening up fully. Given this reality, no one knows what the post-pandemic future will look like. To this end, it seems like this shopping format for used vehicles won’t be done away with anytime soon.
Autopia; a company that helps consumers lease cars online has gathered from recent findings that Online car sales have traditionally made up 10 to 15 percent of the total U.S. vehicle market. This was way before the pandemic set in.
There is no accurate report of how many changes have occurred to the figures since a lockdown and social distancing measures have restrained the movement of customers. However, from all indications from the activities of car dealerships in Biloxi, Mississippi, it Is clear that car sales strategies are evolving and scurrying in the direction of car sales.
When asked about what is likely to happen to the current trend after the pandemic is over, Jason Courter; chairperson of the American International Automobile Dealers Association and chief operating officer at Honda Auto Center in the Seattle area has this to say: “I think there will be a lot more of it after this whole thing blows over.” Coming from an expert, this is a reliable prediction.
If you had plans to get a fairly used vehicle from dealerships before the pandemic started, you have no reason to hold back. In fact, now is the time to buy as low demands will likely force dealership outlets to lower the price. You don’t have to expose yourself to being infected with COVID-19, as many dealerships are more active with online services and home delivery.