The current pandemic has created some incredible challenges. However, wherever there is a challenge, there is also an opportunity. If you have been looking for a great time to get a car loan, now could not be a better time. For several reasons, right now may be the best time to get a car loan. Here’s are five advantages of getting a car loan during the current pandemic.
1). Historically Low-Interest Rates
Because of the pandemic, many people are putting off their car purchases. Because of these, interest rates have been pushed down to historically low levels in order to attract buyers. Now, you can get the money for your loan for much less than you have in the past. In fact, it is not unusual to get an auto loan for less than 4%. Compare that to a couple of years ago when the average auto loan interest rate was hovering around 7% or 8%. Over the life of the loan, this could save your thousands of dollars. If you shop around for auto loans, you will be able to find some incredible deals during the pandemic.
2). Lower Vehicle Prices
The pandemic’s stunting of vehicle demand means that you will be able to get vehicles at incredible discounts. That also means that you will not have to loan as much money as you did in the past. This will allow you to have lower monthly payments or you can have a shorter term on your loan. It is a good idea to monitor the various dealership specials and see what kind of discount you can get. Another way that you can find a lower price for your vehicle is to shop towards the end of the month when dealerships and salespeople have to meet their sales quota. You may be able to get a lower purchase price that you will during any other time of the month.
3). Better Terms
In addition to better prices for your loan, you may also be able to get better terms on your loan. For instance, you may be able to put less money down upfront or you may be able to get some extra incentives or benefits with your vehicle purchase. The dealership may also you some upgrades on your vehicle. In short, you will be able to get a much better value for your money. You can also ask for specific terms for your payment plan. For instance, you can ask to have guaranteed trade-in value for the vehicle if you decide to buy again from the dealership. You will be surprised how flexible dealerships can be at the moment.
4). Streamlines Loan Application Process
The pandemic has caused all businesses to practice some form of social distancing. That means you can find car loans online. You can literally shop for your loan online, fill out the application, and get approved from home. There are a number of popular online lenders available. From there, you can take that loan approval to a dealership and get your deal. This will cut down a lot of time during your car shopping and loan application experience.
5). Payment Protection Plans
There are a number of dealerships that are offering payment protection plans in case you lose your income during the pandemic. This will give you the opportunity to continue to own your vehicle in case you have any interruption in your income. You should check out as many dealerships as possible to see which ones offer a payment protection plan. Some of these plans will allow you to defer anywhere from three to six payments. This will give you added peace of mind during the length of your loan.
Getting a Great Car Loan During the Pandemic
Don’t let the pandemic get in the way of getting the vehicle that you want. Right now, there are a number of advantages to getting a car loan. Be sure to look into getting a car loan online and carefully check out the prices and the purchase incentives that dealerships are offering right now. You will be surprised at home much you can save right now.
Eric Reyes is a passionate thought leader having been featured in 50 distinguished online and offline platforms. His passion and knowledge in Finance and Business made him a sought after contributor providing valuable insights to his readers. You can find him reading a book and discussing current events in his spare time.