Dealers Offer Incentives During Coronavirus Pandemic: Is Now The Right Time To Buy A Car?

With vehicle production at a near halt, the time might be right to buy a new car. Many auto dealers are looking to offer big incentives to buyers that are looking to purchase a vehicle during the coronavirus pandemic.

According to J.D. Power (via CNBC), a sales rebound is expected at the end of April, which could offer some car buyers significant discounts and 0% financing rates as sales continue to be down as much as 50% in April compared to the same month last year.

However, these declines won’t last as recovery is expected as Thomas King, president of the data analytics division and chief product officer at J.D. Power told the news outlet that “We are now firmly in a period where we see sales of new vehicles start to recover. We’re still severely depressed in terms of vehicle demand, but the good news is we have turned the corner in terms of the declines.”

As stay-at-home orders relax, J.D. Powers expects sales in May to be key for automakers, but it is dependent on when vehicle production begins again. Supply shortages could occur in some markets, and demand could increase in some car and truck segments; King told the news outlet.

“We’re now in an environment where dealers are really starting to burn through their inventory they have on the ground,” he said. “That makes it absolutely key that we get the manufacturing operations back up and running in May.”

The United Autoworkers (UAW) union has said it opposes an early May start date for re-opening vehicle production plants as it calls for more testing and safety protection for workers.

Ford and GM have not yet released when they will begin production at their plants, while Fiat Chrysler Automobiles said it would restart production on May 4, according to Bloomberg. Kia Motors and Mercedes-Benz reportedly have plans to open their plants on April 27 while Honda has extended its production suspension through May 8.