Buyers often ask us the question…. When is the right time to buy? For the client who is uncertain of purchasing or planning there are always reasons like waiting till after the tax year, elections, the budget, the new model arriving and now the Covid 19 pandemic which is upon us. There is no definite answer to the question to make it simple and easy…
From my own experience and knowledge over the past 30 years in the motor industry, the right time is NOW!! Here are a couple of reasons one needs to consider. Inflation is the enemy of our funds. Today with X amount of money you could purchase the top of the range of a certain model of car your heart desires. Leave that till a year has passed and your money now can only buy you the entry-level model due to price increases. It is called INFLATION.
Secondly, if you have a trade-in, the equation becomes even more tricky. If you elect to drive your old car for another year the following happens. The book values on all cars drop every month, your kilometers rise, and, in that period, you will still need to maintain the vehicle, be it by way of servicing, tyres, or anything else that might go wrong, especially if your car is no longer under service plan or a warranty. And then the possibility of accident damage which even when repaired will still cause the value to drop. This drops in value and the increase in the new car price will make the gap bigger and bigger.
Due to economic circumstances caused by Covid and some other factors the bank interest rates for lending are at their lowest in over a decade. Putting your cash funds in a bank over say 12 months is also not that wise as the return on investment is minimal. Due to stock shortages, dealers are currently paying top dollar for the more popular models. They are also running a lot of specials on the slower moving models. Do your homework properly, approach the dealer and negotiate a fair deal for both parties. Cash deals are not always king as the dealer loses out on dealer incentives derived from the bank. Fallen in love with the car of your dreams?? …. then buy it TODAY!!!!!