The Effect of COVID-19 on the Automobile Industry
The Coronavirus has hit almost one-third of the world, and the automakers are making necessary amends to fend off the monetary burdens and alleviate the car buying process.
Ever since the malice of COVID-19 has spread across and far the borders of China, all the industries of the world are bad effected. The same applies to the automotive industry who is not only supporting the internal COVID-19 patients but also offering relief packages for automotive buyers across the globe.
According to the figures released by the RBC Capital Markets, the global decline in automotive sales is predicted to go down 16% due to the Coronavirus epidemic in 2020. The statistics also state that significant loss in auto stocks will be mainly fueled, almost 20%, by the decline in U.S. Automotive sales.
Despite the worldwide shut down of the automotive industry, the car manufacturers are availing all the possible means to stabilize the industry and prevent it from going down the drain. Here is how the Coronavirus is affecting the global automotive industry and opening new avenues for automotive buyers:
COVID-19 Side-Effects: Automotive Production Hubs Shut Down
Since late Mid-March 2020, automotive manufacturers like General Motors, Ford, Fiat Chrysler have shut down their production factories in the COVID-19 hit countries. The shutdown of the automotive factories has sent about 150,000 workers home. According to the latest news, the closing of production centers and operation centers in the U.S. was speculated to last until the end of March. However, the situation seems uncertain so far.
On the Positive Side: Lower Interest Rates for Car Buyers!
The COVID-19 ripple effect has stirred the interest rates in the automotive industry to go up and down in the global market. According to the report released by Edmunds.com , the average Annual Percentage Rate, APR, on new car loans in February 2020 was marked at 5.6%. The interest rate has fallen from this figure down to 6.3% during February 2019.
In other news, the Fed has announced bringing interest rates down to almost zero. The current interest rate benchmark is somewhere between 0% and 0.25%, which offers new avenues for car buyers and lenders alike.
Additionally: Deferred Payments on Car Lease Plans
Another exciting thing happening in the COVID-19 affected automotive world is that several auto dealers and automotive manufacturers have announced to offer relief packages for car buyers. Companies like Fiat Chrysler Automobiles, General Motors, Ford, Honda, Kia, Hyundai, Nissan, Volkswagen, and Toyota are offering incentives such as deferred payment options and lease plans which range from 90 days up to 180 days.
Great Time to Lease or Buy a Car – We take care of everyone’s Safety
Given the current scenario, the situations are much favorable for car buyers across the world. We are offering the safest and securest car buying and leasing options.
Our company takes care of personal and consumer safety at every level. We are sanitizing all the surfaces after every hour to eliminate any chances of infection. Our drivers are fully-equipped with proper masks, gloves, and clean clothes and always follow strict instructions to wear them . We are also offering curbside, touchless, and contactless delivery so you can enjoy the safest and most satisfying car buying and leasing experience.
Get in touch with us today!