Car Crisis 2020: Is Now The Best Time To Buy A Car?

Right now might be a once in a lifetime opportunity to buy cars for super low prices.

1. General Idea
- While everyone is worried about the Airplanes, Cruise and small business
- They haven’t really noticed how much money car dealerships are loosing
- Because last time I checked, no one is rushing to guy buy a car with a mask on while being unemployed.

What this Means:
- Supply and demand issues
- More cars than buy which leads to prices going down
- And sales also going down

Facts:
- Used car prices Went down by 10% - 11.8%
- And sales went down by more than 64%
- That’s is a big problem, which could lead to bankruptcy if the government does step in as they did in 2008 ( Remember GM Bailout)

2. So should be looking to buy a car
- The easy answer is yes
- Car Prices are down, interest rates are low and sales are down
- But… car dealerships are not dumb

What they'll do: (it's like when you see a store with a fire sale because they are closing, but they never close)
- Since used car have a high-profit margin ( they can afford to sell for lower)
- They also make a profit from the Loans they get you for the car
- Also for maintenance
- And even if you go with one of their packages or insurance savings

Tip: they will use every trick in their book, to take advantage of these times and make a profit, so I'm going to tell you all those tricks so you can do the same ( now it's fair)

3. Facts:
Math: ( we can use this against them)
- Average new car 36k
- An interest rate of 2-17%
- Losses 10% when you drive it off the lot, and 15-25 % every year after
- So by the end of 5 years, you’ve lost over 60% on that new car but just paid full price and interest on the loan.
( that’s why buying a used car, and having the other person take all the loss is the best idea) – a new car is like throwing money out the window while you drive

But because WE know:
- Shrinking Demand ( 10m out of work )
- Use Car prices drop by 11.8%
- Used car Sells drop by 64%

The Problem: GM or General Motors has 30.4 billion dollars of vehicle lease last yeat ( use it against them)
- And when they all come into the lot
- That means to much supply and not enough demand
- Which means prices will go down.
- Why because if they don’t sell, it’ll just continue to depreciate it


4. How to Use this information
- Compare the price of the vehicle you want with 5-10 dealerships in your area
- Once you know the price you can call them and make an offer on those vehicles
- Or you can call them ( and ask when doing you guys have a new car that were lease for awhile coming into the lot) – this way you know when they will have a lot of supply and not enough demand

Risk:
- Government steps in and saves them
- A vaccine comes out tmr

I also recommend:
- Checking buying car from other people also, they will provable be selling for low prices also, ( no job, and no income, means they don’t want to worry about the car)

Overall:
- It's like buying something you don’t need just because its on discount
- If you need one, buy a used car under a good price you can pay and is no more than 10% of your income ( buying cash sometimes is a good option too)
- Cars lose value, so it's like driving your money away ( always buy use and never buy something you can't afford, that’s a liability)

* PRO TIP*
INFORMATION IS EVERYTHING
Credit Video: https://www.youtube.com/watch?v=fs2uhUbs9Gg
Articles: https://www.bloombergquint.com/business/fear-of-an-impending-car-price-collapse-grips-the-auto-industry
https://www.valuepenguin.com/auto-loans/average-auto-loan-interest-rates