How Has COVID-19 Affected Salvage Car Market?
Lately, the world has been being challenged by one of the most epic economic and health threats in the history of humanity. The Coronavirus, also knows as COVID-19, has already affected all industry branches, and the automotive market is unlikely the exception. Vehicle manufacturers are now confused no less than their consumers, and many unanswered questions still bother the automotive society.
According to CNN Business, US car sales fell drastically in March 2020. For instance, General Motors reported its sales to fall 7% in the first quarter of the current year. Similarly, Fiat Chrysler reported that their sales in the US to drop down 10%. Additionally, millions of people have already lost their jobs because of the pandemic and some of them can’t afford to cover their basic needs, not saying about buying a car.
So, what’s coming next? Will manufacturers re-open vehicle production in 2020, and what is waiting ahead for the salvage car market? In this article, we’ll try to give answers to the most urgent questions.
How long will car dealerships remain closed?
Because of the need for lock-down and workforce reduction, many vehicle manufacturers across the globe had to temporarily stop their activity. As an example, in the US solely such auto plants as Honda, Toyota, Fiat Chrysler, and Nissan shut down or suspended their production. Also, you could watch such European automotive plants as BMW, Volkswagen, Ford, and Renault get closed because of the pandemic.
However, the Center for Automotive Research (CAR) has recently shared a report that states automakers in North America to renew their activity in the nearest time. Thus, “FCA, GM, and Volkswagen announced plans to restart production at four of their assembly plants during the week of 31 May 2020”. Though showrooms are still closed in many US states, online purchases from home are allowed across the country and the globe. In contrast, the release of new car models is likely to be delayed this year.
What’s the impact on the salvage car market?
As social distancing requires to prevent using public transport, experts predict that many people are likely to buy used or salvage cars. This way, they can safely get to work or elsewhere, as well as save money. Also, the majority of people aren’t going to take loans or lease cars, so salvage vehicles are their perfect match for the nearest future.
The salvage car inventory is about to fill up, and here’s why. People stopped traveling much these days, so rental companies are suffering from decreased sales. Likewise their consumers, rentals are in need of money. So, selling their automobiles to used car dealerships and salvage auctions is the best thing they can do in the current situation. Also, many lessees won’t be able to return cars, so these vehicles are likely to end up at salvage yards.
Is it a good idea to buy a salvage car these days?
The more offers you can find on salvage auctions, the lower is the price. So, you can consider the current situation as a reasonably good time to buy a used or salvage car. Not only can you expect to find more cheap deals than ever before, but also choose among a variety of leased and loaned vehicles.
If the world’s economy picks up this summer, the salvage car market will experience an extremely high demand for cheap cars. So, you can start browsing for possible deals on salvage automobiles right now, just to be aware of what’s going on in the market.
The bottom line
If you decide to buy a salvage car, think about the ways to ensure your safety by disinfecting a vehicle before you start driving. You can utilize special car cleansing products or simply use soap, bleach, or any other type of cleaning liquid to neutralize the bacteria. And remember – no handshakes if you buy a car from a private dealer.