Buying a car in crisis – how not to make a mistake

We are going through difficult times – the pandemic of Covid-19 and the economic crisis have come together. And if at this time it was planned to buy a new car? Or is the old one really terrible and needs to be replaced as soon as possible? According to surveys, about half of potential buyers have refused to buy or are in thought: is it worth it?.. Probably worth it if you really need a car (buying a car as a way to invest money is basically ridiculous, unless you are going to invest a million dollars in a collectible Rolls-Royce).

In difficult economic times in the country and the world, car rental is an alternative to buying a car. Why immediately spend huge amounts of money on buying cars, if you can use your money to develop your own business, and rent a car when you really require it. For temporary use, which will not greatly affect your budget. There is no hassle with the rental car, as all maintenance is carried out by the car rental company. You can easily hire a small car to use in a big city to avoid problems with parking or rent a jeep for long trips abroad.

According to statistics, in the first quarter of 2022, 19.6 million new passenger cars were sold worldwide, which is 5.9% less than the same period in 2021.

This is largely due to the shortage of semiconductors and microchips, which has been discussed throughout the automotive world since the beginning of 2021. But until recently, most OEMs have been able to keep up with demand by reducing their own inventory. Now an escalated supply shortage is starting to hold back new car purchasing.

In the current situation, car manufacturers can no longer replenish empty warehouses at dealers, and potential buyers have become less likely to go to car dealerships due to rising car prices. Many of them are either postponing the purchase of a new car or are looking for suitable offers in the used car market.

However, if the issue of buying is critical, we suggest what you should pay attention to first.

There are a few important things to remember and understand first. In a crisis, you need to make a purchase wisely, carefully and (perhaps more than once) having counted all the pros and cons of each of the suitable models. At the same time, you need to clearly understand whether you will afford keeping it, especially if the economic situation worsens even further. And the more expensive the car, the more powerful it is, the more you have to pay and pay.

Secondly, you can buy only the car that suits your taste, that you liked. Even if the offer seems very profitable, but the car, as they say, “didn’t catch eye all right” – it’s probably not worth taking it. An unloved car will never bring joy and, perhaps, will respond to the owner in the same way – for example, it will break down at the most inappropriate moment. 

Thirdly, of course, in a crisis, buyers often turn on the “saving mode” and select a car on the principle of “nothing more”, refusing even the necessary (for life) options. It will be terribly warm during long summer trips in a car without air conditioning, and absolutely unsafe in one without airbags or a stabilization system. In a few years, you decide to sell the car – without modern options, it will cost much less. Yes, you need to think about the residual value of the car as well.

And one more. Remember that in general, premium brands lose more in price than mass brands. Both in absolute numbers and in relative percentages. Relatively and approximately speaking, every year any car loses 10% in value.

The main thing – when buying a car, focus on the available budget and calculate whether you can maintain this car in the future. When to buy is up to you. But it’s absolutely clear that during the year cars will only rise in price. How much is difficult to say now.

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