How to Buy a Car During a Worldwide Pandemic
Buying a car right now is different in some ways than a world without COVID-19, but it’s still possible.
With the outbreak of coronavirus, switching to an online sales model can work for many businesses. Yet, it is very hard for it to work with car dealerships.
Many of them, despite keeping their maintenance departments open, have drastically limited or closed their sales operations to prevent further spread of COVID-19. Additionally, some sellers won’t allow test drives, but will allow you to purchase a car without stepping inside of it. This makes buying a car, especially used ones, extremely difficult.
“We are seeing a lot of people come in that totaled their prior vehicle,” said General Sales Manager of Century Chevrolet in Broomfield, CO, Nick Guzman. “We also see people whose vehicles need repairs greater than the value of their current vehicle.” In simpler terms, if a repair for a car costs $3,000 yet the car’s resale value is only $2,000, you’re better off selling the car than trying to get it fixed.
If you’re in desperate need to buy a new or used car during the coronavirus outbreak, there are a few things to keep in mind.
1) Do tons of research.
This goes for any car purchase, but especially when buying during the pandemic. Take a hard look at a used car’s Carfax, which is often provided for free through a dealership’s website. A Carfax report will detail any accidents the car was involved in or maintenance done to the vehicle. If you can’t get one for free, you can buy a single Carfax report for $29.99. You can also buy 10 reports for $34.99 or unlimited reports for a month for $39.99.
You should also look up a car’s Consumer Reports rating to accurately judge its reliability and driving experience. Consumer Reports (CR) gives an extensive history of a model’s quality, meaning you get a better idea of how a car’s ratings have changed over the years. CR requires a membership fee, yet some public libraries offer free access with a library card. Try checking out if your local library has this option.
2) Check out the car in person.
Since driving to a car lot and looking at cars is not (yet?) banned, you should inspect the car yourself. Dealerships will provide pictures of a listed car on their website, but they may not tell you the full story.
CR provides a checklist to run through when looking at a used car. Regarding exterior checks, they recommend closely inspecting a car’s tires, glass and suspension to get a better idea of how much the car is worth.
However, in some cases, looking at a vehicle in person isn’t always possible or preferred depending on the seller’s COVID-19 sales policies. “If not, ask [the dealer] about exchange and return policies ahead of time,” Guzman said.
If you’re working with a private seller who’s willing to let you look at a car during the pandemic, be careful and protect yourself.
“The guy who sold my car to me was very cautious about social distancing,” said new 2003 Subaru WRX owner and SUNY New Paltz student Vici Gajdzik.
If you want to be extra safe, bring gloves and a mask and try to not cross-contaminate between yourself and dirty car surfaces. Cleaning certain surfaces of the car is an option, too. “Spray products like bleach and Lysol can be effective to disinfect most surfaces,” said Business Insider’s Canela López.
3) Figure out if the car was smoked in.
“...almost 90% of harmful chemicals from cigarettes will remain in a car’s interior if it was repeatedly smoked in.”
Stepping into a used car and being hit with a strong stench of cigarette smoke is a hugely disappointing and putrid experience. The Thirdhand Smoke Resource Center recommends avoiding purchasing a car that was smoked in because almost 90% of harmful chemicals from cigarettes will remain inside a car’s interior if it was repeatedly smoked in. If you’re checking out a car remotely, ask a sales representative if the car was previously owned by a smoker. Dealerships will try to mask any cigarette smell using deodorizing agents. However, they don’t always work. according to the Resource Center, “Depending on the concentration level, the smell will come back.”
4) Buy from a dealership.
If you need a car ASAP, then buying from a private seller will be faster. However, buying from a manufacturer’s dealership has its pros. “There are a lot of small used car lots and finding a trusted one is difficult,” Guzman said. “A large chain worries more about social media reviews and manufacturer relations and reputation.”
Guzman said that dealerships will also thoroughly sanitize their cars in the chance that they offer a test drive during the COVID-19 outbreak. Additionally, they will sell their cars under a warranty or certification, which provides additional protection in the case something goes wrong with your new ride.
“Try to find something that is manufacturer certified. Those have to meet stricter [quality] standards,” Guzman said.
A certified pre-owned vehicle warranty, which is included in a vehicle’s price, will typically cover certain components of a car over a certain number of years and miles and is backed by both the dealer and the car’s manufacturer. Take a Ford certified pre-owned warranty, for example. For 12 months or 12,000 miles, Ford covers faulty engines, transmissions and brakes, among other areas. This means that if one of those things breaks and it’s covered by the warranty, you can send the car back to a Ford dealership to have it fixed for free.
5) Have a mechanic look at the car before buying it.
If you’re buying a used car that has a certified pre-owned warranty from a dealership, the car should have already been inspected and be mechanically sound. Buying a car without a warranty or “certified” badge is a different story.
“A thorough, professional inspection can tell you whether you're about to buy a peach or a lemon,” said Edmunds’ Peter Gareffa. Edmunds is a trusted website that provides detailed car reviews, car listings, pricing guides and useful articles regarding car ownership. “Having a third party inspect and test the vehicle establishes trust and increases your familiarity with the car,” Gareffa said.
These inspections typically cost between $100 to $200, according to Gareffa. When purchasing online, there are services such as Alliance Inspection Management (AIM) which will inspect the car and report their findings to you remotely. A March 16 report indicates AIM’s inspections will continue through the pandemic, so that option is still available to you.
Even having a friend who’s good with working on cars look at the car with you is a convenient solution. “We checked for any oil leaks, hose leaks or coolant leaks,” Gajdzik, the SUNY New Paltz WRX buyer said. “We also checked for rust, since that’s a big problem for Subaru’s.”
6) Jump on really good deals and great financing plans.
Car sales have unsurprisingly nose-dived in March. According to a TrueCar forecast, sales will have dropped 37% in March. Considering the declining consumer market, taking out a loan right now is a smart idea. The Federal Reserve has dropped their interest rate to nearly zero percent, meaning very attractive rates for you. For example, Acura is offering a crazy low 0.9% annual percentage rate, or APR, on most new models. Many manufacturers, to protect customers who might have lost their jobs due to the outbreak, are providing deferred payment plans for leased or financed cars such as BMW, Chevrolet and Volkswagen.
Friendly reminder: You are protected by the law.
New York has something called the “Used Car Lemon Law” that protects consumers against defective used cars purchased within two years of their original delivery. If you bought a car in New York that has less than 100,000 miles when you got it, and it ends up having a big issue with a component covered by a dealer’s warranty, the seller has a legal obligation to fix the issue. If the issues can’t be fixed within 15 days of your warranty coverage, they must refund you the purchase price of the vehicle.
Some private sellers may provide a personal warranty.
“My seller offered a personal one month warranty. If anything goes wrong with the car, he’ll fix it,” Gajdzik said.
If buying a car during the pandemic is an absolute must for you, then lucky you, it’s still possible. But be careful and keep these few things in mind.