Money Matters: Is now the best time to buy a car?
COLORADO SPRINGS, Colo. (KRDO) - The coronavirus pandemic has hit the auto industry hard.
Ford posted a net loss of nearly $2 billion in the first quarter. Volkswagen says their profits fell to $978 million in the first quarter compared to $3.3 billion a year ago.
With a decline is sales, comes a drop in prices.
According to the website Car and Driver, analysts predict that prices for used vehicles will drop 8-11 percent and bottom out in June.
However, if you're considering buying a car right now, use caution when it comes to long loans and no interest.
Many companies are offering 72-84-month loans at 0% interest rate.
Keep in mind, if the loan is too long, you'll end up owing more money on the car than what the car is worth.
Car dealerships in Colorado Springs remain open, but with social distancing rules in place.
Customers need to set up an online appointment to go into the dealership and test driving is done alone, without a salesperson.
Phil Long dealerships say they have not only seen a decline in car sales, but also in the service department.
As a way to thank essential workers during this time, Phil Long is offering free oil changes and safety inspections to all essential workers through May 16.
