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Coronavirus and Cars: Why right now is the best time to buy a vehicle?

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With the second wave of COVID gradually subsiding and vaccine penetration on the rise, it is time for people to slowly return to normal work and business. At the same time, you must remember that social distancing is still the need of the hour. One good way to do that is by travelling safely on a daily basis. By avoiding public transport and choosing your vehicle, you can limit your virus exposure risk. Many factors encourage the purchase of a car or bike as a means of social distancing.

Now is certainly the best time to buy a car or bike!

• Low auto loan interest rates: Since lenders are not finding many borrowers and the macro-economic and fiscal situation of the country is looking to pump money into the system, auto loan rates are affordable now. This means that you are looking at a great opportunity to get a new vehicle.

• High discounts due to low demand: Many companies and dealers have standing inventory in their plants and yards because of low demand. The manufacturers have slowed down production, but they still have to keep assembly lines in motion. Yet with many people in cash preservation mode, car and bike demand is low, and so, makers and sellers are offering big discounts. Why pay more later when there are big discounts on offer right now?

• Low demand means better sales and service experience: The fact that current demand for new cars and bikes is at an unprecedented low also means that sellers and service engineers have a lot of free time. As a result, they are looking for every sliver of sale and service that comes their way. Walk into any car or bike showroom or service centre, and you will experience never-before service levels.

• Good time to shop for insurance discount: With lower demand for new vehicles and the used car and bike market also experiencing hiccups, motor insurance companies are offering the best deals possible. Now is the time to find the best car insurance policy in India with relative ease.

Act now because the market expects a huge demand for cars soon!

Your time to buy a good vehicle, car or bike, is running out, as more and more people are getting back to work and looking to buy vehicles. The following factors might drive up the demand soon.

• Pent-up demand: People have been in cash conservation mode for quite some time, and as a result, many are wondering what to do with their disposable income. This is likely to boost the car and bike market. People who have been controlling expenses will soon start buying more vehicles, particularly when they are vaccinated.

• People getting back to work: With most states poised to open again, offices and factories are also going to open, and people will resume travelling to work. So, the need to travel safely will provide a big push to vehicle sales.

• People moving back to cities: When COVID first broke out, many people with the necessary financial resources and flexible jobs moved to their hometowns and remote locations. However, once the situation normalises, they will start returning to cities. In order to ensure safe travels in cities, people will want to ditch public transport and buy personal vehicles.

• Supply-side constraints, particularly those coming from global chip shortage: Many automobile companies across the world are suffering because of a global microchip shortage. This is expected to soon start impacting India as demand picks up, causing supply-side constraints.

Second-hand car and bike markets are also looking good

Here are a few reasons why that is so:

• People looking to get rid of old models: Thanks to frequent advances in automobile technology as well as the gradual increase in popularity of electric vehicles, more and more people are putting their old vehicles up for sale. If you are looking to buy a used car or bike, you have many choices now.

• People making distress sales: The global pandemic has hit many in India. Long market shutdown and general public lockdowns have hurt the economy, causing many job losses. As a result, many people are putting up their vehicles for distress sale. Hence, you can find some incredible deals in the used car and bike markets.

• Useful only if you are aware of the vehicle history: Do keep in mind that you should choose a second-hand vehicle only if you are well-aware of the history. It is best to do significant due diligence with such vehicles.

Key Takeaway

So, what is the moral of the story? The need for social distancing is going to persist for a long time to come. So, you need a personal vehicle, car or bike, to stay safe and enjoy convenience. Hopefully, this guide will help you choose wisely.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.

This blog has been written by:

S. Gopalakrishnan | Motor Insurance Expert | 40+ years of experience in insurance industry

A veteran in insurance industry. S. Gopalakrishnan is a name to reckon with in the field of reinsurance, he has headed the Reinsurance department and has rich experience in other fields of motor insurance. He loves to share his opinion on latest topics in the insurance industry and how he can help people in safeguarding their assets using insurance products.

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Few Other Articles:

• Increasing vehicle price may empty your wallet but not your motor insurance

• Brand-new or pre-owned - Your car decides the insurance you should get

• Does Your Car Pass The Test? Top Things You Should Know About Your Purchase

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