Marc Zaransky on the Unexpected Surge of U.S. Auto Sales in April

The COVID-19 coronavirus pandemic has produced many economic, political, and social disruptions and major industries from finance to the automotive industry have felt financial implications. The U.S. auto industry, for example, saw inevitable decreases during the month of March and even into early April. As a result of stay-at-home orders and self-isolation policies, it was expected that new auto sales would see a drastic decline by as much as 80% compared to its pre-pandemic forecast.

While still significantly down, new vehicle sales declined less than expected at the beginning April despite the coronavirus outbreak and state orders of production plant and dealership closures. In fact, sales through the first two weeks of April only slipped about 55% — giving indication that sales for the full month may not be as bad as previously forecasted.

Marc Zaransky, entrepreneur and operator of a successful family-owned auto leasing company in the Illinois area, explains how auto sales have not been as affected during the coronavirus pandemic as many analysts originally predicted.

Online Purchasing of New Vehicles

Stay-at-home orders and business closures continue to remain evident in some U.S. states. As a result, dealers are eager to accommodate buyers who want to conduct transactions remotely. A sale is a sale, and thanks to modern connectivity, it’s completely possible for buyers to get a good look at a potential purchase without ever leaving their home. In fact, says Marc Zaransky, purchasing a vehicle online has become an enticing option for car-buyers today.

Becoming digitally friendly has benefited U.S. auto sales, as the car-buying process becomes more effortless than ever. For example, of the more than 3,000 Ford dealers in the U.S., 93% offer virtual online sales processes, including virtual product walkthroughs, video chats, online credit applications, and contract capabilities — a more streamlined buying process that has led to more people buying cars than originally anticipated.

Marc Zaransky on Long-term Financing and 0% Interest

Long-term financing and 0% interest offers continue to assist sales during the pandemic. Today, automakers are offering 0% financing for up to seven years and deferred payments to spur sales amidst the coronavirus pandemic.

When it comes to 0% financing, it’s usually something that’s given for less than five years. However, we are seeing 0% financing for up to seven years. Depending on the purchase price of the vehicle, 0% financing could save someone thousands of dollars over the course of the loan, notes Marc Zaransky.