The previously flourishing economy has taken some dramatic turns in the last few months due to the health and economic fallout from the global Covid-19 virus. Many industries, including auto lending and financing, have seen a shift in demand. Due to economic uncertainty, many individuals are putting off the risk of making major expenses in the wake of this pandemic.
Consumer confidence is relatively low compared to the last 3-5 years . The current strain of the pandemic on the economy has seen many would-be car buyers postpone on making the purchases.
J.D Power recently revised its prediction that car sales could see up to a 3 million unit decline this fiscal year. Although the slow down in car sales is inevitable, carmakers and sellers have come up with new servicing tools to cushion and attract more car buyers amidst this Covid-19 pandemic. Below is a compilation of the best paths car buyers can use to secure auto financing in 2020.
Coronavirus Car Payment Programs and Plans
To the relief of consumers looking to buy a vehicle amidst this pandemic, most of the major car manufacturers have rolled out favorable car payment plans. These plans have been devised to cushion individuals whose income has been terminated or is threatened by the ongoing health crisis.
On the other hand, car manufactures are keen to avoid the double-whammy of increasing car repossessions and plunging new car sales. Despite the history of car sales recovering in time, car makers cannot wait for tides to turn because of the current high economic uncertainty. Below are some of the most comprehensive and aggressive car payment plans that major carmakers have devised in favor of new car buyers.
- GM is currently offering certain models with 0 percent financing for 84 months. The deal gets even better as car buyers can defer payments for as much as 120 days. All GM customers are eligible for a 3GB in-car Wi-Fi package.
- Ford is also offering to cover the first three months of payments in a six-month payment relief plan. Payments can be deferred for 90 days and the purchase of new cars is available online.
- For ‘well-qualified customers’ making their payments through special APR, Nissan is offering a 90-day payment deferral plan to new customers. The carmaker is offering a 0 percent financing deal on select models.
- Hyundai said it will cover a total of six-month payment for car buyers who lose their jobs or income due to the ongoing Covid-19 pandemic. The offer is available for customers leasing or buying new cars.
- Lexus and Toyota will allow its customers to defer payments for 90 days although the interests will continue to accrue during the deferral period.
- Customers looking to buy Honda cars will get as much as $1000 off while Acura buyers can expect $500 off.
- Subaru customers have no payment deferral option but can expect a 0 percent financing plan with qualifying credit.
Coronavirus to Cause Delayed Deliveries
The global supply chain has suffered great disruption caused by the pandemic. New car buyers should expect a delay in the delivery of their purchased cars. Supplier factory closures in countries like China could see even the yet to close manufacturers experience delays in operations.
Are Car Dealers Currently Open?
Even in localities with strictest policies, car dealerships are not being asked to close. But some car dealers may opt to voluntarily close shop due to the risk of employee infection. Vehicle leasing and rentals, as well as car service and parts businesses, were included in the list of essential services exempted from closure orders. Car sales can still be operated under strict health precautions.
Does Buying A New Or Used Car Put the Buyer at Risk of Infection?
No. There have been no specific reports linking significant risk of infection or exposure arising from the purchase of new cars. However, consumers should take precautions such as using face masks, hand sanitizer, and social distancing protocols. Generally speaking, in this climate it is wise to be considerate of others who may be at a higher risk than you.
With many dealerships adapting to the coronavirus situation by offering contactless car buying and favorable financing options, now would be a great time to purchase a new vehicle. Not that you won’t face some hurdles along the way, but the current storm has created great opportunities and offers such as home delivery and competitive car loans.
FIVE REASONS WHY YOUR BUSINESS’ PROCUREMENT TEAM SHOULD BE USING A CONTRACT MANAGEMENT SYSTEM
By Daniel Ball, business development director at Wax Digital
Even in today’s digital-first environment some businesses are still storing documents, such as contracts, in filing cabinets making it labour intensive to retrieve, manage and even identify important paperwork. In fact, it is calculated that poor contract management practices are costing companies an average of nine percent of their annual revenues.
Moving to a contract management system online can speed up the retrieval process and help decrease the amount of time and resources required to manage contracts. Using a CMS companies can create an online database to centralise information and store documents. Not only does this help ensure contracts are well managed and kept up-to-date, but it can also help businesses save up to 20 percent of overall costs per year.
From legal departments overseeing regulation compliance to finance teams ensuring payment deadlines are met, contract management technology benefits many areas of an organisation. So, how can a good CMS help your procurement team?
How will a good CMS help your procurement team?
The number of suppliers your procurement team must oversee varies depending on the size of your business. It’s not uncommon for large enterprises to be working with thousands of suppliers at one time. A CMS will use automation to record, manage and streamline data, providing procurement teams with important contract details including time and location information, as well as real time alerts such as contract breaches.
Here are five reasons why your business should be using an online contract management platform:
- Increased spend visibility
Using a CMS can give procurement professionals full visibility of suppliers, including the company name and location of where a product is coming from and in what quantity. This transparency will also help contribute to the risk management strategy of your business as it enables you to spot vendors who may be prone to environmental, economic and political uncertainty. In the current environment, for example, suppliers’ may have decreased or ceased production due to COVID-19 or could have been heavily impacted by the negative price of oil, making visibility increasingly important for businesses.
- Eliminates maverick spend
Centralising and streamlining contract documents will ensure that buyers can instantly access up-to-date information to see if a contract already exists. This helps buyers avoid simple and common mistakes that often occur when using manual filing systems, such as onboarding new vendors when existing agreements are in place with another supplier.
- Keeps track of contract renewals
It’s easy to forget about contract renewals or sign up for another term without ending an existing agreement, especially when using a traditional filing system. Businesses using an online CMS can set up renewal alerts in advance, allowing buyers sufficient time to source new vendors or negotiate better prices.
- Improves spend management
A centralised database means that all negotiated prices, contract conditions and other important transactions can be accessed in one place, making it easier to analyse spend. A CMS can help identify discrepancies, find where contract violations have occurred and deal with any associated problems.
- Adhering to regulatory and legislative compliance
It’s important to ensure that all suppliers are meeting the terms of their contracts. A CMS will automatically audit supplier information, meaning that any failures are immediately raised to procurement teams. The platform will also provide notifications if any new data is required or updates need to be made, avoiding potential legal issues.
It’s clear that using an online CMS will benefit your business and procurement teams by increasing spend visibility, enabling access to up to date information, ensuring contracts are closely monitored while contributing to the reduction of unnecessary spend. So, now’s the time to stop relying on those dusty old filing cabinets and start using a CMS.
PROTECTING YOURSELF AGAINST A RECESSION
James Turner, Director at Turner Little
The coronavirus outbreak has spread to businesses, leaving many around the world counting costs. Notoriously, known as the Great Lockdown, it’s been affecting the world economy since early this year. The predicted recession is considered to be the steepest economic downturn since the Great Depression.
So, what does that mean for you? James Turner, Director at company formation specialists, Turner Little, suggests “While there’s no fool proof way to ‘recession-proof’ your finances, establishing a solid base now will put you in a better position to weather the storm.”
“Whilst the future of the global economic landscape is simply too complex to predict, it’s not hard to spot imbalances that have built up, as central banks and governments around the world talk about introducing further fiscal stimulus and monetary expansion, the consequences could be significant,” adds James.
A good wealth management agent will recommend starting by saving a substantial cash emergency fund in a high-yield savings account, understanding your spending habits and where you could cut back if you needed to, and establishing your long-term investing strategy now, so you can stick to it.
If you were to solely invest based on the inevitability of a recession, you are likely to miss returns that are immediately available. If you truly want to recession-proof your assets, the best thing to do is develop a long-term strategy and invest wisely.
Diversification still matters
It’s dangerous to pile all your investments into a single sector, including consumer staples. Diversification is especially important during a recession when particular companies and industries can get hammered. Creating a diversified portfolio of assets blended across asset classes—such as fixed income and commodities, in addition to equities, sectors, geographies and strategies—can also act as a check on portfolio losses.
Build a reserve
To keep your money protected before, during and after a recession, it’s recommended to have an income generation conversation with a financial advisor. This will cover a lot of different topics, but one of the most important is the emergency fund. You’ve likely heard many times that it’s good to have between three and six months’ worth of living expenses set aside in the event of a job loss, health crisis, or other unforeseen circumstance.
Protect your assets
If you’re interested in talking about protecting your assets and your investment portfolio, do get in touch. We specialise in creating bespoke solutions for individuals and businesses of all sizes. The knowledge and expertise of our specialists will be able to assist with any enquires, no matter how complex.
AI: CUSTOMER FACING EMPLOYEES’ BEST FRIEND IN THE FINANCIAL SERVICES INDUSTRY
By Ryan Lester, Senior Director, Customer Experience Technologies at LogMeIn We’ve all heard the old saying “money talks.” Well...
HOW IDENTITY IS SECURELY UNLOCKING THE SME BANKING MARKET
By Mike Kiser, senior identity strategist at SailPoint Have an identification card in your wallet? With a selfie and a...
FIVE REASONS WHY YOUR BUSINESS’ PROCUREMENT TEAM SHOULD BE USING A CONTRACT MANAGEMENT SYSTEM
By Daniel Ball, business development director at Wax Digital Even in today’s digital-first environment some businesses are still storing...
EXEGER – CHANGING THE PERCEPTION OF POWER
FINASTRA GLOBAL SURVEY SHOWS APPETITE FOR OPEN BANKING PICKING UP PACE WORLDWIDE
86% of global banks surveyed are looking to use open APIs to enable Open Banking capabilities in the next 12...
STOCK MARKET ANALYSTS DISCUSS HOW TO INVEST DURING A RECESSION
Online tool looks back at how world markets recovered after the last recession in 2008 Analysts take learnings from previous...
PROTECTING YOURSELF AGAINST A RECESSION
James Turner, Director at Turner Little The coronavirus outbreak has spread to businesses, leaving many around the world counting...
LIBERTY BANK REINFORCES ITS FRAUD STRATEGY TO FURTHER PROTECT ITS CUSTOMERS
Liberty Bank, the third largest bank in the Georgia, has reinforced its fraud strategy to address the rising volume of...
COMMERCIAL FINANCE SPECIALIST IGF NAVIGATES THE LOCKDOWN
Leading independent commercial finance specialist, Independent Growth Finance (IGF), entered the lockdown after a record-breaking financial year came to an end in March. In April, it was accredited by...
COVID-19 WILL BE THE TIPPING POINT FOR DIGITAL TRANSFORMATION IN PROCUREMENT
Seven in ten organisations in the UK say the global pandemic has increased the need for procurement to digitally transform...
TRIO OF NEW REGIONAL DIRECTORS HEAD UP TIGERWIT’S GLOBAL EXPANSION
Following the release of their record revenue for the last financial year, award-winning online trading platform, TigerWit, has strengthened their...
SECURING THE EVIDENCE FOR VAT AND TAX
Filippa Jörnstedt, Senior Regulatory Counsel at Sovos Businesses are almost entirely digital in their nature. With sophisticated technology now...
TIPS TO PROTECT YOUR CASHFLOW DURING THE COVID-19 PANDEMIC
By Rita Cool, Certified Financial Planner at Alexander Forbes Financial Planning Consultants The full impact of the COVID-19 pandemic is...
RETAILERS WHO OPEN THEIR DOORS WILL NEED EXTRA HELP
With thousands of retail stores given the green light to open in the next few weeks the government needs to...
LEADING BANK IN TURKEY USES ONESPAN’S MOBILE APP SECURITY SOLUTION TO HANDLE DOUBLING OF DEMAND FROM COVID-19
OneSpan’s scalability helps DenizBank protect millions of mobile banking users as the coronavirus pandemic drives massive increase in hacking attacks...
KASKO PARTNERS WITH VIVIUM TO LAUNCH FULLY DIGITAL BIKE INSURANCE IN BELGIUM
Vivium, a member of the P&V Group, turned to the InsurTech provider to build an omni-channel and bilingual insurance product,...
THE STRATEGIC ALLIANCE BETWEEN MINSAIT AND AURIGA WILL PROVIDE AN INNOVATIVE OMNICHANNEL PLATFORM FOR A SUPERIOR BANKING EXPERIENCE
Minsait, an Indra company, and Auriga have reached a strategic agreement that will strengthen their position in the digital transformation...
INFORMAL PUBLIC TRANSPORT: FRONT-LINE MOBILITY HEROES
By Devin de Vries, CEO, Where Is My Transport Every week, 5 billion commuters in emerging markets have no...
FIXING THE FLAWS IN FINANCIAL SERVICES’ DATA MANAGEMENT
Simon Cole, CEO at Automated Intelligence, a cloud-based data compliance and governance solutions provider to the financial services sector, warns FS...
FROM MANUAL TO MACHINE LEARNING: HOW TO APPROACH THE RECONCILIATION ‘PROBLEM’
By Christian Nentwich, CEO at Duco At the start of 2020, before the global coronavirus pandemic changed the world,...