According to a new survey by auto-shopping website Autolist.com, zero-percent financing offers currently have the biggest impact on car sales. Nearly half of the 1,436 respondents chose that option from a list as part of a survey conducted in April, at the height of the coronavirus pandemic.
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“These are highly unusual and uncertain times for all consumers thanks to the coronavirus,” said Chase Disher, analyst at Autolist. “So it’s no wonder that car shoppers prefer the long-term stability that zero-interest loans provide.”
As part of the survey, respondents were asked to pick up to three types of incentives that would make them more likely to buy or lease a new or used vehicle at that moment. Survey takers could choose from the following options: zero-percent financing, flexible payment plans for loans or leases, deferred payments at the beginning of the loan or lease, limited-time payment forgiveness if a buyer loses their job, owner loyalty cash, waiving of late fees on loan or lease payments, other, unsure.
The results were as follows:
- Zero-interest financing: 48 percent.
- Flexible payment plans for loans or leases: 32 percent.
- Deferred payments at the beginning of the loan or lease: 27 percent.
- Limited-time payment forgiveness if a buyer loses their job: 24 percent.
- Owner loyalty cash: 17 percent.
- Waiving of late fees on loan or lease payments: 16 percent.
- Other: 10 percent.
- Unsure: 10 percent
Additionally, 13 percent of those who answered the survey said none of these offers would make them more likely to buy a car during the coronavirus pandemic.
“Consumers’ mood really bottomed out in late March and early April, according to our poll,” Disher said. “And while there is still a lot of uncertainty about recovery in the next few months, our data is showing that car shoppers are feeling confident in the long-term health of the economy and their decision to buy a car in 2020.”
Most automakers are currently offering some level of incentive in an attempt to spur customers into purchasing. Autolist has a full rundown of the incentives that automakers are offering during the COVID-19 pandemic is available here.
