NEW YORK, Sept. 23, 2020 /PRNewswire/ — Many Americans continue struggling to get by following the highest unemployment rates since the Depression. Any kind of large-scale purchase might seem completely out of the question to most, especially a brand new car. This is soberingly illustrated in Pretected’s report of 26% fewer new cars being insured at this point in the year compared to 2019.
Purchasing a new car requires one to either have cash to buy outright, or to enter into a financing or lease agreement. For someone who may suddenly find themselves without an income the following month, this potentially disastrous arrangement could lead to severe debt and ruined credit.
According to Pretected, new car ownership has plummeted 26% from this time last year and continues to drop. Extended restrictions across the nation underscore that there is no guarantee of the market’s recovery anytime soon.
However, new car sales may already be primed to rebound in areas that have relied heavily on public transportation in the past. Cities like Seattle, Philadelphia and LA normally show some of the highest use of public transport in the country but ridership has almost vanished through the pandemic. Many of those who are able to commute prefer not to be stuck in an enclosed bus, train or even ride-share with strangers for any length of time.
Pretected has found that recent rising interest in private vehicle ownership in these cities and others with major transport systems could indicate a coming resurgence and possibly even a boom in new car sales. Among people living in cities with public transport available who do not currently own a vehicle, interest in owning a new car has risen significantly.
Following what the market has shown on a larger scale, Americans may now be eager for a safer and more private alternative to public transportation.
Pretected.com is one of the leading online insurance marketplaces helping millions of drivers save on their auto insurance each year.
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