Coronavirus, Year-End Discounts Motivate First-Time Car Buyers: Cars.com

First-time buyers account for a substantial portion of the car and truck shoppers looking to take advantage of Black Friday, Cyber Monday and year-end discounts — motivated in part by the coronavirus pandemic, according to online shopping site Cars.com.

“I think we’re seeing a pretty considerable shift in that,” said Kelsey Mays, Cars.com senior editor, consumer affairs and vehicle evaluations.

“People are shopping because they’re more resistant to taking public transit, ride sharing, other things like that,” due to the coronavirus, Mays said in an interview online.

According to a recent Cars.com survey, 18% of in-market respondents reported they were purchasing their very first vehicle, he said.

Consumers looking for the greatest value should consider a car rather than a truck, since on average smaller cars are in less demand, and have smaller sticker prices than bigger trucks, which are in great demand, Mays said.

“Cars are a lot cheaper. If a consumer wants to save money on a new vehicle, they ought to consider a car as opposed to an SUV,” he said. SUVs have outsold passenger cars this year 2-to-1, Mays said.

First-time buyers are shopping used vehicles as well as new, Mays said. Overall, 83% of respondents said they intend to buy a car or truck in the next six months. Of those, about one-third said they planned to make their purchase Black Friday weekend.

Starting Oct. 19, Cars.com began surveying 2% of the site’s visitors. After one month, Cars.com had more than 1,000 respondents.

Most shoppers on the site are looking at used cars and trucks. About 50% say they’re looking for used vehicles exclusively. Another 9% say they’re looking for certified pre-owned exclusively, and another 9% say they’re looking for new exclusively. About one-third would consider either new or used.

Strong demand is driving up prices for both new and used, Mays said.

“What’s a shopper to do? Fortunately, credit is really cheap,” he said. Borrowers are trying to offset higher monthly payments with longer terms at low interest rates, even though in the long run it costs them more in interest.

Cars.com recommends consumers should negotiate for the lowest possible cost overall, rather than concentrate exclusively on the monthly payment, Mays said. “Our rating advice is to shop by the final, out-the-door price of the car, not the monthly payment,” he said.