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4 Driver-Friendly Auto Trends to Look Forward to in 2021
2020 is a year that most of us wouldn’t mind leaving in the dust. From COVID-19 shutdowns to election mayhem, every day has felt like a toss up. What’s next, 2020?
2020 is a year that most of us wouldn’t mind leaving in the dust. From COVID-19 shutdowns to election mayhem, every day has felt like a toss up. What’s next, 2020? Thankfully, next year holds many promising changes, especially for those of us that enjoy taking leisurely drives, crafting epic road trip playlists, and looking at the driver’s seat as an escape — even a throne! Read on to learn what 2021 might have in store for road warriors and driving enthusiasts. There’s good news to go around!
Low Auto Loan Interest Rates (Almost Indefinitely)
Get a favorable auto loan to upgrade to a new car or refinance your current auto loan. Both situations are likely to look favorable next year, with low interest rates continuing through 2021. The Federal Reserve sees interest rates staying near zero even through 2022, according to CNBC.
“Auto loan rates already have been low and could go even lower thanks to the Fed’s extreme rate cuts,” adds Yahoo! Finance. (P.S. The election should not have much of an impact on interest rates, at least not initially.)
Refinancing your auto loan in 2021 could be a great way to bolster your financial situation, too. You can refinance almost any type of debt and often at a lower interest rate and with lower monthly payments.
More Freedom to Finance, Shop & Buy a Car from Home
The pandemic rapidly accelerated digitization. Now you can complete the whole car buying experience from your couch, starting with financing. With internet-based auto financing companies like myAutoloan, all you need to do is get online and provide a little bit of information about yourself. You’ll receive up to four offers in minutes! With those offers in hand, start car shopping.
From browsing to buying, “it’s almost all virtual,” reports Forbes, and “the dals are almost too good to be true.” The overall experience is more efficient and takes less effort, and dealers are more willing to cater to you. You can expect your car to be delivered, even for a test drive. Valet services are becoming the norm, not the exception that was reserved for luxury vehicle transactions.
"The car buying and selling business was already headed in this more virtual direction anyway; it's not really new so there's no reason to be mistrustful. Just like banking, real estate and virtual medical visits, the car buying world is adapting quickly," explains Autotrader executive editor Brian Moody.
So, So, So Many Sedans and Hybrids to Choose From
Automotive manufacturing slowed, even shut down during the pandemic while consumer demand stayed steady. The result? Issues with dealer inventories across the country.
While pickup truck and SUV inventory is likely to remain strained into 2021, there are plenty of sedans and hybrids ready to roll.
Yes, sedan sales have slipped over the last decade, but that potentially means more options and more negotiating power for you — the buyer.
After talking with its network of dealers, Cars.com found that “some [sedans] are just as plentiful on dealer lots now as they were three months ago, offering up a viable less-expensive alternative to buyers who might have wanted an SUV or crossover.”
They add, “one area that has not seen a run on inventory is hybrids — all hybrids, whether cars, crossovers or SUVs.” The most available models include the Toyota RAV4 Hybrid, Lexus UX 250h and NX300h, Toyota Prius, Toyota Camry Hybrid, Toyota Corolla Hybrid, and Honda Accord Hybrid.
You can expect electric vehicles to keep getting cooler in 2021, too. “The global pandemic is accelerating the development of both electric vehicles and autonomous vehicles, despite the fact that it is difficult to keep investments without sales,” notes Felipe Munoz, automotive analyst for JATO Dynamics.
Take Advantage of 2021 Auto Trends
Refinance your current auto loan while interest rates are at their lowest. Complete the entire car buying process from home, including financing. Trade in your beater for a sleek (affordable) sedan. Drive off the lot with the latest electric vehicle tech! Whatever you do in the new year, take advantage of big changes in the auto industry. So many of them work in the driver’s favor — a.k.a your favor!