Turn on the TV or scroll through your news feed and you’re bombarded with stories, statistics, forecasts, and reminders of the turbulent times that we’re all living through. According to statistics, the USA is the second only to China in confirmed Coronavirus cases.
As of Tuesday 5th May 2020 there have been more than 1,250,000 confirmed cases. Although 80% of patients experience a mild form of the illness, which can include a fever and pneumonia requiring no medical intervention, there’s no denying the devastating effects that that virus has had on the USA – and around the world.
Unsurprisingly, one of the primary consequences of COVID-19 is the effect the virus has had on the national and global economy. A recent poll said that 43% percent of Americans have lost their jobs or had their wages cut because of the Coronavirus. It’s not unreasonable to assume that a recession is looming.
When economic strife and financial hardship runs rampant, sensible people begin to consider how they can reduce their bills or put some extra money in the pocket. One of the easiest ways to get earn a few extra dollars is to sell your broken car.
Will Any Recession Be Like the Last Recession?
Most of us will be able to remember the devastating effects of the 2008 financial crash. However, no two recessions are ever the same. The circumstances of our current economic predicament are vastly different to 2008.
The mortgage crisis lifted the lid on toxic mortgage lending practices that sent shockwave across the USA and throughout the world. Throw in high gas prices, rising unemployment and that potential buyers were unable to secure loans and you have a maelstrom of economic chaos.
The current economic crisis isn’t hampered by high gas prices (they’re quite low right now) or credit issues. But the Coronavirus pandemic has drastically increased unemployment. More and more people are facing bills they cannot pay and benefits that hardly cover their monthly expenditure. In the last decade, it has never been more important to put some extra dollars in your pocket. It has never been more important to sell my broken down car.
Low Gas Prices and Car Ownership
We’re currently experiencing price war between Saudi Arabia and Russia. Coupled with a huge drop in demand because people are driving far less because of the Coronavirus pandemic. The price of gas in some states has even fallen below $1 per gallon.
However, before you rush out and put a deposit down on a gas-guzzling station wagon, understand that prices will return to pre-pandemic prices. You may want to think twice about putting a deposit down on that Ford Shelby GT500 Mustang!
What does this mean if you want to sell your broken car? Well, if you have a broken car sitting on your driveway it’s probably not worth holding onto it in the hope that you’ll be able to get a mechanic to fix it up.
Sure, get it fixed and you might be able to hit the freeway and head to the more picturesque parts of the state you live for a weekend getaway for a fraction of the cost, but sooner rather than later, you’ll be spending a fortune on gas once again – and that’s if the car can be fixed in the first place!
The 2009 CARS Act (Consumer Assistance to Recycle and Save Act), also known as the Cash for Clunkers program, was launched to help revive fledging auto sales. Customers were able to trade in their old car if it had a combined rating of 18 mpg for a more fuel-efficient car. New car buyers are given a voucher for $3500 or $4500 if the new car is 10 miles to the gallon more fuel-efficient than their previous car.
Now that’s all fine and well, but what if you want to sell my broken car? What if your car was hardly roadworthy, with a shot transmission, gearbox, or electrics with the cost of repair being more than the value if the car? The CARS Act is irrelevant, and your best option would probably be to sell your broken car.
Now, Ford have been talking about offering similar stimulus package to revive new car sales but so far nothing concrete has been decided upon and there is no evidence that this idea will become a reality.
Moreover, the US government has already allocated $2 Trillion relief fund to help people who have lost their jobs because of the Coronavirus. There’s also no evidence that individual sectors will receive any additional funding to help steer them through the current crisis.
The Takeaway if I want to sell my broken down car now
Is now a good time to sell your broken car? Absolutely. The Coronavirus pandemic has plunged the USA, and many countries around the word, into a time of economic uncertainty. Anything people can do to put a little extra money in their pocket – especially if they have their own financial concerns – can only be a good thing.
Want to learn more about how simple and easy it is to sell a broken car? Get a quote with Sell The Car USA today. You’ll even get a free collection if you like our valuation!