- Industry experts say sales of both new and used vehicles have dropped by more than 50 percent at the end of April 2020 compared to the same time in 2019
- Increasingly motivated to sell, car makers and dealers are offering special deals to entice buyers, including zero-percent financing on multiple models
- PowerBand Solutions’ cloud-based platform helps users get access to such deals online by streamlining vehicle sale interactions among participants and eliminating unnecessary middlemen
With 26 million Americans having lost their jobs in the wake of the coronavirus outbreak and another 25% expecting to lose theirs in the near future, people are hesitant to make or even plan for making major purchases such a new car, but, as Warren Buffett said, “Be greedy when others are fearful and fearful when others are greedy.”
The truth is, there has been no better time to land a deal on a new car than now, according to a MarketWatch report (http://ibn.fm/zpZMB), and PowerBand Solutions Inc. (TSX.V: PBX) (OTCQB: PWWBF) (FRA: 1ZVA) is there to facilitate any transaction safely and swiftly via its cloud-based auto trading platform, which can be used from smartphones and other digital devices, from any location. That’s good news in the social distancing brought on by the pandemic.
Buying a car may normally includes test drives and multiple trips to the dealership, but social distancing rules imposed by the pandemic have made the customary practices impossible, leaving car makers and dealerships struggling. According to one estimate provided by Cox Automotive, new car sales were down 59 percent year over year and used car sales were down 53 percent at the end of April (http://ibn.fm/u3J0o).
As a result, both auto makers and dealers are very motivated to sell and are already offering special deals and online options to entice buyers. Companies like Chevrolet are offering zero percent financing, which means you’ll only be paying off the principal of a car loan. Hyundai also has a no-interest 84-month offer and deferred payments for four months. Fiat Chrysler Automobiles has a zero percent financing, 84-month offer on some 2019 and 2020 vehicles. Kia has a zero percent financing for 75 months offer on certain models, according to the MarketWatch report. To better understand the significance of these offers, it should be noted that car loan rates were between five and six percent as recently as Q4 2019 (http://ibn.fm/KXFx4).
While many dealerships are open, consumers are beginning to demand more ecommerce options in the name of convenience and in light of the restrictions enforced by the pandemic. Ecommerce is already changing the ways in which manufacturers, dealers, and digital car sellers offer customers new and used cars. The compound annual growth of digital sales was 7.61% from 2015-19 compared to 1.73% for total sales. According to the Digital Commerce 360 Online Vehicle Shopper 2019 survey, 49% of buyers are willing to purchase a new vehicle entirely online, while Frost & Sullivan estimates that consumers will be able to purchase as many as 1.3 million vehicles online annually as soon as 2035 (http://ibn.fm/l7GUo).
PowerBand Solutions’ cloud-based auto transaction platform successfully addresses this growing need to sell and buy vehicles online. Developed by a team of experienced automotive, technology and finance experts, the platform was created around the core belief that consumers preferred to conduct automotive transactions online and avoid interactions with unnecessary middlemen. The platform allows consumers to sell, buy, lease, auction and finance vehicles with never-seen-before simplicity, speed and cost-efficiency from their smartphones or other devices, irrespective of their location.
The company is working on commercializing its platform to consumers and automotive dealers and to this end, it has secured a more than $2 million investment from Texas-based D&P Holdings Inc. – one of the largest administrators of automotive warranty and insurance products in the United States, working with more than 850 dealerships nationwide (http://ibn.fm/fpVSH).
The company’s cloud-based platform will soon be advertised across the United States via a partnership with Source Digital, a pioneer in immersive commerce through the use of digital media platforms and video content on the internet. This unique campaign will use Source’s patented technology to promote PowerBand’s platform inside popular video content with various channels and influencers in the U.S. (http://ibn.fm/S686J).
For more information, visit the company’s website at www.PowerBandSolutions.com
NOTE TO INVESTORS: The latest news and updates relating to PWWBF are available in the company’s newsroom at http://ibn.fm/PWWBF