Looking to Make a Big Purchase? Don't Buy Any of These Anytime Soon!
- Author: Bryan Miller
- Posted: 2024-06-07
With COVID-19 shutting down many venues and things to do, some people have turned to retail to quell their boredom. Because of eCommerce, many transactions can still be made, but it's a little too easy to spend money online. With all the promotions and deals going on right now, you might be tempted to make a purchase you've always wanted to make.
While the prices of certain goods have gone far down due to COVID-19, such as clothing, some prices have unexpectedly skyrocketed. It's a great time to stock up on jeans, but unless the purchase is absolutely necessary, here are a few things that you should hold off on buying. Your pocket will thank you later!
Used Cars
Now that the CDC has lifted its guidelines recommending that non-essential travel be avoided, certain states have reopened, and there's less traffic than before, many are turning to the open roads. However, some people have avoided car ownership in the past because they live in dense, urban areas and had no need. Now, many are in the market to buy vehicles, leading for prices to skyrocket.
If you need to buy a car, the price gap between new and used models is getting smaller and smaller, so it's worth checking the new price before buying. Unless it's absolutely essential, you should especially hold off on buying used pickup trucks. They're selling at astronomically high prices across the country as more and more Americans look for road trips to escape the boredom!
New Laptops
While a quick look at Craigslist will yield plenty of affordable, used laptops, new laptops have surged in pricing recently. This comes as no surprise, since many people who formerly worked in offices now work from home. To do so, almost every occupation requires Internet access and a computer. Due to their portability, laptops in particular are being purchased en masse by this group.
To make matters worse, larger companies are buying consumer laptops in bulk to cut their costs. This leaves much less of a supply for the rest of us. If you take a look at most common laptop manufacturers' websites, you'll notice that the majority of computers say that they'll be shipped within the next few months. This is because the supply simply can't keep up with the demand.
If at all possible, stick to used tech for the time being.
Video Game Consoles
At the beginning of the pandemic, you may recall that social media had many jokes about Animal Crossing, a popular game available on Nintendo's consoles. Very soon after, the Nintendo Switch had completely sold out. Even months later, stores have sporadically had small supplies that have sold out in minutes.
Other game consoles aren't as significantly impacted, such as the Xbox One and the PlayStation 4. However, both Microsoft and Sony are expected to release their latest edition of console soon. Because of the huge demand for gaming consoles since so many are stuck at home right now, the price points on these aren't falling. In a natural market, they would be plummeting as consumers trade them in for a preorder on the newest versions.
Both new and used modern consoles' prices are affected by this. If you still have that itch to game but are missing a console, consider purchasing a used console of the previous generation, like an Xbox 360 or a PlayStation 3. These price points have gone down as many have turned their focus towards newer generations.
Alcohol, Tobacco, Etc.
Though most of us enjoy a drink now and then, your pocket and your liver might thank you for dodging tobacco, alcohol, and cannabis purchases (where legal). The stocks of corporations who have large stakes in the production and sales of these substances have grown substantially. This is due to many Americans utilizing them as a way to cope with the COVID-19 situation.
Of course, the only exception to this would be medical cannabis purchased from a licensed dispensary. This pricing is often capped by states because it's necessary for residents' wellness. Though states are not ostensibly raising sales tax on these items for the most part, they're raising the excise tax on tobacco and alcohol. In the end, the tax gets passed onto the consumer.
The Takeaway
Remember that COVID-19 is a transient situation. As governments get the virus under control, society will open back up more, and markets will return to normal. It's wise to take advantage of markets that have become far cheaper due to it now, then buy the products (minus unnecessary alcohol and tobacco, of course) later when they're cheaper.
