The prices of used cars look set to collapse in the midst of the ongoing coronavirus pandemic, Bloomberg reports.

Many used vehicle auctions have been virtually paralyzed by the crisis and this could likely lead to falling prices and prove particularly painful for car manufacturers and their in-house lending units which will likely have to write down the value of lease contracts that had assumed vehicles would retain greater value. Additionally, rental car companies will feel the pinch as they will get less money from selling down their fleet of vehicles.

“Six months from now, there will be huge, if not unprecedented, levels of wholesale supply in the market,” executive vice president of Cox Automotive, Dale Pollak wrote in a letter to auto dealers last week. “Cars are coming in, but they aren’t selling. Today’s huge supply of wholesale inventory suggests supplies will be even larger in the months ahead.”

Read Also: Looking For An Affordable, Safe And Reliable Used Vehicle? Check Out These Recommendations

GM and Ford has offered customers one-month lease extensions to try and limit the damage and delay some of the influx of off-lease vehicles heading to auctions. Nevertheless, Manheim says used car sales fell 64 per cent in the last week of March and for GM, that spells bad news as it had $30.4 billion worth of vehicles leased to customers at the end of 2019, vehicles that will eventually be bound for auction yards and are unlikely to sell.

In addition to hurting the used car market, the coronavirus has also hit new car sales and dealerships are being implored to resist the urge to get rid of stock at discounted prices and instead stock up on inventory to ensure they’re ready to go once the crisis is over.

“I implore you to accept everything you have earned, because the day will come in the not-too-distant future when you will want every one of these vehicles, and more,” president of Southeast Toyota Distributors, Ed Sheehy, recently said in a video message at the end of March, Auto News reports.

While auction companies as well as used and new vehicle dealerships are struggling, now could be the perfect time to find yourself a bargain if you’re in the market for a used or new car.