Steve Moskos' Blog

Why car dealerships are charging above MSRP for new vehicles

1/23/2023

Supply chain issues are affecting everyone, not just consumers. Grocery stores can’t get the products they usually sell, and it’s not unusual now to see signs posted at restaurants warning people that some items may not be available due to low or no supplies. This is even true in the automotive industry, and some dealerships are using this issue to their advantage by marking up the price of their vehicles and not just by a few dollars.

To entice buyers, dealerships often lowered the MSRP, or manufacturer’s suggested retail price, by a couple of thousand dollars, maybe more. This gave the impression that the buyer is getting a real deal. But many dealerships now have jettisoned that practice and are selling vehicles at thousands of dollars over MSRP. Why? Because inventory is lower, and once a vehicle is sold, the wait for another one to take its place on the lot can take months.

While manufacturers aren’t happy with these dealerships’ choices, according to a recent NPR article, there’s little they can do about it as most dealerships are independent franchises and can set the prices they want to set.

Michelle Krebs is an automotive researcher who serves at the executive analyst of Cox Automotive, and she told NPR that this was the first time in her career that she’s seen most dealerships charging at list price or over. That has to do with high demand and low inventory, but also because they can. And sometimes, it’s not just a few thousands of dollars over MSRP. It can be tens of thousands of dollars.

Some manufacturers have even urged dealerships to lower the markups or risk not receiving some of their most desired vehicles. But that hasn’t stopped the markups, and it looks like there won’t be a break anytime soon. So Krebs suggests that anyone looking to buy a new vehicle be willing to practice patience and to go outside their comfort zone, which may mean shopping farther away to get a better deal.

The author of the NPR article found his next truck over 400 miles away from his home but still ended up paying $2,000 over the list price. So, while shopping farther away can lower the price of your next vehicle, for the most part, you can expect higher prices at car dealerships for the foreseeable future.

Carvana has had its second massive layoff this year

12/7/2022

Last month, Carvana, the online car dealership, laid off 1,500 employees, or 8% of its work force, which, according to CNBC, was comprised mainly of corporate and tech departments, although some operational positions were affected as well. Unfortunately, this isn’t the first time Carvana has eradicated positions as in May, the company laid off 2,500 employees, or about 12% of its workforce, citing lagging sales.

This most recent layoff comes after Carvana’s stock plummeted yet again, bringing its overall total down 97% this year alone. Though sales were robust during the pandemic, interest rates have risen, and with fears of an economic shutdown, consumers aren’t as focused on buying vehicles at present.

The layoffs came via an internal email message from Carvana’s CEO Ernie Garcia which was titled “Today is a hard day.” He cited higher finance rates and delayed car purchases as part of the reason for the layoffs and added that the company had “failed to accurately predict how this would all play out and the impact it would have on our business.” Also, in the email, Garcia talked about how the world had continued to get tougher, and that painful choices had to be made to adapt.

The company’s problems have escalated since its rapid growth last year, and now, with $6.3 billion in debt and its stock price dropping like hail, it’s uncertain as to whether Carvana can recover from this freefall. It’s something to take note of if you’re in the market for a car as fewer people on the job can affect everything from customer service to financing.

Television’s Legal System: Fact or Fiction (Part 2)

10/31/2022

How many television shows have you watched where the client simply barges into their attorney’s office and expects a conversation? Or calls, demanding a conversation even if the attorney isn’t available? It happens more often than it should, and I say that because it’s not an accurate representation of how a client interacts (or should act) with an attorney.

Attorneys can’t be available at a client’s beck and call. They wouldn’t be able to complete the work that needs to be done on client cases. And if you have an attorney right now, you might be feeling frustrated because you’ve left a message, and your attorney hasn’t called you back. But before you consider firing the attorney or showing up unannounced at the attorney’s office, let’s look at a couple of things.

How long has it been since you called? Most of the time, an attorney can’t return your call the same day because he’s returning the calls of other clients or she’s in court, in a deposition, on the phone with a judge, working on a legal document that is needed for court, or myriad other reasons. And if your attorney is in trial, that means they’ve spent the last few days preparing for the trial. When they leave the courtroom, there is preparation for the next day. So, at that point in time, the attorney is focusing on another case and can’t shift focus to yours. When it comes time for your case to go to trial, you will want and will get that same laser-focus.

Think about why you’re calling your attorney. Is it because you want an update on your case? Then perhaps it’s something the paralegal can handle. While it’s understandable you want to talk to the attorney you hired, attorneys hire paralegal/legal assistants because of their ability to assist clients and handle the ins and outs of the legal office. Most of the time, they can answer your question or, at the very least, ask the attorney for an answer for you which will enable you to get what you need quicker.

Are you calling because you have something you think your attorney needs to know? That is something that can also be relayed to the paralegal. It’s understandable that you want to know your attorney is working on your case, but it’s essential for you to understand that if your lawyer does take your phone call, more often than not, you want to rehash something you’ve already shared, feel the need to vent over your entire legal situation, or express your frustration over the amount of time it is taking for your case to go to trial. Is that really an effective use of your attorney’s time?

And, if you’re paying your lawyer by the hour, every conversation you have is costing you money. Instead, if you allow him/her to do the work for which you hired them, you will keep your costs lower.

Finally, if you become frustrated because you can’t talk to your attorney on the phone and decide to show up at the office, you’re likely to be even more disappointed than you are awaiting a phone call. You can’t walk into your doctor’s office, your accountant’s office, or any number of other offices, and expect to be seen without an appointment. Yes, it’s frustrating, but what you see on television isn’t what really happens.

So if you really believe you need to talk to your attorney, call the paralegal or administrative assistant and schedule a telephone call or an in-person appointment. Yes, you might have to wait until the attorney has a clear spot on the calendar, but at least you’re guaranteed time to talk.

Television’s Legal System: Fact vs. Fiction (Part 1)

9/6/2022

Television shows are created for entertainment. Unfortunately, they also create a level of believability. Unless the series is straight out fantasy or science fiction, audiences can reasonably believe that what they’re being shown is truthful. How are they supposed to know a lawyer can’t yell at a judge in court if they’ve seen it on TV multiple times, especially if the series they’re watching is a drama?

Over the years, we’ve all seen the machinations that go on behind-the-scenes in lawyer’s office through the lens of our televisions and now our streaming devices. Unfortunately, what is being shown is often used for dramatic effect or due to time constraints.

Just as what you might see on a medical drama isn’t always possible, neither is what you see in courtrooms or in attorneys’ offices onscreen. Much of it is for dramatic effect and to keep you entertained. In reality, no one would want to watch what really goes on in a lawyer’s office as it’s mostly paperwork and a lot of phone calls, and though the inside of a courtroom can get interesting, it’s usually because of the subject of the trial rather than the actions of the people involved.

An attorney can only work within the bounds of the law and the rules and guidelines set out by the judicial system. They can’t make your case go any faster, and once it does reach the trial stage, they can’t insist the judge speed things up in the courtroom.

But, because there have been decades of law series on television, it’s understandable why you could expect your case to speed along through the judicial system in two days, three at the most. After all, trials wrap up in one hour on most legal series which is why it’s important to separate fiction from reality.

So many attorneys on TV pop up to object like Jack-in-the-Boxes, making it easy for someone to expect their lawyer to be a little more vocal in court. And you could very well be shocked to see the judge speaking so sternly to your attorney who isn’t saying anything other than, “Yes, Your Honor.” We’ve all seen one too many attorneys stand up to judges onscreen, but that isn’t reality. A courtroom is controlled by the judge, and in no instance is it ever acceptable for an attorney to lambast that judge. It might be dramatic, but it could also be detrimental to that attorney’s career.

Watching a real-life case unfold on television can give you a good idea of how things really work in the legal process, but if you’re tuning in to a drama, remember that it’s created to appeal to viewers. Though the series might have a lawyer or law consultant onboard to help keep the story close to the truth , there is little chance of highly volatile dramatic tensions in a real courtroom. In fact, most lawyers go their entire career without yelling at one judge or miraculously wrapping up a case in three days. It’s disappointing, but it’s reality.

What Should You Expect When You Hire An Attorney?

7/17/2022

If you need an attorney for a civil litigation case, you probably have expectations that seem reasonable to you. You’re hiring an attorney because legal expertise is needed so that attorney works for you. While that’s true, legal representation isn’t the same as hiring the neighborhood teen to mow your lawn where you can look out your window every sixty seconds if you desire to see how things are progressing.

If the teen doesn’t mow your lawn exactly how you like it, you can ask them to take another crack at it. You also control exactly how short you want your lawn and how much time it will take to get it mowed. You can also have a conversation with the teen at any time during the mowing process as everything is according to your schedule. But that’s not the process when you’re working with an attorney.

The attorney will need proof to back up your claims. Whereas you don’t need to prove that your lawn needs to be mowed, an attorney can’t just take your word for it that you have been wronged. Evidence must be submitted to the court that proves your case. So you will need to gather paperwork and submit it to your attorney. This will likely be an ongoing process.

Though you are the client, you can’t necessarily call all the shots. While you can ask for certain things, there will be many times when the attorney will have to say no. For instance, while you might wish for your attorney to talk to every member of your family that knows about your situation, oftentimes, that’s not a reasonable use of their time nor will it benefit your case. This is where you need to trust that your attorney knows more about how to prepare your case than you do.

Understand your attorney’s schedule. While your case is important, it’s virtually impossible for an attorney to be available to speak with you or meet with you if you call or show up unexpectedly. An attorney keeps a fairly tight schedule so it’s always best to call for an appointment rather than running the risk of showing up and being turned away.

Your attorney cannot make any guarantees about how your case will be resolved. You feel you have been wronged so it’s understandable that you want justice or your day in court, so to speak. You’ve seen a television ad that said this attorney settled one client’s case for half a million dollars, and that’s what you want. And while your attorney would love to make that happen for you, it’s not something that can be guaranteed. So when you’re looking to hire an attorney, don’t expect the same results that anyone else has received.

Expect to wait. After a lawsuit is filed, there may be long stretches of time when you hear nothing from your attorney’s office, and that’s because civil litigation takes a long time. Your attorney or the paralegal isn’t going to call you every week just to tell you there’s nothing to tell you. If you do decide to call or email because you must know what’s going on, you should understand that the answer to that might very well be there’s nothing to tell. Does that mean that nothing is happening? It means your case is still pending in court. It means there are hundreds of other cases that are ahead of yours because those cases were filed first. It means it takes time for your case to go to trial.

An attorney cannot speed up the legal process. Waiting will, at times, be frustrating, but your case will have to take its turn through the court system. It will churn along the same path as other cases, and there is nothing your attorney can do to make sure your case goes to court before you go on vacation or gets wrapped up by the time you get back from vacation.
So if you are in the position of needing an attorney, you should understand that a lawyer knows what is needed to present your case in court. You should feel comfortable with the one you hire and be able to trust the expertise behind the lawyer because a lawsuit may take a lengthy amount of time, and it could test the limits of your patience. But sometimes, a lawsuit is the only way to right a wrong that has been done to you.

The Importance of Hiring the Right Lawyer

6/28/2022

Lawyers advertise practically everywhere these days which makes it easy for you to find one when you need one. If you’ve been injured in a car accident, you know you need a personal injury attorney. If you or someone in your family has been arrested, you’ll be looking for a criminal defense attorney. But what happens when you buy a car and find out later that it’s a lemon? You may see dozens of lawyers advertising that they handle that type of case, but how do you know which one to choose?

Attorneys can have general practices. That means they can advertise their services for various types of legal matters even if they haven’t practiced in that area before. They can take a case they’re not familiar with and either work with another attorney who knows that area of law or try to read up on the law themselves to help you. That doesn’t mean they’ll necessarily do a bad job for you, but it does mean you won’t have the solid experience of an attorney who has a focused practice.

Think of it this way. If you’re facing hefty fines from the Internal Revenue Service, you wouldn’t want to hire an attorney who mainly advertises services for personal injury or medical malpractice. You’re going to want someone who is accustomed to going up against the IRS, someone who can help you with your tax debt.

Just like you wouldn’t hire a maritime lawyer to sue your landlord for unlawful eviction, you don’t want to hire an attorney who is more versed in another area of law than what you need. If you find yourself the owner of a lemon car, an internet search will show you dozens of available lawyers, but it’s worth your time to take a few minutes and investigate that practice a little more. What is the majority of their practice area? If it’s not consumer law, you may want to keep looking.

And here’s one more thing. A big law firm isn’t necessarily a better law firm. They can have more attorneys, but if those attorneys don’t have the knowledge that one attorney who specializes does, you won’t be in better shape. So in your research for the right attorney, check more than just the size of the law firm. Review their websites. See if they have case results posted in cases that are similar to yours. If all the results and good reviews posted aren’t related to what you need, the experience might not be there. And experience is what you need, not a bigger law firm.

Why You Shouldn’t Use the Internet For Legal Answers

6/7/2022

It’s too easy to find the answer you need to whatever problem you have when you have the internet at your fingertips. Just type in whatever you’re looking for or ask a question, and people will respond with knowledgeable advice. Or is it? The problem with seeking answers on the internet, especially for a legal concern you may have, is that you may be getting a response from someone who isn’t a lawyer.

But they seem to know the law, right? I mean, they quote a line from a specific statute. That must mean they know what they’re talking about. Not necessarily. The law isn’t that simple. It’s not just a matter of reading one line and applying it to your particular problem. That line must be read in context with the rest of the statute.

Many times, people will quote things they have heard as the answer. Perhaps they’ve read somewhere or heard someone say that you can return a car within seventy-two hours if you don’t like it, decide you can’t afford it, or just want something else. With that piece of advice from someone you’ve never met, you take your car back to the dealership only to discover that isn’t the case at all.

Unfortunately, this happens more often than it should. That is why it’s so important to seek the advice of a local attorney who knows the laws in your state if you have a legal concern. It’s certainly easier to look up the question online, but there is no way to guarantee you’re getting the right answer. And listening to someone who doesn’t know your complete situation, who doesn’t know what laws apply, and how to move a case forward through the court system can end up costing you more than a two-hour consultation with an attorney.

The internet is one of the greatest inventions, but it cannot take the place of a law degree. So unless you know you’re actually speaking with a lawyer online, reach out to an attorney in your area for advice. It’s one way to be sure you won’t regret using that advice.

The Car You Just Bought Was Repossessed by the Dealership. What Can You Do?

3/31/2022

You’re excited about your new car. You signed the paperwork, were handed the keys, and drove away from the dealership believing everything was in order. Because obviously, you wouldn’t have been given the keys and the okay to leave if everything wasn’t okay, right? You were told you were financed and even given the paperwork which you have in the glove compartment of the car. (Reminder: Take that into your house and review the documents to make sure they are all there.)

Then, fifteen days later, or maybe even longer, you get a call from the dealership telling you to bring the car back. What? What are they talking about? It seems the dealership was unable to secure financing so they need the car to be returned. They say they could possibly work out another deal, but until then, they need the car. But you have paperwork showing you were approved for financing. But that doesn’t matter, according to the rather brusque sales manager who is insistent that you return with the car.

But you’re not taking the car back, not when you have proof you’ve been financed. A few days later, maybe less, you walk out of your office at work to discover your car is missing from the parking lot. You call the dealership and are told they now have it in their possession. You were given the opportunity to bring it back but failed to do so. The dealership had no other choice but to repossess it.

Now what? You made a down payment the dealership is telling you is non-refundable which means you’re without the money and the car. You’re going to lose your job if you don’t have a way to get to work. But the dealership has cut off all communication with you. You’re officially on your own. You think there’s nothing you can do. But that’s not entirely accurate.

Depending upon all the facts of your situation, you may have recourse. Back in 2011, the Federal Trade Commission published a white paper “Deal or No Deal: How Yo-Yo Scams Rig the Game against Car Buyers” that details how dealerships work this type of scam, which is called a yo-yo transaction. If you’re in this situation right now, you may want to read the paper and ask yourself if anything in it sounds similar to what is happening to you. If the answer is yes, your next step should be to call a lawyer.

Now, that phone call isn’t a guarantee you’ll get your car back, but it’s the first step in being proactive. Don’t assume there’s nothing you can do until you’ve spoken to an attorney, specifically one familiar with consumer law.

What is a lemon vehicle?

3/20/2022

Way back in 1960, Volkswagen created an ad with the slogan “We pluck the lemons; you get the plums.” The ad was about the manufacturer’s high quality when it came to inspecting cars before they left the factory and focused on an inspector’s discovery that the chrome strip on the glove compartment on one car was blemished and had to be replaced.

Would that Volkswagen be considered a “lemon” in South Carolina? Under South Carolina law, a new car is considered a “lemon” when it has a manufacturing defect that affects the safety, value, or use of the vehicle. If that defect shows up within the first twelve months or 12,000 miles of a car’s purchase, whichever one comes first, then the manufacturer must fix the vehicle for free.

You can’t just arbitrarily decide your vehicle is a “lemon” and return it to the dealership expecting a full refund. Whether the problem you’re having with your car fits the above criterion is something a court would have to decide.

While you’re reading this, you might be thinking, what about my 2001 car that I just bought from the used car dealership? It needs a lot of repairs, and the salesman didn’t tell me about any of this. Doesn’t that mean the car is a “lemon”? Technically, yes, the car is a “lemon”, meaning it’s a bad car, but it isn’t a “lemon” under South Carolina law because it isn’t a new car.

Does that mean you have no recourse if you’ve purchased a used car? Not at all. An experienced lawyer knows laws that apply to used vehicles and can help guide you in the right direction. Just because you’ve purchased an “unofficial lemon” doesn’t necessarily mean you’re stuck with it.

So, whether you’ve purchased a new “lemon” or a bad car, talking to a lawyer is your best bet. The laws involving vehicles are complicated and can be quite confusing. It just makes sense to get advice from someone who has read and understands those laws.

If I voluntarily turn in my car, does it still count as a repossession?

2/21/2022

If you have a car payment every month that is getting harder and harder to pay, you might be considering turning the car into the bank and looking for something you can afford. Maybe you’ve read somewhere that if you give your car to the bank or finance company yourself, it won’t show up as a repossession on your credit report, which will help minimize the damage to your credit score.

Equifax defines repossession as “the seizure of property that usually occurs as a result of nonpayment of a debt.” Since you are voluntarily turning your car in, the bank or lending company doesn’t have to “seize” it, which many people think will eliminate the possibility of a repossession appearing on their credit. Unfortunately, that isn’t the case.

A voluntary repossession is essentially returning the vehicle you can no longer pay for to the lender before the lender has to expend the effort to take it, and by the time you reach this point, you are probably two or more months behind on your payments. That means, your credit has already been damaged as late payments will drop your credit score substantially. By surrendering your vehicle, you are facing the inevitable head on, but that surrender is still considered a repossession. And, though it may be listed as voluntary on your credit report, it still carries the same weight as a regular repossession.

On top of that, once you turn your vehicle in, it will be sold at auction, and if the car doesn’t sell for what you owe on it, that remaining deficiency balance will be your responsibility. So, either voluntary or not, a repossession may cost you much more than just bad credit.

Consider all your options before making this decision. Wallethub provides a list of steps you can try that might help you achieve a better outcome than just by handing over the keys.

5 Tips to Choose a Cheaper Car to Insure

4/18/2021

Expenses with a new car can add up quickly. Car insurance is one thing that everyone has to have, but there are ways to cut the costs which are based on three things – your personal demographics (gender, age, driving history), where you live, and what type of car you purchase.
Check out our tips below to find a vehicle that will be less expensive to insure.

Check the Safety Ratings of the Vehicle
To really save on car insurance, it’s best to purchase a car that has a high safety rating. Vehicles that have more safety features are more likely to qualify for lower premiums and discounts. Be sure to look for recalls on any vehicle you are considering, as some insurance companies won’t insure cars that have recalls on them.

Safety ratings for cars are easy to find. Five stars is the highest safety rating, and one is the lowest. Remember that insurance companies also consider how much damage your vehicle could cause to another car which could increase your liability premium.

Avoid Sports Cars
Any car that has a high performance engine and other speed features are higher to insure. Insurance companies consider you to be more of a risk on the road, as drivers with sportier cars tend to drive faster and be in more accidents. Also, sports cars cost more to replace and repair.

Avoid Luxury Vehicles
Expensive luxury vehicles always have higher insurance costs. The very high repair and replacement costs can increase your insurance premiums significantly. Models such as Rolls Royce, BMW, and Mercedes-Benz have the highest collision and comprehensive insurance losses.

Be Aware of Popular Models among Thieves
How likely it is that your vehicle could be stolen is also plays a role in what you will pay for insurance. Certain vehicles are more popular among thieves. In 2019, the five most stolen vehicles were the Honda Civic, full-size Chevy trucks, full-size Ford trucks, the Honda Accord, and the Toyota Camry.

Compare Insurance Rates before you Buy
Once you have narrowed down the list of cars you like, contact your insurance company and get insurance quotes on each of them. Insurance costs can vary by a few hundred dollars a year depending on the vehicle you purchase. Always shop for insurance the same way you shop for your new car.

While researching your next car to buy might be time-consuming, you could save a lot of money in premiums each year.

Three Vehicles Consumers May Want to Avoid

3/29/2021

Purchasing a new vehicle is an exciting time, but it can also be very nerve wracking. No one wants to spend a large amount of money on a car that may be unreliable. Consumer Reports magazine has a long history of sharing opinions on vehicles. They recently released their ratings for 2021 vehicles. The following three vehicles had low ratings.

2021 Volkswagen Atlas

There are many mixed feelings about the Volkswagen Atlas. People who have purchased one have reported problems with the climate system, engine minor, exhaust system and the emissions system. Volkswagen’s usual warranty is four years/50,000 miles but because of the known issues, many who purchase it also purchase the extended warranty to have protection for 150,000 miles or up to ten years.

The Atlas does have a huge cabin space and an exterior that is very stylish. However, the concerns with reliability are keeping many buyers wary of purchasing one. Consumers who are looking for this size of vehicle are choosing a Kia Telluride, Mazda CX – 9 or a Hyundai Palisade instead.

2021 Chevy Silverado 1500

The Chevy Silverado and the GMC Sierra both scored the lowest possible score on the Consumer Reports rating scale. Both models have had reported problems with in-car electronics, both major and minor issues with the transmission and engine, brakes and the drive system. Consumers looking for a new truck may want to check out the Ram 1500 or a Toyota Tundra. Both of these trucks have high reliability ratings.

2021 Subaru Ascent

The Subaru Ascent has widely different ratings. It is considered the safest mid-size sports utility vehicle and is a very comfortable on both trails and paved roads. However, the reliability issues worry many potential buyers.

Transmissions problems, in-car electronic issues, problems with the climate system, steering and suspension have all been reported by consumers. For those wanting a SUV of this size, a Toyota 4Runner or the Subaru Outback might be a better choice.
The ratings these models received are based on information gathered by Consumer Reports from people who have purchased the vehicles. These are not personal opinions.

If you are having a problem with any of these vehicles, give us a call at 843-763-5297 or fill out the form on our contact page.

Should you Purchase a Car Online?

3/22/2021

Because of the pandemic, many purchases are being made online now, including vehicles. For many people, buying a car online is a better choice as they dislike negotiating with sales people. For others, the thrill of the hunt is better in person.
Before you decide to purchase your vehicle online, make sure you understand the dealer’s guidelines for purchases made over the internet and consider each of the following as you decide how to buy your next car.

Pros to Purchasing a Vehicle Online

The biggest reason many people are choosing to buy a vehicle online is convenience. It is simple to check a dealer’s stock when you have time and you don’t have to visit several dealerships to see what is available. Most dealers offer drop off options.
Shopping online also allows you to shop after hours.

If you are looking at dealer websites, you have a much larger variety. With online shopping, you can search a much wider area.

If you don’t like negotiating, online purchasing might be the best option for you. Most vehicles online have fixed prices and if you do try to negotiate, it is all done over the internet. You can also compare prices among dealers so you can make the best choice.

Cons to Consider Before Purchasing Vehicle Online

The risk of online scams is enough to keep some people from considering a purchase over the internet. If you do want to shop online, make sure you are looking at the website of a reliable dealership. Look for buying protection and avoid peer to peer payment services.
Dealers may not negotiate prices. If you love to get the perfect deal, you may not have that option shopping online.

If you want to finance your purchase through the dealer, your options may be limited, especially if your credit is not that great.

Test drives may not be available. If you are shopping online for safety from COVID, having to go to the dealership for a test drive might be a deal breaker for you. Some dealers are now offering to drop off vehicles at your home so you can test drive safely. Check the dealer’s website for their policy on test drives.

Only you can decide if shopping for a vehicle online is the best choice for you. Consider the dealers’ guidelines and prices, whether you definitely want to test drive vehicles and your own safety in making your decision. Also, remember that even if you purchase a vehicle online, you will need to visit the dealership or the lender’s office for paperwork.

If you are having a problem with you purchase, give us a call at 843-763-5297 or go to our website and fill out our contact page.

How has COVID Affected Lawyers?

2/23/2021

Like other businesses, law firms are experiencing huge challenges as they learn to adjust and adapt to the COVID-19 pandemic. Many areas of law are struggling while others are in high demand. With most courts closed, business is not going as usual.

When the pandemic first started, many law offices took precautionary steps to protect their staff and their clients. Travel was banned to hot spots, and employees were asked to work from home. When the crisis got worse, staff were let go; many support workers lost their jobs. Law offices were among those considered “non-essential” and had to close for several weeks.

Litigators and those who work on contingency cases were the most drastically affected by the pandemic. Since courts were closed, no hearings, trials, or depositions could occur. Those offices are still facing an uncertain financial future as the crisis shows no signs of ending soon.

Also affected are lawyers who specialize in business mergers and acquisitions. Their clients are too nervous about an uncertain future to make any large financial decisions. Businesses are waiting for the pandemic to be over before spending large amounts of money.

However, there are certain branches of law that are seeing a large increase in clients. Attorneys who specialize in insurance are needed to help clients understand coverage and exclusions. Employment lawyers are advising companies in regards to employee safety and layoffs. Attorneys who specialize in cyber security are in high demand now due to the number of businesses that are working remotely. These three types of attorneys are expected to be desperately needed for the foreseeable future even as the pandemic comes to an end.

Law firms are making changes to how they serve their clients while the COVID crisis goes on.
Many are serving their clients through video calls and virtual meetings. Lawyers are still writing letters and briefs to help their clients.

When the COVID crisis is over, lawyers will, most likely, be deluged by both old and new cases. Most experts agree that the skills lawyers used to weather the pandemic, such as working remotely, using videoconferencing, and keeping a smaller staff, will continue for months or years after the crisis is over.

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