How to Buy New a Car Amid High Car Prices in Canada

How to Buy New a Car Amid High Car Prices in Canada

Posted on May 17, 2022

Those wanting to buy a car must get up to speed on the current high car prices in Canada. These rising prices are a symptom of inflation which has reached a generational high.

We have not seen inflation at this rate since the early 1990s; that was way back when the SNES first hit the market for any gamers out there.

Inflation has driven up the costs of food, fuel, and cars, amongst other things.

Source: fortune.com

To combat these rising costs, the Bank of Canada has the challenge of trying to slow down the rapid spread of inflation.

Unfortunately, the only tool the bank has at its disposal is increasing the prime interest rate. This prime rate is what all chartered banks and financial companies use as their benchmark rate when quoting loans.

As these rates increase, it will directly impact how much you have to pay to service not only your Caledonia car loan but all other types of credit.

Reviewing your credit score and income

We have established that car prices and interest rates are tracking higher; if your income and credit score are stable, you can still get a good deal.

The first step is to establish a baseline by checking your credit score; you can sign up with Equifax and TransUnion to get free access to your credit.

Equifax Credit Report

Once you have access to your free credit score and report, you can take steps to improve your score.

The best way to keep your credit score high is to stay current with all of your debts, even if it's only making the minimum payment by the due date.

You also need to reduce the total amount of debt you are carrying. These two simple things will help keep your credit score in positive territory.

To get the best interest rates, your credit score has to exceed 680; then, you will qualify for prime rates.

Should your credit score be under 680, you can get a car loan, but you should not try to get a loan without first speaking to the experts; we will show you how to access those loans in a bit.

How to find the best deal on a car loan anywhere in Ontario

Regardless of your credit score and income, if you want to get the best deal on a car loan during high car prices in Canada, then you should go through a dealership in your community.

The dealership is able to get you approved by leveraging its existing relationship with lenders throughout its network.

As a result, these dealerships can access lenders that the general public cannot. Another reason why you should go through a local dealership is their in-house credit experts; these experts are well versed in all of the best practices when it comes to rebuilding your credit.

These credit experts will show you what steps need to be taken in order to rebuild your credit score.

Now that you know how to secure a Caledonia car loan at the most competitive terms reach out to the dealership today and get the ball rolling. This will be the best decision you have made this week.

We’d love to help you buy a car during these high car prices in Canada. Simply fill in the form below and we’ll get back to you ASAP or see our selection of new and used cars at our Brantford dealership. 

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