When Is The Best Time to Buy a Car in Canada?
When Is The Best Time to Buy a Car in Canada?
Posted on January 26, 2023
Prior to the Covid-19 pandemic, there were certain times of the year when it would be the best time to buy a car in Milton. The pandemic threw everything upside down. But there are some strategies you can follow when trying to get a good deal on a new car as our Milton auto loans team explains.
Limited inventory means higher prices
Car prices are rising, and the prices are influenced by the lack of new cars being produced and inflation. Car prices look to be continuing to rise which may not change for a while, making now the best time to buy a car in Milton!
The government has used quantitative easing to keep the economy propped up, but all of that money printing has caused inflation.
Inflation has made food, gas, and just about everything else is more expensive. These inflationary pressures have also impacted car prices.
Since car prices are high, you need to have more room in your budget to cover the added costs.
How soon do you need the car?
If you want to get a new car, it will take some time for it to be delivered. Most people don’t want to wait for a new car; you bought it and want to take it home.
Car buyers who are not able to wait may need to buy a car from the used car market. The number of used cars that are available for sale is low.
This lack of inventory and increased demand has some prospective buyers paying a premium just to get a car.
Getting the financing, you need for the car
There are a large number of lenders who provide car loans in Milton. We are going to review what it takes to get a competitive car loan.
Your credit score is what will make or break your car loan. If your credit score is over 700, you can get the best interest rate in the market. If your score is under 700, you can still get a car loan, but the interest rates will be considerably higher than what a prime rate would be.
Check out your credit score by using Credit Karma; it is a free app available throughout Canada. As a rule, if your credit score is under 620, you are classified as “subprime” and would not be able to buy a new car; your best option would be a used car.
Finding the most competitive lenders
You may have noticed a large number of lenders online, but they will not have the most competitive deal. The best source of auto financing in Canada is through a car dealership.
There are many dealerships in your area, so shop around with a few of them to determine who is going to earn your business.
When comparing the deals, you should look at both the interest rate and the term of the loan. Just remember, the longer the term, the more interest you will pay over the life of the car loan.
Once you have found the dealership that is giving you the most competitive terms, you can move forward and buy your new car.
Buying a new car is exciting, and if you stick with these tips, you will be able to get the best deal possible.
We’d love to help you find the perfect car loan. Simply fill in the form below and we’ll get back to you ASAP!
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