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Considerations when you Buy a Car in Delhi Ontario

Considerations when you Buy a Car in Delhi Ontario

Anyone looking to buy a car in Delhi Ontario this year has their work cut out for them. Unfortunately, the market is experiencing challenges that no one could have anticipated a few years ago, as our car loans team explains and helps you with a solution.

 

Covid-19 and car buying

 

The pandemic is still impacting the quality of life for most Canadians, and while most of the lockdown restrictions are no longer in place, the impact of the pandemic is still being felt far and wide.

 

One of the biggest impacts of the pandemic was the strains being caused in the global supply chain.

 

Carmakers are trying to play catch-up, and while they are making tremendous progress, the demand for new cars is higher than the available supply, so you are going to pay a premium to get the vehicle you want.

 

Inflationary pressures are making the car buying more challenging

 

During the pandemic's peak, the Government printed vast amounts of money, which helped Canadians keep the lights on and food on the table.

 

This money printing has caused inflation to skyrocket and reach unprecedented levels.

 

This inflation is not going away, and the Bank of Canada has proactively raised the prime interest rate to try and slow inflation.

 

However, this rate increase may be a case of "too little, too late "with gas now at $2.00 a litre and the costs of just about everything going up; you need to revamp your budget.

 

The importance of keeping your budget up to date

 

If you have not adjusted your budget, now is an ideal time to do it. The prices of food, energy, and everything else are going to rise.

 

In addition, since the Bank of Canada has recently increased interest rates, it will drive up your borrowing costs.

 

When money is cheap, lenders are more willing to give out loans because the borrowing costs are manageable.

 

Now that the prime interest rate is rising, lenders are now more risk-averse and have raised the minimum credit score needed to secure a car loan.

 

Assessing your credit score

 

You should take a few moments to review your credit score; if your score is under 720, it will be difficult to secure the most competitive terms.

 

The minimum credit score needed for a car loan is 600, but you can get a car loan even if your score is below that level.

 

Best source of car loans in 2022

 

Canadians wanting to find the best car loans in 2022 and beyond must head over to a local car dealership.

 

The dealership has the ability to shop around the entire country and pick the lender that is going to offer you the best deal.

 

Another reason to work with a dealership is their ability to find the perfect vehicle. With the limited supply of vehicles in the market, having the dealership help you will make the entire car buying experience a truly pleasant one.

 

Now that you know what is involved with buying a new car in 2022, you should head over to a local dealership right away. The longer you wait, the more you will end up paying for the new vehicle.

 

We’d love to help you buy a car in Delhi Ontario! 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. 

 

Thanks for reading. Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles! 

 

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    Categories: Car Loan

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