Should you Buy a Car during the Omicron Threat?

Should you Buy a Car during the Omicron Threat?

Posted on January 3, 2022

Just when you thought things were starting to stabilize, the Omicron variant has shown up and is creating a considerable amount of uncertainty throughout the world. If you were thinking about buying a car but waiting for the most ideal time, now may be your only opportunity to get a good deal before things take a turn for the worse. This article will explain whether or not you should buy a car during the Omicron threat in Canada.

No matter where COVID takes us next, we'll always be open online, so stay safe at home and check us out here!

Reasons why now is the right time to buy a newer car

With the uncertainty, your first reaction may be to not buy a car during the Omicron threat and hold off making any major buying decisions until after the pandemic is over, but these variants keep popping up, so the pandemic may last for quite some time.

Interest rates are going to skyrocket

We have been living with ultra-low interest rates for quite some time but inflation is at an all-time high.

The only way the Bank of Canada is able to slow inflation is by raising interest rates, this is not a matter of “if” but “when” and the “when” is very soon.

If you are in the market for a newer car, home, or just want to consolidate some debt, you must start exploring your options ASAP.

Our Milton auto loans team are going to focus on buying a car for the remainder of this conversation but you should take a hard look at all of your consumer debts.

Credit score crash course

Most of us never studied finance in school, so we are going to give you a crash course in credit scoring.

Your credit score is a 3 digit number that ranges from 300-850 depending on what scoring model is being used.

To secure the most competitive interest rates in Milton, you need a credit score well over 680. The average credit score in Canada is in the 650 range.

There are services that ask you to pay to access your credit score but apps like Credit Karma will let you review your credit score for free.

If your score is over 680, you should be able to get a very competitive interest rates on a newer car. One of the most common challenges that drivers experience when looking for a newer car is the lack of inventory.

There is a shortage of new and used cars all across the world. With each passing day, the total number of cars that are available for sale is being reduced further.

Making the most of this once in a generation opportunity

If your credit score is below 680, you should try to buy a car during the Omicron variant because car shortage is only going to get worse.

You should go to a local car dealership and explore your options with them. These dealerships have access to the most competitive interest rates in all of Canada plus they can give you helpful advice on how to safely raise your credit score.

You must take action quickly though, once the interest rates start to rise, lenders will most likely raise the minimum credit score required for a car loan. The higher interest rates coupled with limited supply of newer cars is why you must take action “now”.

When you’re ready for a car lease or loan, get in touch with the Milton auto loan experts at Northway Ford for great deals on auto finance.

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!