Tips for Buying a Car in Stoney Creek after Covid [2022]

Tips for Buying a Car in Stoney Creek after Covid [2022]

Posted on March 15, 2022

We got your back if you need a new vehicle but are unsure how to buy a car in Stoney Creek after Covid. These tips from our loans team are going to help protect you from making the wrong decision and taking on more debt than you can afford.

Assessing your financial health

Car prices are on the move; with the average retail price of a new car well over $40,000 for a basic sedan, you will need to squeeze every dollar you can out of your budget.

Since we mentioned budgets, when was the last time you updated your budget?

Inflation is tracking over 5%, which hasn’t been seen in generations; with prices rising on everything, you will need to allocate more of your disposable income just to make ends meet.

After reviewing your budget and making the necessary adjustments, you need to calculate whether you have enough cash to cover the cost of a new car payment, insurance, and all of the associated costs.

Lenders who offer car loans in Oakville will not approve a loan if you are carrying 40% debt compared to your gross income.

For example, if you were making $5,000 per month, the most you could afford to pay, factoring in the new car loan, would be $2,000.

You do not want to be too close to that 40% mark, so try to either reduce the current amount of debt you are carrying, increase your income by taking on a sideline source of income, or do both.

Taking a closer look at your credit

When you have gone through your budget, the next thing you should look into is your credit score.

This will have a profound impact on your ability to secure financing, so you need to take this step seriously.

The median credit score in Canada is around 660, and you will need a 720 score to access the most competitive car financing.

If your score is under 720 but over 599, you can still get financed, but you will need to work harder.

You should review your credit report and note whether there are any mistakes inside the report. If you notice errors that do happen, they will negatively affect your credit score.

The law requires the credit reporting agency to rectify these errors provided you go through the established dispute process on the agency’s website.

Where to get the best deals on a car in Stoney Creek

If you are serious about buying a a car in Stoney Creek after Covid, your best option is to go through a car dealership in your area.

The dealership will have vehicles in their inventory, so you don’t have to worry about the shortage.

Another key benefit of going through a dealership is their access to the most competitive financing in all of Canada. Even if you have less than ideal credit or financial challenges, the dealership will be able to you a car loan today.

What you need to do is reach out to the dealership and begin reviewing all of the options that are available.

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, or click here to see our cars for sale in Brantford.

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