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Why you Might Want to Buy a Car this Year [2022]

Why you Might Want to Buy a Car this Year [2022]

If you are reading this and have been waiting for the right time to buy a new car, this is the time. There are numerous reasons why you might want to buy a car this year and our Ohsweken auto loans team are going to cover the most compelling of them.

 

Limited number of new and used cars in Canada

 

There is a limited number of new and used vehicles available in Canada. The demand for new and used cars has never been higher.

 

With the limited inventory, the prices of both new and used vehicles have gone through the roof and are going to continue increasing.

 

With each passing day, the prices are going higher, and the options available are going to drop.

 

Inflation is making everything complicated

 

Stats Can just reported that inflation in Canada has increased by 5.1% monthly, and that should come as no surprise; if you have been to the grocery store or gas station recently, prices have never been higher.

 

The Bank of Canada's mandate is to control inflation; one way the Bank of Canada is able to regulate inflation is by increasing the prime interest rate.

 

When interest rates go up, the money supply contracts, and that should reduce the impact of inflation.

 

This can take anywhere from 3-24 months before the effectiveness of the interest rate is felt.

 

When the cost of borrowing increases, it means there is less money in our pockets for discretionary spending.

 

The average consumer is not the only one impacted by these rising rates.

 

Carmakers are forced to spend more for their manpower and raw materials that go into the vehicle. These added expenses are passed on to you, the consumer.

 

Rising interest rates make it harder to get a car loan in Ohsweken

 

Another side effect of the rising interest rates is that borrowing costs will increase. Lenders are forced to pay more to secure the funds for the car loan; the lenders are trying to protect themselves by revising their underwriting process.

 

Lenders will require borrowers to have a higher credit score to qualify for a prime interest rate.

 

Prior to the pandemic, a borrower would be able to get a loan with a 650-credit score, but now they are required to have a 720. If your credit score is under 720, you can get a car loan in Ohsweken, and you should move forward before prices rise any further.

 

Finding the best deal on a new car

 

Most of us love to shop online, but your best option is going through a local dealership when buying a new car.

 

The dealership will know which lenders are giving the best deals throughout Canada, and even if you have credit issues, the dealership will be able to help you get approved.

 

We touched on how tight the car market is right now, so you must contact the dealership today and get the ball rolling.

 

If you wait too long, you are going to end up paying considerably more for a new car, so pick up the phone and call your dealership now.

 

We’d love to help you buy a car this year. 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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