5 Tips to Buy the Car you Like on a Budget

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5 Tips to Buy the Car you Like on a Budget

Posted on May 16, 2022

Ontarians buying a car on a budget have a series of questions they must answer before getting behind the wheel of their new car and riding off into the sunset in 2022.

 

 

Our Waterloo car loans team are going to cover the most important questions so you can make a better-informed buying decision.

 

Crunching the numbers

 

The first step is creating a budget (if you do not already have one) and trying to identify places where you can save money when buying a new car.

 

Most Ontarians have cut out cable and are just using streaming services like Netflix; cable can easily cost you well over $100 a month, which can go towards your new car purchase.

We need you to squeeze as much cash as possible from your budget so you have more car-buying options.

 

The average car loan in Canada is around $500, but that amount will go up when adjusted for inflation. You also need to budget for insurance, gas, and maintenance, to name a few costs.

 

A good ballpark figure to use would be one thousand dollars per month.

 

Assessing your credit

 

After working out the budget, our next item of conversation is your credit score.

 

This is very important because lenders are risk-averse, and your credit score can literally make or break a deal and good credit score is an important factor in buying a car on a budget. To get the very best interest rates in Canada, your credit score should exceed 720.

 

There are free websites like Credit Karma that will give you access to your credit score. If your credit score is 600 or higher, you can get a car loan, but the interest rate will naturally be higher.

 

Even if your credit score is under 600, we can help you identify lenders who will give you a chance.

 

Internal combustion vs. hybrid vs. all-electric

 

 

There is a strong case for buying an all-electric vehicle. Canadian carmakers are in the process of transitioning over to EVs.

 

While most Canadians want to do their part for the environment, these EVs come with a very high sticker price.

 

The high prices and lack of charging infrastructure means that most Canadians living in rural parts of the country should opt for a hybrid like the Jeep Wrangler 4X-E.

 

It combines the best of both worlds and has the reliability that Jeep is known for.

 

Where to find the best deals on a new car in Ontario

 

While shopping online is great when you are doing research when it comes time to actually secure a deal, your best option is to work with a local dealership. The dealerships have a few unique value propositions that you cannot find online.

 

• Access to lenders across Canada, so you are getting the best possible terms, even if your credit score is low. The dealership will have experts show you how to deal with your credit issues.
• The dealership also has an inventory of used and new cars for you to test drive today. There is no substitute for an actual test drive, so you should go through a local dealership.

 

We’d love to help you buy a car on a budget. 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. 

 

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