Thinking about Buying a New Car in Dundas? Hurry!

Thinking about Buying a New Car in Dundas? Hurry!

Posted on February 28, 2022

The interest rates being charged for buying a new car in Dundas are at historic lows, but that could change at any time.

While the country is going through the freedom convoy that is protesting government mandates, the Bank of Canada has indicated it will start raising the prime interest rate soon.

Lenders have pre-emptively begun to increase their rates in anticipation of the upcoming increases, so you'll want to considering buying a new car in Dundas soon to save on these low interest rates..

What’s the big deal? It is only a few points

A few basis points may not seem like much when talking about prime interest rates, but you need to look at things from a macro level.

This prime rate is what chartered banks pay to borrow money and lend it out at a higher rate.

When the prime rate increases, it trickles through the economy, so borrowing costs on everything from credit card transactions to mortgages become more expensive.

These rate increases help to slow inflation; however, our economy is fragile, and any shocks, intentional or not, could wreak havoc.

The average car loan is in the range of $50,000 depending on the vehicle, and the term of the loan is 72 months on average.

Given the sums of money involved and repayment terms, even a slight interest rate increase can bite your budget.

This is why we recommend moving forward and purchasing a car before your borrowing costs increase.

Another compelling reason to buy a car sooner rather than later

The pandemic has also caused manufacturing bottlenecks; carmakers are not able to produce enough vehicles to meet global demand.

With a limited supply, the average price of a new car has risen and will continue until the shortage has been addressed.

Importance of having good credit

Having good credit gives you access to low-cost financing, which helps you save money on your new car purchase.

Before going for any test drives, check out your credit score at TransUnion and Equifax. Don’t worry, you don’t have to pay anything for these services.

You could have a 720 credit score with TransUnion and a 680 with Equifax, so you need to check both to make sure there are no errors.

Suppose there are errors inside one or both of the credit reports. In that case, you need to go through the official dispute challenge with the credit reporting agency.

This dispute process could take up to 30 days, so be sure to start taking these proactive steps right away,

Getting the best possible deal in Dundas

To secure the best financing on your new car purchase, you cannot rely on the offers being promoted online, no matter how appealing they may appear.

The only way you can get an excellent deal on your next new car purchase is by enlisting the help of a local car dealership.

The dealership can help you secure the most competitive interest rate and also help you find the perfect car for your needs.

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! 

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