Mistakes to avoid when buying a car in Milton
Mistakes to avoid when buying a car in Milton
Posted on June 20, 2022
There are some important car-buying mistakes you need to avoid when shopping for a new car in Milton.
These tips are designed to help first-time and long-time buyers alike, so stick around with us, you will definitely save some money.
Interest rates are rising, so now is the time to begin shopping
The prime interest rates in Canada are increasing and will continue to do so well into 2023. If your current car loan is nearly paid off or you need a newer vehicle, then you must start looking for a car loan today.
Lenders have become very skittish about issuing loans and have started to tighten their loan underwriting processes even further. In the past, you could secure a decent car loan with a 650 credit score, but those days are long gone.
If you want to get a car loan with the most competitive terms, you need a credit score of 720 or higher.
Not sure what your credit score is? Check out free credit monitoring apps like Credit Karma today.
You can still get a car loan in Milton if your credit score is over 600, but you must temper your expectations; the interest rates being levied will be higher.
Gas prices and inflation are getting out of hand
Something that will impact your car-buying experience is how inflation and gas prices are out of whack. The last time you bought a car, inflation was probably around 2%, and gas prices were in the realm of reasonable.
Flashforward into 2022, gas prices will soon reach $3.00 a liter, and inflation is in the 8% range and increasing monthly. So, no matter how much you tighten your belt, the costs of everything will creep into your household budget.
You need to find a vehicle fast before you are priced out of the market, and you need a vehicle that is fuel-efficient and affordable.
Hybrid or EV
Something you can do to help you save money on the upfront and long-term costs of a new car is buying either a hybrid or EV. With the hybrid, you enjoy the savings that come with electric and the familiarity of gas-powered.
You could opt for an EV and become totally independent of gas prices. The major carmakers in Canada, like Ford and Jeep, are coming out with some great EVs that will suit your budget and driving needs.
Where to find the best car financing in Milton
Whether you are buying an EV or hybrid, you need to stack the deck in your favor, and the simplest way of doing that is with the help of a local dealership.
The dealership will have an extensive inventory of new and previously owned EVs and hybrids for you to drive.
These dealerships will also be able to get you approved for a car loan at the most competitive terms possible; even if your credit is lousy, they can get you approved.
You should contact the dealership today, though; with rising interest rates and tighter loan underwriting, it is just a matter of time before you are priced out of the market.
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.