How the European Conflict is Affecting Car Buying in Canada
How the European Conflict is Affecting Car Buying in Canada
Posted on March 31, 2022
The European conflict is affecting car buying in unfortunate ways in Canada, so we are going to help you make sense of the market and find a great deal in the process.
The car buying market before the conflict in Europe
Less than a month ago, the biggest newsmaker in the automotive world was a lack of microchips.
Carmakers were unable to get the processors they needed to produce the vehicles.
Unable to produce enough vehicles to meet demand, car buyers had to wait for weeks and, in most cases, months to get their new vehicle.
The shortage of microprocessors was due to the bottlenecks in the global supply chain.
How the European conflict is affecting Car Buying in Canada
Russia has been hit with massive economic sanctions that would bring most nations to the brink of destruction.
Russia exports 11 million barrels of oil to the global market daily, but the sanctions now prevent this oil from coming to market.
This loss of supply has caused a cataclysmic shock in the global economy; everyone is dependent on oil.
The price is set in US Dollars globally and is currently around $109 per barrel.
In Canada, the average cost of a litre of gas is around $2.00, and that is going to increase as the oil reserves are depleted.
Venezuela is being asked to offer more oil, and OPEC has also been asked, but this will take time to produce relief.
Fuel prices impact everything in Canada because we ship everything by truck, increased fuel prices are passed on to the average consumer.
Higher prices mean less disposable income for Canadians, which means less spending in the economy.
As the amount of money in the economy is reduced due to higher fuel prices, it could lead to a recession if not properly managed.
The Bank of Canada has tried to slow inflation by increasing the prime lending rate, but that is also making it harder for the average Canadian to access affordable car loans.
Importance of acting fast before costs rise
Even if you have credit issues, you should move fast and try to secure a car loan. Lenders are fighting tooth and nail for new customers.
With interest rates rising, it is harder for lenders to generate a profit because their borrowing costs are increasing.
Your best option to accessing Kitchener car loans with bad credit is by going through a local dealership.
The dealership will be able to shop around and identify which lender is best suited for you. When you work with a local dealership, they have credit experts who can analyze your situation and let you know what steps you must take to repair your credit.
If you stick with their suggestions, you will be able to save money on your next car purchase.
As you can see, there is a tremendous amount of anxiety in the global marketplace, and while there is nothing we can do about the conflict in Europe, there are steps you can take to help protect yourself from the financial fallout from this alteration.
We’d love to help you find rebuild credit score and buy a new car. 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!