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First-timers guide to buying cars in Canada

First-timers guide to buying cars in Canada

If this is your first time buying a car in Canada, you are truly living in unprecedented times. Interest rates are at historic lows but the trend of low rates is starting to change as central banks around the world are starting to raise their key lending rate.

These interest rates have an impact on all credit products including auto loans, so we need to pay close attention to what is happening in the markets.

Our Paris auto loans team explains how new car buyers can navigate the often confusing world of car purchasing and car loans.

Inventory of new and used cars is drying up fast

The low interest rates have caused a buying frenzy, this spike in demand has already reduced the total number of new and used cars that are for sale.

As the number of new and used cars for sale reduces, the prices for those that are left will start to rise.

The shortages are not going away any time soon, so unless you plan on using public transit you will need to make a buying decision soon. As time passes, the total number of vehicles is dropping and will not improve until the automaker supply chain returns to normal.

All-electric vehicles (EVs)

You may be thinking that the shortage only affects gasoline-powered cars and that there is no issue with buying an all-electric vehicle.

The truth is, there are not enough vehicles to go around so even if you were thinking about buying an EV, you will have a very limited number of cars to choose from or may need to wait months before you can take possession of the vehicle.

Challenges getting your car loan financed

Since this is your first time buying a car, your credit may not be well-established. Your credit score will need to be over 680, to qualify for a low-interest rate car loan. Even if your score is 680, it does not guarantee you will get a great car loan.

The only proven way to get a great deal on auto financing is by working with a dealership.  These dealerships already have the lenders in place and will have cars that you can test drive until you found one that meets your budget and needs.

Where the dealership shines is in helping buyers who had credit issues in the past. While this may be your first time buying a car, you could have experienced credit issues in the past.

The dealership has trained credit experts who can analyze your credit profile, let you know where you can make improvements, and give suggestions on how to keep your credit score high. These experts are going to teach you the importance of always paying your bills on time. Paying your bills on time will drive your credit score up.

Aside, from being able to help boost your current credit score, the dealership will have the ability to find lenders that are willing to give you an auto loan now.

These benefits are going to help make your car buying experience a truly memorable one. What you have to do is pick up your phone and contact the local dealership now, by getting expert help everything should go smoothly.

When you’re ready for a car lease or loan, get in touch with the Paris auto loan experts at Northway Ford for great deals on auto finance.

Categories: Car Loan

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