388 King George Rd, Brantford, ON, N3T 5L8
My Garage

How high gas prices make buying a car easier

How high gas prices make buying a car easier

The title may sound confusing; how can high gas prices make buying a car easier? Well, in Canada, we need a car to live a normal life; there is no getting around that reality.

But most of us are driving vehicles that are at least a few years old.

The majority of Canadians pumped the brakes (pardon the pun) on making any major purchases during the pandemic. Now that the lockdowns are over, it is time to revisit some major decisions like switching to a new car.

You have the choice of a conventional internal combustion engine (ICE), a hybrid that combines the best of both electricity and gasoline, or an EV.

Gas prices are at unsustainable levels; most Canadians have put off going on vacation or long road trips because gas prices are just too high.

These high prices are caused by inflation but also carbon taxes put in place by the federal government; these taxes make it practically impossible for gas refiners to pass along any savings to the average consumer.

The days of low-interest rate car loans are fading fast

Canadians who have the means to switch to more efficient vehicles are taking the leap and doing it in droves.

You may think that the economy is fragile, and with a recession looming, now is not the time. While that is prudent thinking, you must perform an opportunity cost comparison.

The recession could last months, if not years; with gas prices rising, will your current vehicle be able to last without any major repairs?

Even if the vehicle is reliable, what about rising fuel prices eating into your budget?

This is a rare opportunity where you can lock in a low-interest rate car loan before things get out of hand and save money, but you need to move fast.

How to qualify for a competitive car loan in Halton Hills

Lenders are eager to underwrite new car loans and increase the book value of their portfolios.

The only caveat is they want borrowers with the right financial profile, namely stable income, and high credit scores.

To tap into the best interest rates, your credit score should be in the 700 range; you may be able to get approved for a prime rate car loan with a 680, but there are no guarantees.

Aside from having a high credit score, your income should be stable. If you have recently started a new job, most lenders now want 6-12 months of employment before they will sign off on the loan.

The best place to get a car loan in Halton Hills

We touched on why now is a good time to buy a new car; now we are going to share with you the best place to get a car loan.

You should visit your local car dealership and have them help secure your auto financing; the dealership knows all of the lenders and will be able to do all of the heavy lifting; you just need to contact the dealership now.

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

Categories: Car Loan

Tags: ,