Important financial decisions to make when buying a new car in Ohsweken
Important financial decisions to make when buying a new car in Ohsweken
Posted on September 1, 2022
Let's say you need a new car and are trying to decide whether to put your tax refund toward a down payment or into your RRSP.
Then you should think about getting a new car.
We are not tax experts, and everyone's situation is different, so we talk in broad terms. But if you give us the benefit of the doubt, you will see by the end of this why it makes sense to buy a new car now.
This year, both prices and interest rates will go up dramatically
Most of us thought that life would go back to normal once the pandemic was under control.
Even though the pandemic restrictions are starting to go away, the economic effects of Covid-19 are still being felt.
Keeping the economy going while everyone was locked down was one of the hardest things to do during the pandemic.
The government of Canada came up with a number of programs to help Canadians get money for food, housing, and other basic needs.
Small businesses also benefited from these programs.
At the moment, we don't know how much money was set aside for Covid-related programs, but it's in the hundreds of billions, and trillions with a “T”.
Up, up, and away!
This spending led to inflation, which is now hurting us. With inflation at 5.1% per month, prices for everything from food to gas are going through the roof.
The Bank of Canada's only chance of slowing down inflation is to raise the prime interest rate.
When the rate goes up, it will make it more expensive to borrow money for things like mortgages, credit cards, and car loans.
We expect interest rates to go up a lot this year, so you should lock in a low-interest car loan before that happens.
The money you would save on a low-interest car loan compared to what is coming down the pike would be reason enough to use your tax refund as a down payment.
Canada's car prices are also going up because of inflation. While inflation hasn't affected the prices of cars that are already on the market, it will have a big effect on the prices of new cars that come out in the summer and fall.
The car companies can't pay for this because everything is getting more expensive, and the consumer will have to pay for it in the end.
Where to get the best deal on a car, no matter what your credit score
No matter how good or bad your credit is, the idea is that you want to get the best deal on a car. If that's the case, you should go to a car lot near you.
They'll help you fix any problems with your credit so that you can get the best loan terms in the future.
Also, the dealership will help you find the best loan you can get right now so you can buy a new car before interest rates start to go up.
As you can see, it makes sense to call your dealership right away and start looking at your options for buying a car.
When you’re ready for a car lease or loan, get in touch with the Ohsweken auto loan experts at Northway Ford for great deals on auto finance.