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Rising Car Prices in Canada and what to do About it

Rising Car Prices in Canada and what to do About it

Canadians who have been in the market for a new vehicle should start making decisions soon, or they could find themselves in a precarious situation. With quick rising car prices in Canada, it's important to make a decision swiftly.

 

There are many different variables that you need to familiarize yourself with to understand why “now” is the time for you to buy a car, as our Oakville car loans team explains.

 

Oil prices are tracking higher

 

The conflict in Europe has sent oil prices soaring; this altercation has reduced the total amount of oil that is available.

 

So, while Canada and other nations with vast oil reserves try to make up for the crude oil shortfall, we are all going to feel the pain at the pumps.

 

What is compounding the high crude prices is inflation. Causing rising car prices in Canada (as well as everything else).

 

In addition, since crude oil is denominated in US dollars, it makes it more difficult to purchase oil on the world market.

 

These prices are going to rise, even if there are alternative sources of oil that come online, so you should consider opting for a more fuel-efficient vehicle like the Jeep Wrangler 4x-e plug-in hybrid.

 

Most Canadians do not have access to rapid chargers, and we have very harsh winters, so having a plug-in hybrid is the best of both worlds.

 

You have the cost savings of electric, and when you need extra range, the petroleum powerplant is there for added peace of mind!

 

Central banks are tightening up the money supply

 

Aside from rising oil prices, another reason to move forward and buy a car now is the Bank of Canada tightening up the money supply.

 

This “tightening” is necessary to slow inflation which is approaching scary levels. Central banks around the world pumped cash into the economy to keep things afloat while we tried to get through Covid-19.

 

It appears that the worse is over, but now inflation is wreaking havoc on the economy.

 

Car loan providers are forced to raise their lending rates in tandem with the Bank of Canada.

 

When these rates go up, you are forced to allocate more of your budget towards servicing that debt instead of spending that cash in the economy.

 

These rising interest rates do not only impact Oakville car loans. Mortgages, and all other forms of consumer credit are going to be impacted.

 

This is why you need to get a car loan in place before rates start to skyrocket.

 

Finding the most competitive car loans in Oakville

 

There are many websites that offer car loans online, but most of these websites offer retail interest rates instead of wholesale.

 

You should contact your local car dealership and begin exploring the range of options that are available to you right now.

 

The dealership has access to a massive network of lenders throughout Canada and can get you approved for the best terms based on your credit (even if you have bad credit).

 

The clock is working against you; with each passing day, the risk of interest rates going up increases and the number of available cars decreases, so you should contact your local car dealership now and find out what car loan options are available.

 

We’d love to help you get approved for a car loan. 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! 

 

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