This is how you Save Money Buying your Next Car in Ontario

This is how you Save Money Buying your Next Car in Ontario

Posted on March 9, 2022

The prices of everything have gone up due to inflation caused by the pandemic. So, while the pandemic has been factored into the stock market, the lingering effects of Covid are still visible everywhere you see people wearing masks.

The price of new cars has experienced the most dramatic price increase, and it will not come down for years to come. So we think it's a better time than ever to provide some tips to help you save money buying your next car in Ontario

One of the reasons for the high prices is the global demand for cars; economic fundamentals state that when demand is high, and supply is low, prices will rise.

For the first year of the pandemic, most consumers held off buying a car because no one knew where the economy was going.

This pent-up demand has spilled over into year two of the pandemic and has gained momentum. People need a car in Canada to live, and their current vehicle may no longer be an option.

What compounds the issue is a shortage of microprocessors used to make the key components needed to build these vehicles.

This is not a simple problem where you can just throw money at it, it will take time for things to stabilize, but that doesn’t solve your car buying problem right now.

Having great credit is key to saving money

Having great credit can make your life more enjoyable, at least from a financial setting. If you have credit issues, it drives up your borrowing costs and can even limit you on where you work or what type of home you can buy.

If you are not monitoring your credit often, you should seriously consider signing up for Credit Karma right now (go ahead, we can wait until you are done).

What is your credit score?

If you are in the 700 range or higher, congratulations, you are in great shape.

When you have a high credit score, you can get the most competitive car loans, which helps keep your car payments affordable.

The average car loan is 72 months, and in the range of $45,000, so we are talking about significant sums of money. Therefore, anything you can do to keep the interest rate down is worth consideration.

If your credit is in the low to mid 600’s, you can still get approved for a car loan, but the interest rates will be higher.

Although your credit score is not set in stone, you can take some measures to improve it by paying down your debts and always making your payments on time.

Buying a car with subpar credit

We touched on how you can improve your credit, but you can still get a Paris car loan if you need a car today.

You need to look for a neighborhood dealership that will take the time needed to know you and your personal situation.

These dealerships have a network of lenders that specialize in providing loans to people with credit challenges. If you want to buy a car, this is your path to success, but you must take the first step and reach out.

We’d love to help you save a money buying your next car in Ontario. Simply fill in the form below and we’ll get back to you ASAP! 

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