The impact inflation is having on Canadian car buyers

The impact inflation is having on Canadian car buyers

Posted on September 20, 2022

All of the attention during the Covid-19 epidemic was on the return of the "status quo." They weren't overly concerned about the inflationary impacts that the Trudeau government's massive infusion of funds into the economy would have on the economy as a whole.

We now have to cope with inflation, which is at an all-time high, while we get to know each other through Covid.

Spending mindlessly is bad enough, but the carbon tax implemented by the Trudeau administration makes it prohibitively expensive for most people to purchase gasoline and other fossil fuels.

Drivers in Canada are forced to purchase a hybrid or electric vehicle (EV) and incur further debt in order to travel to work because of this catch-22.

In Canada, everyone is struggling to make ends meet

In Canada, the average person owes $1.80 for every $1 they make. That's bad enough, but it's even more difficult to pay off existing obligations now that the Bank of Canada is boosting interest rates to contain inflation.

You not only have to pay more to settle your current debt, but you also have less money available to spend on food.

Because of inflation and high gas prices, it is becoming more difficult for industrious Canadians to put food on their tables.

Turning the odds in your favour

Even though this is a difficult scenario, if you are prepared to act swiftly, you might be able to take advantage of it.

Providers of auto loans are working to close as many new transactions as they can since they are aware that their operating costs are rising.

If they pay off their loan before the next interest rate hike, some borrowers with less-than-perfect credit may be able to secure a fair bargain.

To find out how you're doing, check your credit report. You are in the medium range if your credit score is between 620 and 660.

You're doing fantastically if it's 680 or higher. You'll be able to find the best bargains if it's 750 or higher.

There are still great offers available, so you should try to buy a more fuel-efficient automobile even if your credit is bad.

Where to look for lenders willing to provide you a decent deal

Although shopping online is simple, you won't find a good offer. To find out what offers you can get based on the amount of money you now have, you should phone your neighbourhood vehicle dealership right away.

Since the dealership is constantly disbursing loans for brand-new vehicles, they will be aware of which lenders in Canada offer the finest conditions. The additional benefit of working with the dealership is that they can represent you in negotiations with the lender. If you are self-employed or have poor credit, this is quite beneficial.

You have a lot to consider, but you don't have time to mull it over. Instead, make an immediate contact to your nearby dealership and begin exploring your options.

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