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Buying a Car in Simcoe - Everything you Need to Know

Buying a Car in Simcoe - Everything you Need to Know

The pandemic is weighing down on the economy, people are working from home and adapting during these unprecedented times. If you have a stable income, then you may be able to take advantage of this new economic paradigm.


Our Simcoe auto loans team explains the current car buying climate and offers simple tips for getting a great deal in these changing times.


Very limited supply of used and new cars to choose from


Consumers are scared to buy new cars due to the economic uncertainty, so instead of trading in their car and buying a new one, they opt to maintain their current vehicle.


The average car owner would trade in their car every 4-5 years. Dealerships would take these trade-ins and sell them as used cars either locally or via online auctions. This kept the supply of vehicles relatively stable, so everyone who wanted a car would be able to buy one.


Covid-19 and the supply chain


The economy came to a screeching halt and that had a dramatic impact on the number of car parts being manufactured around the world.


Auto manufacturers were all vying for a very limited supply of components to build vehicles, the net effect is shortages in every industry across the global supply chain.


What does all of this have to do with buying a car in Simcoe?


Since there is a very limited inventory of cars to choose from, the dealerships that are selling them will try to make as much money as possible from each sale.


These tips will help you save money and still get a good car, don’t worry they are simple to follow.


Don’t be shy, give yourself some credit


Do you have good credit? It is considered impolite to talk about money but when buying a car in Canada, your credit score has a material impact on whether you can get a car loan and at what interest rate.


If you are not sure what your credit score is, there are free services like Credit Karma that give you an approximate credit score. Auto loan providers use different credit scoring models than Credit Karma keep that in mind when shopping for an auto loan.


Working on the premise you have good credit (680+ range), the next thing that auto loan providers in Canada will want to know is your financial health.


The number of Canadians who lost their job due to the pandemic has been catastrophic.


Lenders want to make sure your income is stable and sufficient to service your current financial obligations plus the car loan they will offer. You should print out your payslips for the last couple of months and income tax notice of assessment.


If you can substantiate your income and have a good credit score then you will get a very competitive auto loan.


Picking the right car


After you have worked out your auto financing, you should look for a specific car that is suitable for your needs and budget. Look at the reviews that other drivers have posted online to create a shortlist of potential candidates.


When you have determined what make and model of the car you like, look for a local dealership and schedule a test drive. Since you have financing already in place, you have complete peace of mind knowing that if you like the car, you can buy it.


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


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Categories: Car Loan

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