Why Canadians across the country should buy a car now

Why Canadians across the country should buy a car now

Posted on December 6, 2021

If you are like most Canadians trying to determine when is the best time to buy a new car, now is the time to make a move. There are a few reasons why we believe now is the time for you to take action. Our Copetown auto loans team will also give you advice on how to get a low-interest rate car loan.

Debilitating shortage of new and used cars

The number of used and new cars in the global market is very low. Used cars are selling at a premium because the traditional sources of used cars have dried up as consumers are now electing to fix their cars instead of upgrading to a new one.

Carmakers have also experienced bottlenecks in their supply chain which has limited the sheer number of new cars they can turn out.

These supply chain issues are due in part to the pandemic and the world economy trying to get back up to speed.

Interest rates are at historic lows

Pent-up demand and low-interest rates have made buying a car in Canada very easy provided you can qualify for a car loan in Copetown.

While interest rates have been at historic lows for a very long time, it seems the party is coming to the end as the Bank of Canada announced rate increases in the new year.

With rising car prices and interest rates, if you don’t act soon, you run the risk of either being priced out of the car-buying market completely or buying a car that is not suitable for your needs.

Qualifying for a car loan in Copetown

To qualify for a Copetown car loan in this post-pandemic economy, your credit score will need to be over 680, if your credit score does not reach that level, you will be able to get a car loan but the interest rates will not be very competitive.

You can get access to your credit score for free, some websites and applications give you access. Make it a habit to check your credit score at least monthly, so there are no surprises that pop up.

If your score is under the 680 goal, you must take proactive steps before your score drops even lower.

Best way to raise your credit score

Start by looking over your credit report to see whether any accounts have overdue amounts. If an account is overdue or goes into delinquent status, it has a detrimental impact on your credit score, so repay those debts as quickly as possible.

In a situation like this, you should reach out to a local car dealership and discuss your options with them in detail.

The dealership has experts in-house that can explain how to raise your credit score but they also have lenders that work with people who have credit challenges.

By sticking with our advice and reaching out to a dealership ASAP, you will be able to buy a new one and not have to overpay but the onus is on you to reach out before your credit score drops any lower.

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