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Why Canadians should trade in their car now

Why Canadians should trade in their car now

Even if you have a driving a car that is relatively new, you should consider trading it in for a new one and save money at the same time.

You may think that we are being silly asking people to trade in their car when they still owe a considerable amount of cash on their vehicle. Rest assured, our Lincoln car loans tean has some evidence to back up why now is the perfect time.

Interest rates are going to rise soon

Interest rates are at historic lows but they are going to start climbing fast. Inflation is the highest it has been since the 1970s and the Bank of Canada does not have many options available to curb inflation.

Your current Lincoln car loan is probably much higher than what you would be paying on a brand new car loan.

One of the barriers is that your car has lost a considerable amount of value due to depreciation so it would not make sense for you to buy a new car because you owe more on the current car than what it is worth.

Here is where things get interesting.

There is a chronic shortage of new and used cars around the world. This lack of vehicles has driven up the price of both new and used cars.

These high prices mean your car may be worth just as much as the price you paid when you first bought it! The only way you will know what your car is worth is to have it professionally appraised by a local dealership. (We will go into detail about appraisals in a bit)

Switching to an electric vehicle

With global warming being attributed to the consumption of fossil fuels, the government of Canada has introduced incentives to help make the purchase of an all-electric vehicle (EV) more affordable.

There are many different manufacturers of EVs to choose from but you should consider buying an EV from a well-established carmaker like Jeep. The last thing you want to do is buy a car only to realize after a few years the carmaker is no longer in business.

Making sure your credit is up to snuff

To take advantage of this opportunity, you will need to check your credit score to make sure you meet the current underwriting requirements.

Lenders all over Canada have tightened up their underwriting requirements, you will need to have verifiable income and a credit score over 680 to access the best interest rates.

In order to get access to the best car loan interest rates in Lincoln, you will not find the lenders online. The only effective way to access these loans is by going to a local car dealership who can also give you a professional appraisal on what your current vehicle is worth.

These dealerships have access to the most competitive interest rates and can give you advice on how to raise your credit score so you will save even more on financing.

Interest rates are going to rise, there is no escaping it but you can save money by taking action now and contacting your local car dealership.

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

Categories: Car Loan

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