Why you should buy a new car now before prices get out of hand

Why you should buy a new car now before prices get out of hand

Posted on September 8, 2022

Although it defies logic, this is the only surefire way to save money in the long run while still getting the car you need today.

Warren Buffet famously remarked that you should be scared when everyone else is greedy and greedy when everyone else is fearful.

Lenders and automakers are all attempting to increase sales as inflation approaches record levels.

The Bank of Canada must raise interest rates until they cause a recession, else, we risk becoming another Sri Lanka.

You should move immediately to lock in the savings before it's too late since lenders become incredibly cautious and charge noticeably higher interest rates once a recession begins.

Factors other than just your credit score to bear in mind

It shouldn't prevent you from obtaining a car loan, even though having a good credit score is crucial and can help you save money when you need to borrow money.

However, if your credit score is poor and you put off buying a car until it is significantly higher, you might find that you end up spending more money overall.

The term for this is opportunity cost.

If you now have weak credit, the interest rate you can obtain might be lower than what you would pay in six months if you had better credit.

You should register with both credit bureaus as an excellent strategy to maintain track of your credit score. You'll always be aware of your position in this way.

Budgeting with a cash reserve

Making a budget with a safety net in case something goes wrong with your money is one of the best things you can do, even if there were no recession.

Our economy is fragile, as Covid has demonstrated, and it doesn't take much to put a stop to things completely.

You might have to take on more debt if your budget is fully funded and you have no additional cash to cover unforeseen expenses.

You may wish to take on a second part-time job to increase your income if you don't earn enough to fund this buffer so that you have money left over at the end of each month.

The best place to find a decent price on a car loan in Freelton

If you believe that the greatest location to find a good vehicle loan is online, you would be mistaken.

The greatest location to find a decent deal on a car loan in Freelton is not online, but rather through a nearby auto dealer. No one else has access to the loans that these nearby dealerships do.

These dealerships can assist you in obtaining a car loan if you have previously been denied one.

The dealership has the resources to explain what you should do if you want to raise your credit score.

Nobody hates to acknowledge it, yet there will be a recession. Get things started by getting in touch with a local dealership right away.

Waiting longer than necessary will be quite expensive in the long run.

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