We have come a long way from the old days of kicking the tires on a car before deciding on whether to buy it or move on to the next. With the internet, you can digitally “kick” tires from the comfort of your home.
We asked our auto loans team to come up with some practical tips for when you buy a car in Milton to ensure you get the car you need at a price that’s right.
Car prices have shot up in recent years
Car prices have risen dramatically, especially throughout the pandemic. You will need to roll up your sleeves and do some research if you want to get a bargain. Our tips should make the process easier.
Used or new
The number of used cars that are available for sale has plummeted in recent months. Consumers do not feel confident enough to buy a new car so they are holding on to the current car until they feel more financially secure.
Whenever a person does want to sell their used car, they could try to sell it themselves or go to a dealership. Dealerships are desperate for inventory, so they are willing to pay a premium for used cars to get them on their lot.
If you buy a car in Milton that’s used, the benefit is that it will not lose its value quickly as a brand new car does during the first year.
The moment a person drives a new car off the dealership lot, it has lost value. The MSRP of the car takes into consideration the materials and labor to build the car, but there are additional costs added on to it like the salesperson’s salary and business running costs.
If you are comfortable losing thousands of dollars then a new car may be the way to go but you should seriously think about buying a used car and save some money.
Having good credit makes all the difference
Canadian auto lenders are very concerned about the current state of the economy and have tightened up their lending to avoid undue risk. This means that individuals with credit issues may not be able to buy a car in Milton at all.
Take a moment to review your current credit score to see where you stand. Any score over 680 and you should be able to qualify for very competitive terms. Even if your score does not reach the 680+ range you may be able to secure financing provided your score is at least 650.
When you buy can impact the price
Dealerships are under constant pressure to sell vehicles as quickly as possible. With each passing month the vehicle that is not sold incurs financing costs, yes, you read that correctly.
Dealerships have to pay a financing charge to have vehicles on their lot. These fees are usually recouped if the car is sold quickly but if the car has been there for months or even years the dealership will have to do something drastic to sell it.
You should visit all of the dealerships in your area and try to spot the cars that have been on the lot for quite some time. Those are the cars that you should be able to get a significant discount on the asking price.
This strategy has been very effective for Canadians trying to get a bargain on a new car and it will work for you. Just make sure you have good credit to qualify for financing and everything else should go smoothly.
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!
For any questions or concerns, please don’t hesitate to contact us here!