Though it’s a great time to buy a new car in Canada, the pandemic has forced many Canadians to reassess their priorities and it may have prompted some people to hold off buying a new car.
While there is a fair amount of economic uncertainty during the short term, there is going to be an unprecedented increase in jobs as the economy shifts from fossil fuels to greener technology.
Even if the car you are driving is “good on gas” with gas prices on the rise and potentially reaching $2.00 per litre, it will get pretty expensive doing even basic activities with your vehicle. Still, car prices are also on the rise and are expected to continue doing so, making it a great time to buy a car if you’re ever planning to get one.
Good news first
We could take a negative spin but instead wanted to show you the potential upside. There is a dramatic shortage of new and used cars available around the world. This shortage is showing no signs of abating any time soon, so you could trade-in your car and get top dollar for it.
You may want to pump the brakes (pun intended) and start shopping around for a replacement car before you sell the current one you have.
Car dealerships are super motivated
The vast majority of car dealerships are working double time trying to hit their sales targets making it a great time to buy a new car. Since the pandemic has wreaked havoc on the economy and supply chain, these dealerships are hit with a double whammy.
First, the inventory of new cars has been greatly reduced as we touched on earlier, and secondly, it is now more challenging to finance the purchase of the new car.
If you have fairly good credit and a stable income, you will be able to get your hands on a more fuel-efficient vehicle and save money in the process.
What is good credit?
If you searched for “what is good credit” you would be overwhelmed with websites all sharing an opinion on what is considered “good credit”.
The truth is it varies depending on what scoring system the lender uses. For example, the credit score to get a new cellphone should be lower than buying a new car since the car is worth a large sum of money.
As a rule, if your score is over 680 then you should be able to get yourself a very competitive auto loan in Burford.
If your credit score is under that number, you can take some proactive steps to bring your score up.
Legitimate ways to raise your credit score
Do not fall for the credit repair services being offered online, most do not work and could hurt your score. Start by using apps like Credit Karma and look at your report for mistakes, if you have any errors then you can get them corrected for free.
The most important thing you can do to help increase your credit score is to pay your bill on time, every time without missing a payment. By making your payments on time, you are going to see your credit score rise steadily over time.
While waiting for your credit score to improve, you can speak with a local dealership that specializes in helping customers with credit challenges.
The dealership will be able to help you find a new car you can accord now based on your income and credit profile. By getting into a more fuel-efficient car at a competitive interest rate you will save money.
As an added benefit, the dealership will be able to take your current car as a trade-in and give you top dollar for it!
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!