If you are driving around any major city in Canada, you can’t help but notice the increase in the number of EVs on the road. What seemed to be a novelty has now taken off and become a driving force (pun intended) in the drive to get away from carbon-based fuel sources.
Our Canada auto loans team explains what to consider if you want to buy a hybrid or EV as they are becoming more popular all the time!
Factors to bear in mind
One of the key things to factor in before deciding to buy a hybrid or EV is where in Canada you live. There has been tremendous progress in the number of EV charging stations across Canada, but there is more work to be done.
If you are living in an urban area like Vancouver, Toronto or Montreal then you should be fine. In the more rural area of Canada, the lack of charging stations will greatly limit where you can go, so be sure to give that some thought. Do not make your decision based on proposed new charging stations but on what is currently in place.
Financing the purchase of your new vehicle
Whether you elect to buy a hybrid or EV, the price of these vehicles is considerable so you will need to get the purchase financed.
You may be under the impression that you can apply for an auto loan online, and you can but that is ill-advised. Putting aside the potential security risk of disclosing your details online, there is no guarantee the websites are going to provide you with a competitive rate or great customer service.
The best option is to contact a local dealership and get them to help out with securing an auto loan. These dealerships already have a vast network of lenders and should have no issues matching you up with a competitive offer.
Dotting your I’s and crossing your t’s
Dealerships can make all the difference if you have or had credit issues in the past. The dealership can explain your situation to the lender and which can turn an automatic decline into loan approval.
You will need to help the dealership by having the right documents. If you are working a traditional job, then your latest salary slip is fine but if you are self-employed then your income tax notices for the last two years and current bank statements.
Along with having the right documents, your credit score has to meet the minimum threshold which can be anywhere from 620-650, if your credit score is over 680 then you will be able to secure a prime interest rate auto loan.
The dealership can help give you tips on how to raise your credit score if you are under the 680 mark but the onus is on you to implement the suggestions, they are simple to follow like paying all of your bills by their respective due dates.
There is no denying that the automobile industry is here to stay but it is evolving. If you are still on the fence, bear in mind that gas prices will soon reach $2.00+/litre so you should call your dealership and book a test drive as soon as possible.
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!