The Canadian car market is going through a dramatic change and this has created some great buying opportunities. To fully appreciate the opportunity that is in front of you, there are a few things we need to discuss.
Fortunately, our Milton auto loans team has been doing a lot of work in the market and offer some useful tips for getting a great deal on finance.
Lack of new and used cars
There is a chronic shortage of new and used cars that will take years to resolve itself if not longer. The reasons for this shortage are complex so we won’t dwell on them but rest assured there is a limited inventory of cars for sale not only in Canada but around the world.
Since there is a shortage, the average price of a new or used car has risen and continues to rise. These price rises are exacerbated by high inflation that is hitting the Canadian economy pretty hard.
If you can buy a car, you should because the inventory of available cars will be further reduced as more people need to replace their current vehicles.
Tough auto loan underwriting requirements
The majority of lenders have started raising their benchmark interest rate to match what the Bank of Canada is doing. Not only are lenders charging higher interest rates, but they are also raising the minimum credit score required for a prime rate car loan.
If you want to get the best interest rates, your credit score will need to be 700 or even higher.
Securing a car loan with less than stellar credit
Should your credit score not reach 700, you can still get a car loan in Milton. Some lenders target customers with credit issues but the interest rates are going to be higher.
You should work on repairing your credit score, chances are that the reason your score is low is due to something simple like a missed payment.
Missed payments are the primary reason that a person will have a low credit score so you should take precautions to ensure you never miss a payment ever again.
This would be a great time to pay down any excess debts you may be carrying. Too much debt is another reason why a person will have a low credit score, so you should do everything you can to pay down those debts.
The best source of car loans in Canada
If you want to find the best source of car loans in Canada, you are not going to find them on some websites online. Hands down, the best source of competitive car loans is by going through a local dealership in your area.
The dealerships have access to an extensive network of lenders that cater to a variety of different customer financial profiles. Dealerships have access to wholesale interest rates and can negotiate the most competitive rates based on your situation.
These dealerships also have experienced credit experts on hand to help you repair your credit. Anyone who wants to buy a new car should reach out to a local dealership, this is by far the best way to get a car loan in Canada.
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!