Most financial experts would agree that it is not wise to make impulse purchases however, there are certain instances where you should not hesitate when it comes to saying “Yes”. There has never been a better time to buy a new car in Ontario or anywhere else in Canada. Interest rates are low and there is a limited number of cars (both new and used) for sale.
The limited supply of cars is going to be exacerbated as more Canadians try to buy a newer car only to realize there are none available. We all know what happens when demand outpaces supply, prices rise. If anyone doubts the effects of supply and demand should take a look at the real estate market.
Missing out on a great opportunity
The car shortage is going to last a few years, maybe longer. When the pandemic hit, it shut down the entire global economy and now that the world is getting back to work, all of the pent-up demand for cars is showing its effects on the supply chain.
Interest rates are low and will begin to climb in 2022, this is not speculation but a confirmation from the Bank of Canada.
You should begin buy a new car soon and lock in a low-interest rate otherwise you may regret it.
Take advantage of the low-interest-rate environment
While we are focusing on buying a car, it would be smart to look into refinancing all of your debts with a consolidation loan.
To get a great car loan, you need to have good credit. The average score required for a low-interest rate car loan is 680. You should check out your credit score (don’t worry it’s free) at TransUnion and Equifax right now.
Your credit score is 3 simple numbers that can open up a world of opportunities. There are 3 main rules to follow when it comes to maintaining a great credit score.
Always pay at least the minimum amount due on time. You need to allow a few days for the payment to reach your account so if your payment is due on the 1st of the month, send the payment around the 21st to be safe.
Don’t use more than 40% of your available credit. If you are carrying too much debt, it gives the impression you are a higher credit risk compared to someone who isn’t using more than 40% of their available credit.
Keep tabs on your credit report by using apps like CreditKarma. (Identity theft can wreak havoc on your personal and financial life, if you notice any strange activities on your credit report, you can deal with them immediately)
The most important resource you can have when taking advantage of the great car buying opportunities that are currently available is a great local car dealership.
Your neighborhood dealership has an inventory of cars that you can buy today. You don’t have to shop around hoping to find a great car, the dealership already has the car for you.
The most compelling reason why you should go to a local dealership is their ability to get you a great car loan. When you get financing through the dealership, they are able to get interest rates that you could never get on your own.
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 buy a new car in Ontario today!
For any questions or concerns, please don’t hesitate to contact us here!