Is it Finally a Good Time to Buy an EV in Canada?

Is it Finally a Good Time to Buy an EV in Canada?

Posted by on Jan 27, 2022 - Archived under Uncategorized

Last year, electric vehicles (EVs) represented 3.5% of all cars sold in Canada. While that may not seem like a significant number, it will grow with each passing year. If you are deliberating on whether it’s a good time to buy an EV or just wait until next time, we will take a deeper dive into the merits and risks.


EV costs are pretty high, even with government rebates


The high costs associated with an EV can be justified with the low prices to recharge the vehicle, but you still need to have the cash upfront to buy the car. There is a limited number of lenders that will finance these vehicles, and they will come with a higher interest rate than a conventional car.


Another potential drawback associated with EVs is the lack of charging stations. If you live inside a major urban area, you will have no problem finding a suitable charging station. Things start to get dicey when you travel to more rural parts of Canada, where charging stations are few and far between.


The cost to service EVs can also be high. There were reports that some of Ev’s replacement batteries can cost in excess of $20,000!


This doesn’t mean it’s not a good time to buy an EV, but the costs cannot be ignored. Inflation is making everything more expensive, so you have to budget these added costs along with the cost of the new car.


How does credit scoring work?


Whether you are buying a hybrid or EV, you will need to get the loan financed. Prospective lenders want to know your credit score, but most people don’t know how credit scoring works.


Credit scores range from 300-850. Depending on which credit reporting agency you go to (Equifax or TransUnion), You need a credit score of over 700 to get the best financing terms on car loans, mortgages, or any other type of financial product.


The exact scoring matrix is not public knowledge, but there are some things that positively impact your credit score. If you pay your bills on time, all of the time, your credit score should be in the high 600’s already. Something that may weigh down your score is if you have too much debt, if you only make the minimum payment every month, your debt load may be too high.


Finding the most competitive car loans


When buying a car, you could apply for loans online, but they won’t be competitive. The only way you will get a great car loan is by going through a car dealership. The dealerships have the best deals in the market and also have an inventory of new and used cars plus EVs, so you have a one-stop-shop solution.


Buying a new car is an exciting time, and personally, we think it is definitely a good time to buy an EV and now that you know how to find a great bargain, it should be smooth sailing. Don’t delay the purchase, though, with the limited number of cars being produced. You could be forced to wait a long time for a new car.


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! 


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