Whether this is your first time buying a car or you have purchased many in the past, we have put together tips that will make your car buying experience a truly memorable one by showing you how to find the best car loans in Canada. The pandemic has changed the world, and we will never be the same again.
A global shortage of used and new cars
One of the first casualties of the pandemic was the automobile industry. When the world was in lockdown, no one was thinking about buying a car; their main focus was keeping their family fed and safe.
Since no one was buying vehicles, Carmakers reduced the total number of vehicles they were turning out. The firms that supplied these carmakers also scaled back their production because they had no one to buy the components.
Covid isn’t going away, so everyone is adapting to a life with the virus. The demand for cars did not go away; it was put on “pause.” Everyone who wants to buy a car is actively shopping, but there are not enough vehicles available for everyone, so prices are climbing anywhere from 5%-10% monthly.
Yes, that was not a typo; the retail prices for new and used cars are rising in excess of 5% per month.
These increases are influenced by a limited inventory and also inflation; with the government printing money like it is going out of style, If the government is not careful, the country could start to experience hyperinflation. But that is a conversation for another time.
Take advantage of low-interest rates
The prime interest rate in Canada is quite low, which is one of the few benefits associated with the pandemic.
To access these low-interest rates, your credit score needs to be well over 650. You can still get a car loan with a 620 credit score, but the interest rates are going to be high.
If your credit score dropped because of the pandemic, you need to take control of your finances. Most Canadians live pay check to pay check and carry excess debt. Carrying debt will negatively impact your credit score, so try to pay down your debt as soon as possible.
How to access the best car loans in Canada
This is by far the best-kept secret when it comes to sourcing for car loans in Canada; you will not find the best deals online, even though the websites claim to have the best interest rates. If you really want a great deal, then you must go through a local car dealership.
The dealership has the best car loans in Canada because they have access to lenders that the average person could never access on their own. When you go through a dealership, they can get you approved even if you have subprime credit.
With the shortage of cars, you will need to most fast, or you may have to wait months before you will be able to purchase a new vehicle. You need to contact your local dealership as soon as possible and take a look at your options; what do you have to lose?
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!