If you need to buy a car on a tight budget, these suggestions will help make your life easier. Car prices are rising; whether you are looking for new or used, the prices are climbing monthly.
To make things even more challenging, inflation has driven up the prices on everything, which has made budgeting for a new car practically impossible.
We are not trying to spread gloom and doom; we just wanted to let you know you are not alone. Most Canadians are $200 away from being able to pay their bills, but with our suggestions, you will be able to take advantage of this unique buying opportunity and buy a car on a tight budget.
Once in a generation car-buying opportunity
There is a shortage of vehicles, not only in Canada but around the globe. Car dealerships are under massive pressure to maximize their income from every car they have on the lot.
These dealerships make the bulk of their revenue from getting financing for their customers.
In the past, if a person with poor credit or limited funds tried to buy a car, if the dealership was not able to make a deal happen, it was not a big deal. But now, the dealerships need to make the most of every selling opportunity.
While the dealerships are going to do everything in their power to get you approved for a car loan, you can make their job and your life easier by doing some prep work.
Finding room in your budget
Most of us cannot buy a car with the cash we saved; it is just not practical. The average car payment ranges from $400-$600, so you will need to sharpen your pencil and begin looking for ways to save money in your budget.
One way to save is by cancelling your cable subscription and just using streaming services like Netflix. The average cable bill is over $100, so just by removing this service, you are well on your way to being able to afford a car payment.
Giving yourself some credit
You work hard for your money and deserve a break; a silver lining from the pandemic is ultra-low interest rates. If your credit score is over 680, you will be able to qualify for the most competitive car loans; zero percent financing is what some carmakers are offering.
It would be advantageous to start contacting dealerships in your area and begin exploring the options that are available to you.
The car shortage may last well into 2023, and if you need a car now, there may not be any suitable options for quite some time to come. Just about everyone in Canada needs a car, and you can benefit from the low-interest rates, but you should do it before rates start to rise in the middle of 2022.
The average car term is well over sixty months, so while you are under pressure to make a decision soon, you also need to balance that with the knowledge that your car loan will last up to 5 years or longer.
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 and buy a car on a tight budget today!
For any questions or concerns, please don’t hesitate to contact us here!