Inflation has driven up the costs of everything from food, fuel, and everything in between. If you need to purchase a buy a car on a tight budget, finding room in your budget could seem like a daunting task. We will show you some tricks that will help you be able to buy a new car without breaking the bank!
When was the last time you adjusted your budget?
We touched on the impact inflation is having on the economy; inflation has far-reaching implications on everything, including your next car purchase.
Average car prices are at unprecedented highs; this is due in part to the added complexity in manufacturing these vehicles. Inflation is eating away at your buying power, and wages aren’t keeping pace.
Reduce your grocery bill by going to bulk discount stores like Costco.
You will have to pay an annual membership fee; however, there are substantial savings that can be realized.
You will need to sign up for flyers to keep track of sales, it might seem like a lot of work at the start, but the savings do add up.
Review your credit cards
Do you have credit cards that offer rewards for usage? Identify the cards that have the best reward program and no annual fee; remember you want to save money.
If you are carrying any credit card debt, the interest is eating into your disposable income and lowering your credit score at the same time.
Work on getting your overall credit utilization rate to below thirty percent (30%) as soon as you can. If you are paying a high-interest rate, signing up for a low-interest credit card may be the right move but proceed with caution.
Opening too many new accounts at once can have a negative impact on your credit score. Another reason to avoid balance transfers is consumers fall back into debt after they have processed the transfer.
Boosting your income
After you have looked for ways to reduce spending and optimize your budget, you should consider looking for alternative sources of income.
The pandemic has challenged the concept of a “stable” job, and a growing number of Canadians are taking on additional jobs to augment their income. Since you are buying a car, why not drive for Uber or Door Dash?
Door Dash lets you make money doing deliveries, plus you can get your 10,000 steps in with ease!
Working with the right people
The purchase of a new car is a major financial commitment, and you need to work with competent professionals to protect yourself from potential mistakes.
Work with a local car dealership that has a reputation of going above and beyond for their customers.
This dealership is going to help buy a car on a tight budget, help you with any credit issues you may have, and find a great vehicle.
Just knowing you have someone who is an expert will provide some much-needed peace of mind.
We need a car to lead a normal life in Canada, and with a little effort, you will be able to purchase a car without taking on too much debt in the process.
Click here to get approved for your next car loan online today! we have a team of credit specialists ready to help you with buying a car with poor credit score, and will work with you no matter your credit score.
For any questions or concerns, please don’t hesitate to contact us here!