Before you Buy a New Car in Beamsville, Consider this

Before you Buy a New Car in Beamsville, Consider this

Posted by on Mar 09, 2022 - Archived under Uncategorized

The car-buying market in Canada has entered uncharted territory, and it is not likely to return back to “normal” any time soon. When the pandemic hit, the number of cars being sold came to an abrupt halt. No one knew what was going to happen, so everyone aired on the side of caution, but two years into the pandemic, people needed to move on with their lives.


Lack of inventory and an insatiable demand for new cars


The demand for cars is not limited to just Canada; there are buyers all over the world, including developing economies in Africa, where consumers are now able to buy new cars.


All of this demand is not being met due to a lack of microchips that go into the production of new vehicles. With each passing day, the number of new cars being made is being reduced.


To compound this issue, the global supply chain has massive bottlenecks that must be ironed out, and sadly that will take time.


Unfortunately, since just about everyone in Canada needs a car to lead a normal life, time is the one luxury most of us do not have.


If you thought you would have better luck with the used car market, you are going to be competing with other buyers from throughout the world; the pressure is on to move fast.


Lenders are more cautious now than at any other time in recent history


The Bank of Canada has kept interest rates at artificially low levels to keep the economy moving, but inflation is forcing them to raise the prime rate.


Car loan providers have razor-thin profit margins and cannot afford to take on non-performing loans.


To help reduce their exposure to these non-performing loans, they have raised the minimum credit score needed for a prime interest rate car loan to the 700 range.


This does not mean you cannot secure a car loan; it just means you will need to pay a premium for the benefit of a car loan.


Importance of keeping track of your credit score


Since credit is the lifeblood of our economy, you must keep tabs on your credit score. Both Equifax and TransUnion provide free access to your credit score and credit report. You should check your credit score weekly, and if the score takes a nosedive, you need to find out why.


Where to get a competitive car loan


If you want to buy a new car in Beamsville, your best option is to go through a local car dealership. There are many great benefits that the dealership will provide.


The first is being able to get you approved for the most competitive car loans in the market; this is something no one else is able to provide!


This same dealership also has a variety of vehicles in their inventory that you can buy today.


With the limited number of vehicles in the market, this dealership can seem like a godsend. Now that you know how to buy a car safely, you should contact your local dealership now.


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!


Click here to get approved for your next car loan online today! we have a team of credit specialists ready to help you easily buy a new car in Beamsville, and will work with you no matter your credit score. 


For any questions or concerns, please don’t hesitate to contact us here! 


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