Are you thinking about buying a car in Hamilton in 2022? The pandemic has changed the entire car buying experience, and we will give you the information needed to make a better-informed buying decision. The first thing you need to bear in mind is the limited number of new and used cars that are available to buy throughout Canada has diminished.
Causes of the vehicle shortage
A few things are causing the vehicle shortage, namely a drastic reduction in the number of microchips that are being manufactured. Without these microchips, car manufacturers are not able to produce enough vehicles to satiate demand.
The shortage of microchips is also being compounded by the supply chain bottlenecks that are wreaking havoc on the global economy. This issue could take a year or two before things return to pre-pandemic production levels.
Even if you could wait for the supply chain issues to sort itself out, you should move forward and buy a car in Hamilton ASAP.
Reasons Canadians should buy a car now
Interest rates are going to start rising, and when they do, your borrowing costs will also go up. The Bank of Canada has kept interest rates at artificial lows to prop up the economy, but the side effect of printing all that money is inflation.
Right now, inflation is at 5% per month when the Bank of Canada’s mandate is to keep inflation at no more than 2% per year.
Inflation and rising interest rates will make it harder for you to buy a vehicle in the future, especially with all of the economic instability being experienced due to the conflict in Ukraine. If you act now, you can save money and find a suitable vehicle, but you will need to be proactive.
Reviewing your finances
Now that you understand why you need to buy a car in Hamilton in 2022, it is time to shift your focus on your finances. The pandemic has made lenders more conservative, so you will need to have all of your financial ducks in a row.
The first thing that lenders are going to focus on is your credit score; you need a credit score over 700 to qualify for prime interest rate.
So, if your score is lower than 700, you will be able to get a car loan, but the interest rate is going to be higher than prime, but it will still be competitive.
Best place to access the most competitive car loans
To access the most competitive car loans, even if you have poor credit, you should reach out to a local car dealership.
The dealership has access to all of the lenders in Canada; these dealerships will be able to shop around with all of the lenders until they find the one with the most competitive offer.
In addition, the dealership has credit experts who can give you tips on how to rebuild your credit, so you will always have access to the most competitive terms.
This is why you should reach out to the dealership as soon as possible before the inventory of available vehicles is reduced.
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 car in Hamilton in 2022, and will work with you no matter your credit score.
For any questions or concerns, please don’t hesitate to contact us here!