There are some important things you should think about to save money on a new car loan. Are you looking to buy a new or used vehicle, and will it be an EV or hybrid?
We are not trying to overwhelm you with questions, but your options may be limited through no fault of your own.
There is a shortage of vehicles throughout the entire world; carmakers are not able to produce enough vehicles even if they want to, there is a shortage of an essential component, namely microprocessors.
This shortage is compounded by global supply chain issues that will take months, if not years, to work themselves out.
Inflation is taking a bite out of your budget
Car prices are high; before anyone heard the term Covid-19 a new car would set you back $40k-$50k, but those days are long gone.
You can easily spend fifty grand on a car, and that is not even a top-tier model. If you were thinking about saving a few bucks and buying a used car, the median price for used cars has also jumped.
The car shortage is partly to blame for the high prices; however, inflation’s main culprit behind the high prices.
Massive amounts of money have been printed by the government, and this has led to rampant inflation, the Bank of Canada’s target inflation yearly is 2%, but in December, inflation was at 5.1% for the month!
Gas prices are nearing $2.00 per liter, and while we all need to do our part for the environment, you should pick a vehicle that has great fuel economy.
Save money by taking care of your credit
Do you keep track of your credit score? If not, you should because credit is the lifeblood of the economy. Well, technically, debt is what drives the economy, but having a good credit score will reduce the interest you are required to pay on this debt.
To get the best financing terms, your credit score has to be over 720. Sign up with TransUnion and Equifax to find out your current score.
Always pay your debts on time and try to cut down the total amount of debt you are carrying. The golden rule is to reduce your total debt to 30% of the total amount of credit available; when you do that, your credit score will always remain high.
How to save money on a New Car Loan in 2022
You will not be able to find a great deal shopping for a new car online, work with a local car dealership and have them shop around to find you the most competitive car loans.
The dealership will be able to secure terms that you would never be able to access on your own.
Anyone who has credit issues should still go to the dealership; they have credit experts who are available to help you with your car buying journey. Also, with car prices rising monthly, you should reach out to the dealership right away while you still have plenty of cars to choose from.
Click here to get approved for your next car loan online today! we have a team of credit specialists ready to help you save money on a new car loan, and will work with you no matter your credit score.
For any questions or concerns, please don’t hesitate to contact us here!