The average Canadian is really feeling the economic squeeze; inflation is now over 5% monthly and not going to slow down any time soon. Finding a car loan with low income in Canada can feel impossible
So while the Bank of Canada has raised the prime interest rate by 25 basis points, it could take the better part of 12-18 months before that start to yield any material effect.
The interest rate increase from the Bank of Canada was more of a symbolic gesture, sending a message to the market and consumers that we are in for a period of high-interest rates.
However, if you are wondering why this interest rate increase matters to the average car buyer, it will impact the amount of money you need to pay on the car and, frankly, everything else.
Lenders use the prime rate as a benchmark when determining how much to charge consumers for a variety of financial products, from mortgages, credit cards to Smithville car loans.
Since Canadians are carrying a large amount of debt, anything that increases their borrowing costs should be a cause for alarm.
However, the average Canada is roughly $200 away from bankruptcy at any moment in time, so we are skating on very thin ice.
Leveraging your credit score
If you have been responsible with your credit, you will be able to secure a great deal on a car loan with low income.
While car prices are high and you will not be able to haggle, car loan providers are eager to gain market share, which is great news for you.
To access Canada’s most competitive car loans, your credit score has to exceed 700.
You can get a car loan with a credit score over 600, but the interest rates may be more than what you can afford to pay.
Since everything is more expensive due to inflation, your budget is going to be squeezed to its absolute limit.
Prior to the pandemic, the average monthly car loan was in the $500 per month range.
With rising prices, that amount could easily reach $800 per month, and that is not factoring in the price of gas.
Now would be an ideal time to revisit your budget and try to find savings, perhaps by canceling cable and watching more content online.
You may be able to save a few hundred dollars a month by cutting out cable. All of these little savings can add up to serious money that can go towards servicing your car loan.
How to find the best car loans anywhere in Smithville
You will find a plethora of websites offering car loans in Canada, but your best bet is to work with a local dealership.
These dealerships have access to wholesale car loans; this means the loans start at a lower interest rate (wholesale) than what you would find online.
The dealership is able to help you find the perfect car, too; by going through a dealership, you are going to save money and still get a great car, even if you have lousy credit.
You just need to head over to the dealership today and weigh your options.
Click here to get approved for your next car loan online today! we have a team of credit specialists ready to help you find a car loan with low income and will work with you no matter your credit score.
For any questions or concerns, please don’t hesitate to contact us here!