Any Canadian waiting for an opportune time to buy a car should move forward and make a buying decision. This is not a scare tactic; there are some extenuating circumstances that you must take into consideration.
Shortage of cars throughout the world
There is a shortage of new cars; this issue is not limited to just Canada but around the world.
Carmakers were not able to get access to microchips that go into the mass production of new cars.
So, while manufacturers want to ramp up production, the companies that produce these microchips are not able to get them to market quickly.
Bottlenecks in the global supply chain compound this issue, it could take the rest of 2022 for this issue to sort itself out in normal times, but these times are far from normal.
Conflict in Europe has everyone on edge
The conflict in Europe has everyone on edge; NATO has implemented economic sanctions that prevent Russia from exporting oil to the global market. That is, 11 million barrels per day are no longer available for consumers.
OPEC may be able to help, but it will take time for them to ramp up production, and with each passing day, there is not enough oik to meet global demand. This lack of supply and increased demand has forced prices to rise dramatically.
This shortage of oil has impacted the prices of gas here in Canada; with prices over $2 per litre, everyone is going to pay more not just for gas but everything else.
The credit crisis is looming
Another issue aside from the inflationary pressure caused by high fuel prices is the risks presented to the global credit markets.
When Russia defaults on its upcoming debt payments, lenders throughout the world are going to take a hit. In addition, there is a knock-on effect caused by this default where lenders are going to stop issuing loans in developing countries and give preference to safer economies like those found in the USA.
When credit is tight, it makes it hard for everyone, including the average Canadian, to get an affordable car loan.
If this issue was not bad enough, the Bank of Canada is also raising interest rates to offset inflation, but they will need to raise rates aggressively if they hope to slow inflation.
Where to find car loans at competitive prices
There is no guarantee there will be a good supply of cars available in the future, so you should take advantage of this opportunity. This is why we think right now is a good time to buy a car in Canada.
Contact your local car dealership and start reviewing what loan options are currently available.
Even if you have bad credit, these lenders will be able to help you get a car loan. The dealership can give you tips on what steps you should take to rebuild your credit and get the most preferential terms.
No one is happy with the conflict in Europe, but life must carry on, and in Canada it’s a good time to buy a car before the economy could get worse. Your next move should be to contact your local dealership and start reviewing 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 vehicle suited to your needs and will work with you no matter your credit score.
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