The car-buying market in Canada has changed dramatically in the last couple of years. Our car loans team explains what to do when you buy a used car in Cambridge this year.
Covid-19 created a unique set of challenges that no one could have predicted. While we are trying to get back to some semblance of pre-pandemic normalcy, there are some new challenges you need to be aware of when shopping for a new vehicle.
Car prices have increased substantially since the onset of the pandemic
The average price of a new car in Canada can easily set you back $50,000. There are a variety of variables that are pushing prices higher but the main culprit is inflation.
At the start of the pandemic, the Government of Canada ordered everyone to stay home for two weeks to flatten the curve; most Canadians did not have the economic resources to do that.
The CERB was implemented to help everyone survive while we battled Covid-19; the CERB and subsequent programs to keep Canadians afloat seemed like a godsend, but it had a side effect: inflation.
A Government cannot print money with reckless abandon and not expect it to have consequences, the Weimar Republic is an example of want printing too much money can do to an economy.
Inflation has not only increased the price of cars, just about everything else has become more expensive.
These higher costs are taking a bit out of your budget, making it harder to pay for things like a new car.
How to stretch your dollar even further
If you have not revamped your 2022 budget, now is the time. With rising costs, you will need to reallocate additional funds for fuel and food.
Even if you aren’t currently driving a car, the rising costs of fuel will impact how much you pay for groceries, so expect to pay 5%-10% more at the checkout, maybe more depending on where you live in Canada.
Interest rates are on the move, and it’s in the wrong direction
The Bank of Canada had the tricky job of keeping inflation at 2% and the money supply flowing to keep the economy going.
Now that inflation tracked past 5% just last month, we can expect significant prime interest rate increases that will happen in quick succession.
With every increase, your borrowing costs go up from mortgages, credit cards, and, yep, you guessed it, car loans!
Even if you have fantastic credit, the interest rates are going to start climbing fast, so you cannot wait any longer to buy a car.
How to get a good deal on a used car in Cambridge
There are still good deals to be had when you buy a used car in Cambridge, even if you have credit issues.
You will not find these deals online, even though the advertisements claim otherwise.
Instead, you need to visit your local car dealership and find out what loan options you qualify for based on your financial situation.
The dealership is able to help you, even if you have credit challenges, but you need to take the first step and contact them.
2022 is shaping up to be a challenging year, with Omicron, the conflict in Europe, and rising prices at home.
Still, life must carry on, and in Canada, you need a car to lead a normal life, so contact the dealership asap.
Fill in the form below to get approved for a car loan! we have a team of credit specialists ready to help you buy a used car in Cambridge suited to your needs and will work with you no matter your credit score.
For any questions or concerns, please don’t hesitate to contact us here!