Canadians who want to buy a car in Guelph after COVID-19 have a unique series of challenges in front of them.
The majority of restrictions are just starting to be lifted. Still, the economy is now facing a unique series of challenges, the supply chain has been stretched to the absolute limit due to Covid, and now the altercation in Europe has caused all sorts of uncertainty.
Supply chain induced inflation
Along with the supply chain issues being faced, the economy is experiencing inflation rates of 5.1%, which is making everything more challengin, including being able to buy a car in Guelph after COVID-19.
The Bank of Canada is trying to combat inflation by raising the prime interest rate; when this rate increases, it makes everything more expensive, including the cost of a Guelph car loan.
Car prices are rising, and so too are the interest rates for car loans, so you need to start exploring your financing options right away.
The importance of having a good credit score
Everyone in Canada needs credit to get by, which has never been more pronounced. But, do you know what your credit score is?
You should sign up for services like Credit Karma to know what your score is in real-time. If your credit score is over 680, that is considered “good,” and you should be able to access competitive car loans in Dunnville.
If your credit score is on the low side, anything below 650, you can get a loan, but you will need to immediately deal with the root causes of your credit issues.
While reviewing your credit score, try to find out if there are any accounts that are either past due or in collections.
Should any of your accounts be in collections or past due, you must bring those accounts current as soon as you can.
Your credit score will improve once you have brought your accounts up to date, but it could take a few months before you see the benefit of this hard work.
While working on your credit score, you should think about the type of car you want to buy. There is a shortage of new and used cars in the Canadian marketplace; supply chain issues cause this, so you need to be prepared to move fast when you have identified the car you really want to buy.
How to Buy a Car in Guelph after COVID-19
Interest rates are on the rise, but you can still get a decent deal; the best source of deals is not online but going through a local dealership.
When you work with a local car dealership, they will have access to lenders all across Canada, so you will have access to the most competitive terms.
In addition, the dealerships have access to wholesale lending rates to get you the best possible terms based on your credit profile.
The sooner you reach out to a dealership, the sooner you can get a competitive interest rate car loan, but you need to pick up your phone and contact the dealership today.
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 car in Guelph after COVID-19 and will work with you no matter your credit score.
For any questions or concerns, please don’t hesitate to contact us here!