Are you thinking about buying your first electric car? There has been a considerable amount of media coverage about the benefits of driving an all-electric vehicle in recent months.
While electric vehicles are gaining popularity and may be the vehicle of the future, there are some things you need to take into consideration before you buy your first electric car.
Where in Canada are you located?
This is an important question because it will impact your ultimate buying decision.
If you are living in Ontario and near the GTA, then it would make a lot of sense to buy your first electric car; there are charging stations you can access without much hassle.
Canadians that are living in more rural areas will need to wait for some time before they can buy an EV; there is a lack of charging stations in rural parts of Canada, so owning an EV would be very inconvenient.
EV prices are higher compared to internal combustion engines
The median price of a new car (internal combustion engine) is $40,000, which is considerable, but the average EV can run closer to $50,000, which is 25% higher.
There are some EVs that are closer to $40,000, but they may not have the range of features you need.
Since the asking price for these vehicles is high, you will need to qualify for a larger car loan in order to buy the EV.
Challenges in financing an EV
There is a limited number of lenders that are willing to finance the purchase of an EV.
With the limited number of lenders, the lack of competition means you are going to pay a slightly higher interest rate than what you would pay if you were buying an internal combustion engine.
With the limited number of lenders, your credit score is going to play a key role in whether you are able to secure a car loan.
To qualify for these loans, your credit score needs to be higher than 650. If your credit score is under 650, you could still get a car loan, but it would be smart to work on your credit to boost your score.
The simplest way to raise your credit score is by ensuring your accounts are kept current. This simple rule of thumb will help you keep your credit score in positive territory.
Sources of the best EV financing
The Government of Canada needs to offer rebates to help jumpstart the EV market.
While we wait for the Government to catch up, the best source of car loans for EVs is your local car dealership.
You will see websites that promote car loans, but they are not able to get you the best terms. The dealership can help you select the vehicle that is best suited for your needs and negotiate the best possible terms.
Whether you are buying an EV, hybrid or conventional vehicle, your local dealership will always be the best choice. Your commitment to customer service and ability to get you the best terms is why you need to contact the dealership immediately.
Click here to get approved for your next great new car loan in online today! we have a team of credit specialists ready to help you buy your first electric car suited to your needs and will work with you no matter your credit score.
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