The Canadian economy is experiencing some very distinct challenges as it transitions through the different phases of the pandemic, and now we are learning how to live with Covid.
One segment of the economy that has experienced tremendous growth in the automobile industry, consumers are eager to buy cars, and carmakers are having a tough time keeping up with demand.
It is not just the new car market experiencing double-digit growth; the used car market is also entering unchartered waters.
While rising prices may seem like a bad thing, there is an opportunity for you to purchase a car and not have to worry about depreciation.
Prior to the pandemic, depreciation would take a massive bite out of your vehicle’s residual value, but that is no longer the case; in some instances, there are people who are actually seeing their vehicles appreciate in value!
Interest rates are low but won’t stay there for long
The Bank of Canada kept interest rates artificially low, so the economy could survive the ravages of multiple lockdowns.
Now that the economy is starting to show signs of life, the Bank has begun increasing interest rates.
They must do this before the country falls into a state of hyperinflation; right now, you are probably feeling the effects of inflation when buying groceries, fuel, or just about everything else.
While interest rates are still low, you could secure a great deal on a new car and save a truckload or carload of money on interest in the process, but you need to move quickly.
Every month, the Bank of Canada will increase interest rates, and that drives up (I got puns by the dozen) your borrowing costs.
Even if your credit is not in prime territory, you can save money provided you get a loan ASAP.
Not all car loan providers are created equal
You should not fall under the presumption that your local lender is going to provide you with the best deal. Each lender has a particular financial product they focus on.
With your Big Five brick and mortar banks, their focus is on mortgages and credit cards. While they have car loans, the terms they offer may not be the best.
To access the most competitive car loans, you need to get help from someone who works with car loans all of the time.
If you need to put a new roof on your home, you wouldn’t watch a video on YouTube and try it yourself; you would go to an expert!
When it comes to getting the best terms on a car loan, there are car dealerships in your area that can get you approved for a super competitive car loan and find the perfect car for you at the same time.
These dealerships are highly specialized, and customer service is their bread and butter, so you are going to have an amazing experience, even if you have credit issues, the dealership will get you approved for a car today, but you need to contact them now.
Click here to get approved for your next great new car loan in Canada online today! we have a team of credit specialists ready to help you find a car 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!