Canadians are getting hit hard at the gas pumps, you could be driving a fuel-efficient hybrid, but with rising gas prices, your savings are getting eaten up by carbon taxes.
This pricing strategy set out by the Trudeau government is intended to force consumers to make the switch from gas-powered cars to all-electric vehicles.
The reasoning for this can be drawn from anti-tobacco campaigns, which increased the price of cigarettes to lower the number of people who smoke.
While that approach worked for smokers, smoking is a choice, but most Canadians need to drive to work, so they have to make the decision to either get an all-electric vehicle or continue paying a fortune for gas.
Budgeting for the purchase of an electric car
There is a misconception that you need to spend over $60K to purchase an EV. Granted, there are luxury models that can easily exceed $60K, and the same can be said for gas-powered cars.
You should budget to spend in the range of $35K to $40K on the purchase of your electric vehicle.
This sounds like a lot, but there are financing options available because, let’s face it, the average Canadian does not have that much cash sitting inside their bank account.
Something that will make you happy is the projected amount of money you will save when you make the transition to an electric car.
If you take the average cost per kilometer for gas and compare it to what it would cost you to travel the same distance with an electric car, it is a no-brainer. We are talking pennies on the dollar in savings.
Having a good credit score to qualify for a competitive car loan
The number of lenders that finance the purchase of electric cars is increasing, but it will take some time before it matches the sheer number of lenders that offer car loans for internal combustion engines.
Your credit score is the single biggest influencer on what loan options are available to you.
To get the best possible terms, your credit score needs to be 720 or higher; get free access to your credit score by signing up with TransUnion and Equifax.
If you are facing credit issues, you can still get approved for a car loan but be prepared to pay a higher interest rate. Interest rates, on the whole, are rising, so you must do everything you can to keep your credit score high.
Where to get the best deal on an electric car loan in Canada
If you want to secure the best deal on an electric car loan in Canada, you need to head over to a local car dealership in your community.
The dealership will have an extensive inventory of new and used electric cars you can choose from.
The dealership will also be able to help you get approved for a car loan, even if your credit score is on the low side.
You need to contact the dealership as soon as possible; the longer you wait, the more cash you will waste on gas for your existing vehicle.
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!