Throughout the Covid-19 pandemic, everyone was focused on when things would get back to “status quo.” They didn’t worry too much about the Trudeau government pumping billions of dollars into the economy and the inflationary pressures it would put on the economy as a whole.
Now that we’re getting to know each other through Covid, we also have to deal with inflation, which is at an all-time high.
Spending without thinking would be bad enough, but the Trudeau government’s carbon tax makes gasoline and other fossil fuels too expensive for most people to buy.
This catch-22 puts Canadian drivers in a tough spot; they have to buy a hybrid or electric vehicle (EV) and take on more debt just to get to work.
Drivers and borrowers in Canada are living on the financial edge
In Canada, people owe about $1.80 for every $1.00 they earn. That’s bad enough, but now that the Bank of Canada is raising interest rates to slow inflation, it’s even harder to pay off debts you already have.
Not only do you have to pay more to pay off your existing debt, but you also have less money left over to buy food.
Food is getting more expensive because of inflation, and high gas prices make it harder for hardworking Canadians to get food to their tables.
Making the best of a bad situation
Even though this is a tough situation, you may be able to use it to your advantage if you are ready to move quickly.
Car loan providers know that their costs of doing business are going up, so they are trying to make as many new deals as possible.
This means that some borrowers with less-than-perfect credit can get a good deal if they pay off their loan before the next interest rate increase.
You should look at your credit report to see how you’re doing. If your credit score is between 620 and 660, you’re in the middle.
If it’s 680 or higher, you’re doing great. If it’s 750 or higher, you’ll be able to get the best deals.
Even if you have bad credit, you should still try to get a more fuel-efficient car because there are still good deals out there.
Where to find lenders who will give you a good deal
Even though it’s easy to shop online, you won’t get a good deal. You should call your local car dealership right away to see what deals you can get based on how much money you have right now.
The dealership is always giving out loans for new cars, so they will know which lenders in all of Canada have the best terms.
Working with the dealership has the added benefit that they can negotiate with the lender on your behalf. This is very helpful if you have bad credit or are self-employed.
We’ve given you a lot to think about, but you don’t have time to stew on it. Instead, you should call your local dealership right away and start looking at what choices you have.
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!