Blog

How inflation is hurting Canadian car buyers from coast to coast

Posted by on Aug 16, 2022 - Archived under Bad Credit Car Loan Tips

The pandemic has caused untold stress on the Canadian economy, and while we are all learning to live with Covid, a new challenge has emerged namely inflation.

Inflation can be attributed to the Trudeau Government printing large amounts of money and pumping it into the economy.

While a small portion of this money printing was used to keep Canadians afloat, programs like CERB, for example.

This Pandemic spending is just the tip of the iceberg as this resource-rich country is under great strain to keep servicing its obligations.

Inflation has gotten out of hand

The Bank of Canada has started to take inflation more seriously and started to increase the prime interest rate.

Economic theory suggests that when you increase the borrowing costs of money, it slows down the amount of borrowing that takes place in the economy.

When borrowing slows down, it reduces the amount of money in circulation, which should help bring down inflation.

Where things get tricky is that gas prices are artificially high, while oil is priced in US dollars when refineries in Canada purchase crude, the carbon taxes levied by the Trudeau government has made life especially difficult for the average Canadian and why we decided to put together this article.

Rising gas prices and your upcoming new car purchase

Inflation and rising gas prices are two of the primary reasons why you should consider getting a new car as soon as possible.

In the later part of this year, car prices will start to increase as carmakers throughout the country simply cannot keep up with rising unit costs and must pass on these increases to you, the consumer.

Along with the rising car prices, something else you need to contend with is the interest rate increases being introduced by the Bank of Canada.

Even Canadians with fantastic credit are going to face some challenges as their borrowing costs increase.

The only way you can lock in the savings is by taking out a car loan before interest rates go even higher.

Where to get the best deal on a new car in Canada

While shopping online for a new car may seem convenient, you should seriously rethink that approach.

The best place to get a good deal on a new car is with the help of your local car dealership.

These local dealerships can help you secure the most competitive terms on a new car loan, better terms than what you could ever negotiate on your own.

Along with getting a good deal on a new car loan, the dealership already has cars available in its inventory that you can drive home today if you truly love the vehicle.

So, if you want to save money on your next car purchase, then head over to your local dealership right now and start reviewing the options that are available; it is going to be the best decision you ever made this year.

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!

Let’s get in touch! 

Dixie Auto Loans