Many Canadians are asking themselves this question since they are receiving cashback and want to make good use of it.
You might, for instance, use the money to pay off any high-interest debt or think about using it as a down payment for a new car; if your present vehicle isn’t going to last you for a few more years, you should seriously consider buying soon.
Prices for everything, including cars, are rising
Retail prices for both new and used cars have dramatically increased as a result of Covid; these prices will keep rising as long as inflation is above 8%.
The Bank of Canada is doing everything it can to reduce inflation, but the only way it can do it is by raising the prime interest rate.
Every time the Bank of Canada meets, interest rates will increase by 50 basis points, or even more.
Although this amount doesn’t seem like much, when viewed in the grand scheme of things, it is enormous. The cost of credit will increase across the board.
Less money in your pocket due to increasing loan rates and car prices!
Your average new car will easily set you back $45,000 and used car prices are not far behind.
Inflation will increase auto costs and general inflation until the European conflict is addressed, which will increase economic uncertainty worldwide.
You will be completely priced out of the market if you wait too long! especially if it’s difficult to verify your income or if your credit is less than ideal.
How to obtain a vehicle loan despite having poor credit
You are not alone if you are struggling with your credit. Only $200 separates the majority of Canadians from financial ruin!
Even if having credit problems does not indicate poor money management, you will pay more in interest over time.
You can still get authorized with a credit score of 600 even if a credit score of 680 or more is required to qualify for a car loan with a prime interest rate.
There is still hope even if you are facing serious credit issues. Although there are options, you cannot discover them online.
Working with a nearby dealership with in-depth experience in loan structuring is your best option. You may choose from a sizable selection of automobiles at these dealerships as well, which will save you a ton of time.
To get you the best vehicle loan terms, the dealership will shop throughout the whole Canadian market.
Additionally, they have credit specialists who can explain the measures you need to take to rebuild your credit. Nobody can afford to put off buying a car due to rising loan rates and car prices.
Do yourself a favour and get in touch with your neighbourhood dealership right immediately. It will be the best choice you’ve made all week.
If you go on as you are, though, you might find yourself absolutely priced out of the market.
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!