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What Canadians need to know about car prices in 2022 and beyond

Posted by on Sep 06, 2022 - Archived under Bad Credit Car Loan Tips

Have you been anticipating a decrease in car prices so you may get a good deal? Although you are not the only Canadian seeking a good deal, you might not have much longer.

Because of inflation, prices are going up everywhere in the economy. Waiting too long to get a new car could result in higher costs than anticipated.

What kind of vehicle are you seeking? (gas-powered, hybrid, or electric)

Your money will be impacted by the answer to this question both now and in the future.

Gas costs are at an all-time high and will continue to rise, despite the fact that they might make a gas-powered automobile look like a better deal right now.

Anyone who was hoping and wishing that costs would decrease is in for a nasty surprise. The carbon tax implemented by the Trudeau administration is the primary cause of rising prices.

The majority of Canadians, are perplexed as to why Alberta’s oil reserves aren’t utilised to aid those in need.

Even if we export a lot of our oil to the US, it is too expensive for Canadians to extract, process, and sell it as a result of these carbon taxes.

The next time you experience pain at the pump, keep in mind that it wasn’t the free market that led to such high costs; it was a politician.

We don’t have any political affiliations and work to maintain as much neutrality as we can.

The effects of inflation are devastating for the auto industry

Canadian inflation is out of control, which is especially detrimental to the auto industry. Finding raw resources and paying workers fairly are necessary for producing the high-quality autos they are producing.

For a while, the auto industry could absorb these additional expenses, but eventually they will have no choice but to pass those costs along to you, the consumer.

Until inflation is under control, automakers will need to find a method to safeguard their customers and keep the lights on.

Obtaining a loan for a new car is more difficult (not just for you, but everyone)

Even if you have excellent credit, anything you want to buy will cost more. Tiff Macklem at the Bank of Canada has the challenging task of controlling inflation.

Only the central bank will be able to accomplish this by increasing interest rates.

It is understandable that Tiff stays up late at night trying to come up with a solution because these increasing interest rates ought to work but they also have the potential to plunge us into a recession overnight.

You can still find a good price, but timing is crucial

Even though things seem hopeless, if you act promptly and engage with a nearby vehicle dealership, you can still obtain a fantastic offer.

You can typically receive a car loan at a rate that is lower than the prime interstate rate at dealerships.

Even if your credit is less than ideal, this is a wonderful moment to obtain a car loan.

Interest rates will start rising more swiftly by the third quarter of 2022, and your opportunity will be lost.

So, get in touch with your nearby dealership right now and begin scheduling test drives for their vehicles. Your most successful call in a while will be this one.

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! 

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