Are you waiting for the right time to buy a new car? Maybe trying to time the market? Well, we hate to burst your bubble, but buying a car during inflation in Canada is probably still the right thing to do, since it could always get worse.
Why Now is the Time to Buy a New Car
Inflation has made everything more expensive, even if you have trimmed all of the fat from your budget, prices on everything are going up, and that includes the price of a new car.
canada iflation and interest rates
Your current vehicle may require constant maintenance and expensive repairs that will eat away at your precious savings.
With a new car, even if there were repairs needed, it would be covered by the warranty, so you would at least have peace of mind knowing you aren’t going to be out of pocket for unexpected repairs.
Interest rates are on the rise to combat inflation, so while costs are climbing, so too is the cost to borrow money for important purchases like a home or a vehicle.
Canadians are even turning to debt to make ends meet; while this helps them in the short term, these debts will need to be repaid at a higher interest rate.
How to Lock in the Best Car Loan Terms
While there isn’t much you can do about inflation and high-interest rates on a macro level; you can take some proactive steps to help mitigate the impact it will have on your quality of life.
The first is to start cleaning up your credit report, so your credit score is as high as possible.
Lenders are already raising their interest rates and making it more difficult to secure low-interest rate car loans.
By having the highest possible credit score, the odds of you buying a car during inflation in Canada will improve dramatically.
Something that you should consider doing is coming up with a modest down payment towards a new car, or you can trade in your current vehicle and get top-dollar for it.
By having a down payment on the vehicle, it will help you secure an even better deal than if you tried to get the loan with no down payment at all.
The Simplest Way to Find a Great Deal on a Car Loan in Canada
With all of the information floating around online, you can have a difficult time making heads or tails of things.
Something you should do to save both precious time and money is to work with a local car dealership in your community, a dealership that has a long-standing track record of providing top-notch customer service.
The faster you can get a car loan with a competitive interest rate, the more money you will save for the entirety of the car loan, so be sure to contact the local dealership today.
For those of you who know that you have a challenging credit situation and need to buy a car during inflation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!