We have put together a list of essential things that every Canadian should keep in mind before buying a car in 2023
The first thing you should ask yourself is whether you want to purchase a new or previously owned vehicle. There is a certain allure to the idea of buying a car in 2023, but you are going to take a financial hit due to depreciation.
Another drawback to buying a new car, at least in the current market, is a lack of inventory. You will need to wait a few weeks or months before taking possession of the new car.
If you opt for a previously owned vehicle, you will still deal with some depreciation, but the car will, for the most part, retain its value. It would be wise to create a list of all the features and functions you want in the car; having this list will help make the shopping process a more conducive one.
What is Your Car-Buying Budget?
You need to have a budget defined before buying a car in 2023 or you could get yourself in over your head financially.
Inflation has driven up the cost of food, fuel, and housing, so you need to have your budget clearly defined. Once you have crunched the numbers and determined how much money you have available for your new car, you can then move on to the next step.
Finding a Great Priced Car Loan
After you have your budget defined, you will need to find a lender that will provide you with the most competitive terms. One option is to go through your current financial institution, which does offer auto loans, but there is no guarantee they will give you a competitive offer.
A common misconception is that local banks always have the best deal; that is not the case (we’ll tell you where to get great auto loans in a bit).
To secure the best auto loans, you need to have an impressive credit score and income documents. Interest rates are low but will start rising in 2023; as the prime rate rises, it has a knock-on effect on car loans.
Your credit score has to exceed 700 to secure the very best auto loans; If you aren’t monitoring your credit on a regular basis, you should carve out a little time each month to stay on top of things.
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!