Why Canadians should consider buying a new car ASAP

Posted by on Aug 03, 2022 - Archived under Bad Credit Car Loan Tips

If you are reading this, you must be thinking about buying a car or already have a car loan.

The Bank of Canada will soon raise interest rates, which is why we want our readers to move forward with their plans to buy. As soon as interest rates start to go up, they will go up quickly.

This isn’t just a theory that a bunch of people at local Tim Hortons is talking about over a double double.

Day traders have already started planning for rate hikes as part of their trading strategies. Interest rates are at all-time lows, so it may not seem like a “big deal” right now.

You have to remember that the prices of both new and used cars are going up, and a new car could easily cost you $40,000.

When interest rates go up, it hurts the economy in other ways

In modern economic theory, the reason to raise interest rates is to slow inflation. When there is an excess supply of cheap money, prices start to rise, and if not kept in check, it could lead to runaway like what we see in countries like Sri Lanka.

Covid-19 has caused a lot of economic pain, so the Canadian government spent a lot of money to help the economy.

History will show if the choices that were made were good or bad. All Canadians will have to pay for this spending through higher taxes and higher prices on almost everything, even cars.

Food, housing, energy, and cars all cost more because of inflation, so even if interest rates go up, inflation’s effects will last for years. Talk about getting hit twice!

We have a one-of-a-kind chance, but if you want to buy a car, you need to move quickly before interest rates go up.

You don’t have to “buy” the car right away, but you can get a loan with a fixed interest rate. This will give you some time while you look for a car that meets your needs.

There are more car buying options than before

You now have the option of buying an internal combustion engine, hybrid or EV.

Since gas prices are tracking higher and will never drop in a meaningful way, you should seriously think about getting a hybrid or EV.

Getting the best deal possible

You can’t find a great car loan online; to get favourable terms, you need to have a solid credit score and go through a local car dealership.

The financing experts at the dealership will set up your deal so that you pay the least amount of interest possible. Even if your credit isn’t great, you can still get a good car loan.

Interest rates will go up in 2022, so you need to buy a car before prices go up and supplies go down even more.

If you don’t, you’ll either be without a car or paying a very high-interest rate for the “privilege” of having 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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