Ontarians who need to buy a car but want to know when prices will come down are in the right place.
We are going to look at the macroeconomics of the car industry in Canada and specifically in Ontario so you can make a better-informed buying decision.
The microchip shortage is over
There was a shortage of microchips in late 2021 and early 2022; this created a bottleneck in the global car manufacturing supply chain; fortunately, those shortages are gone, and carmakers are cranking out new vehicles at unprecedented levels.
What type of vehicle are you aiming for, ICE(Internal combustion engine), hybrid, or EV?
The federal government has mandated that by 2035 there will be no internal combustion-powered vehicles produced/sold in Canada.
So we have less than a decade before consumers have to switch to EVs, it is not a matter of “if” now but “when,” and the “when” is 2035.
A growing number of Canadians are opting for EVs, which is creating a spike in demand; when demand goes up, the prices of EVs will also stay relatively high.
If you are planning on keeping the vehicle for five years or less, then you should opt for a hybrid or ICE vehicle.
The prices for ICE and hybrid vehicles are coming down, and five years from now, you will be able to get a fair price for the vehicle.
While the used car market in Canada will have some growing pains as consumers migrate away from petroleum-powered vehicles, those cars will be purchased at auction by developing countries where electrification is not a viable option.
Taking advantage of a low-interest-rate environment
Interest rates on new car loans are competitive, but the Bank of Canada has been aggressively increasing rates to limit the impact of inflation.
If you are serious about buying a car, then you should do everything you can to lock in a deal ASAP. The Bank of Canada will be meeting again soon, where they will increase interest rates.
Work on your credit to save money on your car loan
One of the best ways to save money on a new vehicle purchase is to reduce the total debt you carry.
Carrying excess debt will lower your credit score and cost you a considerable amount of money so long as you are carrying those debts.
Where to get the best deal on a new car loan in Ontario
The best place to get a deal on a new car loan is just down the street from where you live, at your local dealership.
While the Internet has countless websites offering car loan quotes, you want someone who will go the extra mile in making sure you have a great shopping experience.
These local dealerships will help identify the lender with the best deal and will also let you test-drive all of the vehicles in their fleet until you find the one you love the most.
This is something that no website can offer and why you need to contact a local dealership today.
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!