Should you Buy a Car During COVID-19 in 2023?

Should you Buy a Car During COVID-19 in 2023?

Posted on February 17, 2023

The only constant in life is change; however, the pandemic has impacted our lives in ways no one could have anticipated. Covid-19 has forced us to shop online as a matter of survival, and while online shopping is great for most things, you should not try to buy a car online.

There are people who report buying a vehicle online and claim it was a smooth experience.

This may be the case but think about it; you could be spending over $40,000 for a new vehicle. Wouldn’t it make sense to actually go explore all of your options in person?

Shortage of used and new cars

The global supply chain is trying to play catch up, and one of the casualties of the pandemic is a shortage of microchips used to manufacture new cars.

Without microchips, car manufacturers are not able to produce enough vehicles to meet the growing demand for new cars.

Consumers have to wait for cars to be built, or they can try to buy from the used car market. Prices on used cars have also gone up dramatically.

This creates a perfect storm of high prices on both new and used cars.

These high prices and limited supply can make buying a vehicle quite challenging if you are not prepared.

Low-interest rate car loans in Cambridge

The Bank of Canada has kept interest rates artificially low to help keep the economy going. These low rates will start to rise, so we recommend exploring your car loan options soon before they begin to rise.

While the interest rates are low, lenders have implemented strict underwriting to reduce the risk of taking on bad debts.

The current median credit score in Canada is 660, so if your score is over that amount, you will be fine.

Consumers with a credit score under 620 will have a tough time getting a car loan in Cambridge.

Stable income is imperative

Your income is what matters most when trying to get a car loan; lenders need to issue loans to stay in business and will cut you some slack provided your income is substantial and stable.

Self-employed applicants face an added degree of scrutiny by prospective lenders, so it would be prudent to get your income documents ready.

Where to get prime and subprime car loans

Earlier, we promised we would show you how to get a car loan, even if you had subprime credit. The source of great car loans is by going through a car dealership in your area that focuses on second chance financing.

Don’t worry about having credit issues; the dealership will show you how to fix your credit. We are all adjusting to life as Covid becomes endemic, but life carries on; by going through a local dealership, you are going to be very happy with the overall experience, so contact your local car dealership today.

We’d love to help you find the perfect car loan. Simply fill in the form below and we’ll get back to you ASAP! 

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