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How to Buy a New Car in Burford that you'll Love

How to Buy a New Car in Burford that you'll Love

There are some important things that Canadians will need to consider when they buy a new car in Burford this year, as our auto loans team explains.


The year started with the economy still reeling from the pandemic, and while most provinces have removed the restrictions, we thought that life would go back to normal, but then the conflict in Europe happened.


How the war in Europe is impacting lives around the world


The war in Europe has led to the implementation of economic sanctions against Russia.


While the sanctions impact the Russian economy, it also has unintended effects on the global economy.


For example, Canadian banks have issued loans to Russian companies, and those loans are coming due; those loans are going to default, and the banks that issued the loans will lose a massive amount of money.


While the banks can survive these defaults, it will impact the sentiment of lenders around the world.


Lenders will not be willing to issue new loans to anything considered “risky,” which means that lenders will only issue loans to creditors like the USA, which is considered a safe bet.


This sentiment will permeate into the Canadian economy in the form of higher interest rates.


Inflation is at all-time highs


Lenders will be revising their loan underwriting, and the Bank of Canada will start ratcheting up interest rates.


The bank just raised the prime lending rate by 25 basis points and will need to raise the rates again, especially with gas prices exceeding 2 dollars per litre.


Gas prices are not going to drop any time soon, so you should try to find a vehicle that is good on gas, or you are going to spend a large amount of cash just getting from point “A” to point “B.”


Adjusting your finances and car buying expectations


Now that you know what is happening in the global economy, you will need to adjust your car buying expectations.


Carmakers cannot produce enough new cars for buyers, so you will need to wait if you want to get a car made to your specifications; this wait could be months in some cases.


You will need to adjust your budget to reflect inflation; with prices on everything going up, you need to allocate more money to cover expenses like food and energy.


For example, how much room do you have in your budget that can be allocated to car payments?


The average car payment is easily over $600, so you need to make sure there is enough room to cover this.


Where to get a great deal on a car loan in Burford


There are websites that provide car loans; you will not be able to get the best terms from these websites. Your best option is to get a car loan through a local dealership.


The dealership can help you get approved for a car loan, even if you have bad credit. These dealerships have access to lenders all over Canada, so they can shop around and get you the best deal and show you how to repair your credit.


With everything that is going on in the world, you will have peace of mind knowing there are experts here that can help you secure the most competitive terms.


We’d love to help you buy a new car in Burford. Simply fill in the form below and we’ll get back to you ASAP! 


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    Categories: Car News