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Why you should Buy New Car Right Now

Why you should Buy New Car Right Now

The pandemic has entered its 4th wave in Canada and the global economy is starting to bounce back. You may want to buy a new car but holding off until the “the right time”.


The reality is that now is the right time, interest rates are already starting to creep upward. While the reference we provided is for mortgages when rates move they tend to trickle down from mortgages to auto loans and finally to lines of credit/credit cards.


Once in a generation opportunity


These low-interest rates have been referred to as a once-in-a-generation opportunity.  While not everyone may be able to qualify for these loan interest rate car loans, if you do qualify and delay your purchase it may cost you in the long run!


Qualifying for super-low interest rates


Auto loan providers in Canada are facing a dilemma. On one side of the coin, they are under pressure to hit their target and give out as many loans as possible to credit-worthy borrowers.


On the flip side of that same coin, the lenders are worried about approving bad loans that default and could cost the underwriter his/her job.


The lenders are trying to find a middle-of-the-road approach where most people with decent credit are approved. To determine if you meet the criteria, there are some things you can do.


Call your local dealership and find out if they are offering any special financing. Most are offering low-interest rates and 60-90 day no payments.


The dealership has the tools to assess your creditworthiness and income to determine whether you qualify for the super-low interest rates.


There are apps available that will give tell you what your credit score is, but the credit scores these apps produce are not the same as the scoring system used by dealerships and lenders.


Even if you do not qualify for the super-low interest rate, you may be able to get access to competitive interest rates, this is something that only your local dealership can verify.


Identifying the right car for your needs


When you have worked out the maximum amount you can borrow for the new car, you can not start looking for cars that fall within that budget.


Along with the cost of the car, you should factor in the cost of insurance, gas, and maintenance. Fuel is of particular concern, especially with crude oil prices on the rise and the world trying to get away from fossil fuels.


You should try to focus on hybrid or cars with really good fuel economy. The money saved on fuel will help improve your finances over the life of your new vehicle.


Since you are aware of the low interest rates and opportunity to buy a great new car at a great price, you should make it a priority to contact your local dealership ASAP and book a test drive. There is no downside aside from missing out on the opportunity to buy a car at a low-interest rate so don’t delay and reach out now.


If you need help or advice on anything to do with auto loans in Hamilton or are looking to buy a new car right now, contact Car Nation Canada today, we can help!


For any questions or concerns, please don't hesitate to contact us here!


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