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Here's why we you Should Buy a New Car Now

Here's why we you Should Buy a New Car Now

If you detect a sense of urgency in the introduction, you are right. The auto industry in Canada and globally is experiencing some major supply chain issues which have created some incredible buying opportunities.


Our Bronte car loan team came up with some compelling reasons why you should move fast and buy a new car now!


The property market in China is tanking fast


The property market in China is experiencing an upheaval with major property developers facing bankruptcy. You may be wondering what property in China has to do with why you should buy a  new car now in Canada, at first glance the two are worlds apart.


When there is a major financial shakeup, banks and financial institutions tend to get nervous and tighten up their lending. Since there are trillions of dollars in exposure which not only affects Chinese investors but financial institutions from around the world, the shockwaves will be felt globally.


This is not a gloom and doom conversation like experienced back in 2008 when Leahman Brothers collapsed. However, it will lead to higher auto loan interest rates, so you need to be proactive and start shopping for a new car now.


Hedge your car buying risks by working with a great local dealership


You should never make a major financial decision like buying a new car without seeking out the opinion of qualified experts. Local dealerships not only have the new cars you are looking for, but they can also help you secure the financing needed to make the purchase.


We touched on how the global financial marketplace is experiencing some turbulent waters and that is forcing lenders to raise their interest rates.


Traditionally, when a lender raises their interest rates, they also tighten their loan underwriting guidelines.


In the past, you could have gotten a competitive auto loan with a credit score of 650 but that requirement could be 700 now.


You should review your credit profile with apps like Credit Karma or Mogo, to find out where things stand. These apps are free and if your credit score is not high enough, the dealership will still be able to help.


Knowing your options


The dealership will give you suggestions on how to improve your credit score over the long term but they can still help you get financed through lenders that focus on borrowers with credit challenges.


While the interest rates being quoted by these lenders are higher than prime rates, you can refinance the loan in a year when your credit score has improved.


Along, with having a good credit score you should bring your income documents. Lenders will need to be sure you have enough income to repay the loan.


By working with a local dealership, your odds of finding a reliable car at an interest rate you can accept have improved dramatically.


Just remember the dealership is there to help make your car buying experience a pleasant one, so be sure to reach out now before interest rates start to rise. The longer you delay booking a test drive and buying a new car now, the more it will cost you so be sure to take action now.


If you need help or advice on anything to do with auto loans in Bronte, 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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