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How to Get a Good Deal on a New Car in Dundas

How to Get a Good Deal on a New Car in Dundas

If you're looking for a good deal on a new car in Dundas, you know how tough it is to find a suitable car! There is a shortage of vehicles that is taking a profound toll on the global automotive industry; this is not a uniquely Canadian problem.

 

What makes the car buying process more challenging is the lack of inventory has forced sellers to try and optimize their earnings from every transaction.

 

This is not the fault of the dealership; since there is a limited number of vehicles and they have fixed overhead, there is not much wiggle room when it comes down to negotiating a price.

 

Where the dealership can really help you save money is when it comes time to finance the deal, we will go into detail in a little while.

 

Inflation is rearing its ugly head

 

Most of us can handle 2% inflation per year, which is expected and can be factored into a budget. However, right now, inflation is at 5% per month, which is way out of control.

 

There are a few variables that are causing the spike in inflation, but the main culprit is the Bank of Canada increasing the money supply through quantitative easing.

 

The intentions behind the bank were to help prop up the Canadian economy as we dealt with a pandemic, but now that we are learning to live with Covid, it is time to pay the piper. Inflation impacts every facet of your life, and it will force everyone to review their budget.

 

Your current budget may not address this new reality, so you should spend a few minutes reviewing your budget and see how much you can afford to put towards a new car payment.

 

Lenders will not approve a loan if your total debt-to-income ratio is over 40%, so add up all of your debts, including the project car payment; if that amount is below %40 of your gross monthly income, then you should be fine.

 

If you experienced credit challenges, it would be in your best interest to start working on those as soon as you can. Having bad credit will increase your borrowing costs and negatively impact your car buying options; it could be something simple like an error inside your credit report, but you need to deal with those issues asap.

 

Why you should work with a car dealership

 

We touched on how car dealerships are working hard in very challenging circumstances due to limited inventory.

 

The dealership has limited inventory and may not be able to negotiate a substantially lower asking price due to their overhead, but they can get you the best financing terms.

 

Interest rates are low but will start to rise soon; inflation is forcing central banks to increase interest rates. Before that happens, you should go through the dealership and let them find you the best interest rate on a car loan.

 

Since car loan providers are aware of the vehicle shortage, they will work each and every deal hard. This is the best way to get a good deal on a new car in Dundas, so contact the dealership today.

 

We’d love to help you find a great deal on a new car in Dundas. Simply fill in the form below and we’ll get back to you ASAP! 

 

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