880 Walkers Line, Burlington, ON, L7N 2G2
My Garage

How to save money on car loans with rising interest rates in Canada

How to save money on car loans with rising interest rates in Canada

The Bank of Canada is waging war on inflation, and the preferred weapon of choice is raising interest rates. For the better part of a decade, we’ve grown accustomed to low-interest rates, but it seems those days are gone.

When interest rates go up, even if you are responsible with your credit, everything becomes more expensive. It may not sound like a lot, but you must redouble your budgeting efforts to get the most bang for your buck.

With most Canadians on the fringe of financial hardship, a mere $200 emergency could force people into insolvency; this is not something to be taken lightly.

If you stick with us until the end of this conversation, you will be able to get a new car and save money in the process.

Timing is critical

If you were thinking about buying a car a year from now when things are better, don’t! Unfortunately, with the conflict in Europe and now Monkey Pox making the news, there are no guarantees that things will get better.

What you need to do is lock in a great car loan at the lowest possible interest rate. We are not trying to scare you; with inflation tracking the way it is, it would be fair to expect interest rates to be even higher next year than they are now.

The last thing you want to do is wait only to find out you missed out on an opportunity to get a new vehicle at a great interest rate.

Hybrid or EV

The type of vehicle you select will have a long-term impact on your wallet. You should be thinking about upgrading to either a hybrid or EV.

Gas prices can be summed up in one word “painful”! This pain is only going to get worse as the prices increase.

With a hybrid, the total amount of gas you need to drive will be reduced, but you will still need gas. EVs are a great alternative, you don’t need to buy gas, so that eliminates the need for constant fueling, plus there is very little maintenance.

How to get a great interest rate

The good news is lenders are all fighting to issue loans to creditworthy borrowers like you; the challenge is sifting through all of the various offers to figure out which deal is the right one.

This is not something you should attempt to do on your own, turn to the experts at your local car dealership for support.

The experts at the local dealership can shop for the entire Canadian market and select the lender that will give you the most preferential deal. If you have credit issues, the dealership will have their onsite credit experts show you how to improve your credit score.

If you made it to this point in the conversation, you need to contact your dealership now and start reviewing the car loan options that are available. The longer you postpone making a decision, the more it will cost you in the long run.

If you need help or advice on anything to do with auto loans contact Car Nation Canada today, we can help!

Categories: News

Tags: ,