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How to Find a Bargain on your Next Car in Mississauga

How to Find a Bargain on your Next Car in Mississauga

Canadians wanting to find bargains on new and used cars in Canada have their work cut out for them. The total inventory of new and used cars has been dwindling since the start of the pandemic and it will be months if not years before inventories recover to pre-pandemic levels.


This limited inventory has placed added pressure on dealerships that must try to squeeze as much revenue as possible from every sale. But fear not, as our auto loans team explains how to find a bargain on your next car in Mississauga.


Dealership competition


Dealerships all across Canada and the U.S.A are coming up with an array of incentives to try and get people to visit their lot and buy a car.


Consumers for the most part do not feel confident about their financial stability and are not willing to buy new cars right now.


With a limited pool of qualified buyers to target, the dealerships are offering incentives like 0% interest or 3 months no payment. These offers are fantastic but to enjoy them, you would need to qualify for these promotions (Each lender will set their lending requirements, your local dealership will help you find a lender that will work with you).


The 3 months no payment incentive would apply to most consumers with average credit scores (in the 670+ range). It is more challenging to qualify for the 0% financing and your credit score would need to be above 720 to be eligible. This score may sound impossible to attain but you can reach it


Along with these financing incentives, dealerships are offering extended warranties and even free oil changes for life!


You are spoiled for choice with all of the various incentives to choose from!


Qualifying for an auto loan


The underwriting requirements for Mississauga auto loans have changed somewhat since the pandemic has impacted the economy in Canada.


If your job was impacted by the pandemic and you received CERB payments, it may reduce the total amount of income you can declare on your auto loan application. These payments were issued by the Government of Canada to help individuals who lost income due to lockdown.


Lenders want you to have a good credit score and stable income. If you have been in your current job for only a few months then it would make it difficult to qualify for your next car in Mississauga.


While it may be painful to read, you should not be taking on new debt until you are confident you will be working into the foreseeable future.


Self-employed individuals have an even more challenging time proving their income. Your income tax notice of assessments may show you made substantial income in the past but lenders will need to see your current bank statements to get a sense of your overall cash flow.


These lenders are not being mean, they have to exercise caution because there is no guarantee that the economy will not grind to a halt should the pandemic come back.


The good news is if you can meet the underwriting requirements set by the lenders, you will be able to buy a new car with low monthly payments. Just be sure to not take out too much debt so you can withstand any potential income hiccups that may come your way!


We will use all our skill and experience to deliver the lowest possible auto loan rates on your next car in Mississauga, guaranteed. Contact Car Nation Canada Direct to learn how we can help.


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Categories: Auto Loan

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