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Best time to buy a car in Caledonia

Best time to buy a car in Caledonia

There are certain times in the year when a person can get a good deal on a new car but the pandemic has thrown everything upside down.

Our Caledonia auto loans team outlines what is often regarded as the best times to buy a car whether you use finance or not.

Limited supply and pent up demand

The pandemic has forced most Canadians to put major buying decisions on hold. Now that the pandemic is beginning to loosen its grip, these consumers are now looking to buy a new car because the current vehicle they have is no longer suitable for their needs.

This demand is met by a limited number of new cars that are available in the marketplace. The companies that produce computer chips for new cars have not been able to keep up with demand and now there is a massive backlog.

While some prospective buyers have tried to pivot and buy used cars, there is also a shortage of used cars that are currently for sale. This lack of cars to buy coupled with low-interest rates has led to a rise in car prices and in some cases used cars are selling for more than new cars.

How to get a fair price

You may think that this shortage will be over soon and you can wait it out. The reality is that we are 1-2 years before the inventory of new and used cars will reach pre-pandemic levels but it could be longer.

Another variable that you should take into consideration is that interest rates are going to start climbing. With price increases and rising interest rates, you are going to end up paying a hefty premium for a new car, if you are even able to get a car at all.  This is not some pressure tactic or fear-mongering, we are in uncharted territory and have to take a pragmatic approach.

Take action now

The first step is the most important, deciding to buy a car, it can seem intimidating especially with the economic challenges being faced but you need a car to lead a normal life.

Your credit score is of particular importance, if your score is under 680 you must take proactive steps immediately to get the score as high as possible. Do not waste money on credit repair programs being offered online but these programs do not work and could hurt your credit score.

The best way to fix your credit score is to ask the experts for help. Your local car dealership will be able to give you advice on how to raise your credit score and can simultaneously help you get a car loan approved based on your current profile.

By getting a loan approved now, you can purchase a car and refinance it in the future when your credit score improves. The dealership has many different lenders at their disposal so you have peace of mind knowing that they are getting you a good deal.

If you are still wondering if now is the time to buy a car, the answer is a resounding yes so be sure to call your local dealership now and find out what options are available to you.

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

Categories: Auto Loan

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