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You should Buy a Car in 2022 before Interest Rates Increase

You should Buy a Car in 2022 before Interest Rates Increase

The pandemic has changed the automobile industry in ways no one could’ve imagined. As a result, there is a chronic shortage of new and used cars available in Canada and around the world.


While carmakers are trying to catch up on the shortages, life carries on. If you are thinking about buying a new car, you will benefit from ultra-low interest rates, but you will need to adjust your expectations.


Since there is a shortage of cars, you may not be able to buy a car in 2022 before interest rates increase, with all of the features you want. If you can wait, it may take a few months for your new vehicle will be delivered. S


Should you not be able to wait, you could purchase a used car, but the interest rates on used cars are higher than new vehicles.


New vs. used car financing


We touched on how interest rates are on used cars are higher than new; interest rates as a whole are artificially low due to the Bank of Canada keeping rates down.


According to the Bank of Canada, those low rates are going to start rising soon.


Interest rates in the U.S. are starting to rise, so Canada must follow suit if it wants to remain competitive.


Seizing the opportunity


While rates have not increased, they will soon. If you are waiting for the “right time” to buy a car in 2022, now is the time.


You will need to qualify for a car loan, but lenders are under pressure to issue loans.


To qualify for a car loan in Ancaster, you need a minimum credit score of 620.


This is the minimum score, and if you want to get the prime rates, you would need a 680 or higher score.


There are apps you can download to check your score, so you should review your score now. Aside from having a decent score, your income has to be stable, or you would not be able to get a car loan.


The pandemic has caused a considerable amount of income uncertainty, so if your job is stable, then you will be in great shape.


Where to find a great deal when you buy a car in 2022


Most have grown accustomed to shopping online, and while doing research online is convenient. When it comes to buying a car, you cannot beat going local.


A local car dealership has cars that you could buy today. Another reason why you should go through a local dealership is their ability to help you get a car loan if you are having credit challenges.


The dealership has credit experts on staff who can show you the steps that must be taken when trying to rebuild your credit. By working with the dealership, you will be able to identify the root cause of your credit issues and start addressing those issues.


We know that interest rates are going to rise soon, so now is the time to start shopping for a car and repairing any credit problems you have. If you wait too long, you could find yourself in a situation where you are not able to buy a car at all.


We’d love to help you find the perfect car loan. Simply fill in the form below and we’ll get back to you ASAP! 


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    Categories: Auto Loan

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