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Should you Buy a Car or Invest the Money Instead?

Should you Buy a Car or Invest the Money Instead?

Suppose you need a new car and are deliberating whether to use your tax refund to buy a car or invest the money instead.

 

In that case, you should consider buying a new car. We are not tax experts, and every person has a unique set of circumstances, so we speak in generalities.

 

But if you give us the benefit of the doubt, you will understand why buying a new car makes sense now by the time you reach the end of this.

 

Inflation and interest rates are going to soar this year

 

The majority of us thought that once we got the pandemic under control, life would go back to normal.

 

While the pandemic restrictions are starting to go away, we are left in the economic wake of Covid-19.

 

One of the pandemic's biggest challenges was keeping the economy going while everyone was in lockdown.

 

The Government of Canada came up with a series of programs to give money to Canadians that could be used for food, housing, and other basic necessities.

 

There was support for small businesses that were also impacted.

 

How much money was allocated specifically for Covid related programs is unknown at the moment, but it is in the hundreds of billions, yes billions with a "B."

 

This inflationary spending has now come back to haunt us; with recent inflation reaching 5.1% per month, everything from food to gas is skyrocketing.

 

The only way the Bank of Canada can hope to slow inflation is by ratcheting up the prime interest rate.

 

Unfortunately, when the rate rises, it will increase the borrowing costs on everything from mortgages and credit cards to Mount Hope car loans.

 

We are expecting a massive interest rate increase this year, and before that happens, you should lock in a low-interest rate car loan.

 

The money you would be saving on a low-interest car loan compared to what is coming down the pike alone would be a strong enough reason to use your tax refund as a down payment.

 

Inflation is also impacting the retail prices of cars in Canada. Which is making the decision to buy a car or invest instead a difficult one.

 

While the current vehicles that are for sale have not been impacted by inflation, the newer models that will be coming out in the Summer and Fall will experience a dramatic increase.

 

This is not something the carmakers can absorb, everything is getting more expensive, and the consumer will eventually cover the costs.

 

Where to get the best possible car deal regardless of your credit profile

 

Working on the premise that you are looking for the best possible car deal, regardless of your credit profile.

 

In that case, you should visit your local car dealership.

 

They will help you with any credit issues you may be facing so you can get the best financing terms in the future.

 

In addition, the dealership will find the most competitive loan you qualify for today, so you can buy a new car before rates start to rise.

 

As you can see, it makes sense to contact your dealership today and start reviewing your car buying options.

 

We’d love to help you buy a car Burlington. Simply fill in the form below and we’ll get back to you ASAP or see our selection of used cars at our Burlington dealership. 

 

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    Categories: Auto Loan

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