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Now is the Best Time to Buy a New Car in Grimsby

Now is the Best Time to Buy a New Car in Grimsby

If there was a good time to buy a new car in Canada, that time is now. The car market is experiencing a considerable amount of pressure from multiple fronts.


Our Grimsby car loans team are going to explain why you should buy a new car soon.


Interest rates are going to skyrocket soon


The Bank of Canada recently increased interest rates; while 25 basis points is not going to make a huge impact on car loans, the next round of interest rate increases will.


These interest rate increases are necessary to slow down the rate of inflation.


When interest rates rise, it makes it more expensive to take out a Grimsby car loan, so you should lock in a low-interest rate car loan today.


While on the topic of inflation, the costs of everything are rising, including the key components that go into making a car.


These rising costs do not impact the current inventory of vehicles, but very soon, the prices of new cars will rise, which will end up costing you more.


The importance of having a good credit score


Having a good credit score will help you make the most of this once-in-a-generation opportunity.


The war in Europe is going to lead to prolonged economic uncertainty, and lenders are scrambling to find creditworthy borrowers to issue new car loans.


You will be able to lock in a low-interest rate car loan if your credit score is over 680.


Even if your credit score is on the low side, you should get a car loan before the interest rates begin to climb to unsustainable levels.


If you are not sure what your credit score is, sign up for free access with both TransUnion and Equifax.


Do you have a stable and substantial income?


Having a decent credit score allows you to get a competitive interest rate car loan, but you still need a substantial amount of money to service that loan.


The majority of lenders will not approve a loan if the debt-to-income ratio (DTI) is more than 40%, so take your gross monthly income and multiply it by 0.4; that number is the maximum amount of debt you can service, factoring in a new car loan.


If you are close to that threshold, you should try to reduce your debts or increase your income by taking on another part-time job.


Where to find the best car loans in Grimsby


The Internet may seem like the best place to find a car loan, but that is not the case. If you truly want the best car loans, then you should go to a car dealership in your area.


The car loans offered online cannot compare with the deals your local dealership is able to secure.


These dealerships have access to wholesale lending and can pass the savings on to you.


The dealership also has credit specialists that can help you repair any credit issues you may be having, but you need to move fast before the market conditions change.


We’d love to help you buy a new car in Grimsby. 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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