Why Are Cars So Expensive in Canada? Your Questions Answered

Why Are Cars So Expensive in Canada? Your Questions Answered

Posted on March 24, 2022

If you are wondering whether now is the right time to buy a new car in Canada? You are not alone. A lot of people are saying cars are too expensive in Canada. Our St. Catharines car loans team are going to provide you with real-world information that will make the decision-making process much simpler.

Are Cars too expensive to Buy One? Net Yet

Do you need the car right away, or are you able to wait for a while?

During the height of the Covid-19 pandemic, most Canadians held off making any major buying decisions like purchasing a vehicle because they didn’t know what was going to happen with the economy.

However, now that we can see our way clear of the pandemic, consumers have come back and want to get their hands on a new car ASAP.

Car inventories have never been more stretched

Both new and used car inventories throughout Canada are stretched to the max. There are simply not enough vehicles to meet demand, even when consumers are willing to pay a premium.

Car prices, on the whole, have been rising each and every month; while inflation caused by quantitative easing has a role to play in this, it is not the only variable at play.

The average new car costs well over $50,000, and while the prices of everything are rising, wages are not keeping pace, so most Canadians are forced to tighten their belts.

Car loan providers are fighting tooth and nail for business

The organizations that issue car loans in St. Catharines are aware of the vehicle shortage and must work even harder to get car loans approved and funded.

These lenders will do everything they can to gain market share but have to temper this enthusiasm by carefully underwriting every car loan that hits their desk.

If you are applying for a car loan, you need to have verifiable income and a credit score of at least 600.

You may be able to get a car loan with a 500-credit score, but the lenders are going to charge you a premium for that loan, and the loan may not be enough to cover the purchase price of a new or used car.

Where to find car loans for every credit profile

Car buyers who need a car fast and cannot wait for the supply chain to work itself out will need to rely on the expert advice of their local car dealership.

The dealership is equipped to help you secure a loan, even if you have bad credit.

By working with the dealership, you would also have the ability to access loans that you could never find anywhere else on your own.

You should always take advantage of the in-house credit expert the dealership has on staff.

The credit expert will help craft a personalized credit rebuilding plan that will help you turn your situation around for the better.

You can still get a good deal on a new car in Canada; you just need to follow the fundamentals and work with a reputable local dealership that will be there to help you every step of the way.

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 or see our selection of used cars at our Burlington dealership. 

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