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How the European Conflict is Affecting Car Prices in Canada

How the European Conflict is Affecting Car Prices in Canada

As the war between Russia and Ukraine continues, it creates a huge amount of uncertainty for everyone in the world. War is something that needs to be avoided at all costs because it impacts the lives of everyone on this planet in different ways. Here in Binbrook, the average Canadian needs a car to function, and car prices in Canada are being affected by many different things happening in the world right now.


The way by itself is a cause for concern, and so too is the pandemic, but when both are combined, the supply chain is being stretched to its absolute limit; we also had the trucker protest in Ottawa.


Carmakers are not able to produce enough cars, and they cannot ramp up production because they cannot get the microchips needed to produce these new vehicles.


This lack of supply and unprecedented demand has driven up the prices of cars, which has made it more difficult for the average Canadian to buy a car.


The Global Economy is Suffering


Central banks have printed large sums of money to keep the economy going, but inflation is now a real threat.


The Bank of Canada has raised interest rates in an attempt to slow inflation.


Russia has experienced sanctions from NATO and its allies which has also created anxiety with car loan providers.


Lenders like predictability when underwriting car loans. When a former cold war nuclear superpower invades neighboring democratic countries, it creates uncertainty.


This is reflected by higher interest rates and more underwriting than what was experienced in pre-pandemic times.


Trying to make the most of your credit


If you have good to excellent credit, you should have no problems getting a competitive car loan in Binbrook that will help you save money even with rising car prices in Canada. Even if your credit score is low, like in the 600s, you should still move forward with buying a car.


The car shortage will not end any time this year, so if you need a car, there is no time like the present.


Your income impacts how much of a car loan you will receive; you can borrow 35% of your gross monthly income, which factors your current obligations plus the proposed car loan.


After you have looked over your finances, you can start shopping.


Where to find the best deals on a new car in Binbrook


If you want to find the best deal on a new car, even with bad credit. We recommend going through a dealership in your community.


The dealership will sit down and get to know you personally; they will take the time needed to get you a great deal, no matter your credit or income.


And you will be delighted with the level of customer service you will receive. Since you made it this far into the conversation, why not head on down to the dealership right now and start looking at the available car loans?


There is no guarantee there will be cars available that meet your budget tomorrow.


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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