880 Walkers Line, Burlington, ON, L7N 2G2, Canada

What's Going on with High Car Prices in Canada in 2022?

What's Going on with High Car Prices in Canada in 2022?

If you are in the market for a car, you are probably wondering what is up with the high car prices in Canada? Car prices are at all-time highs and are not going to come down any time soon.


Our Stoney Creek car loans team are going to provide you with the information you need to make the most of this car buying opportunity.


Understanding supply and demand


The supply of new cars has been seriously constricted; the pandemic has caused a series of challenges to the supply chain.


If the pandemic is not enough, there is a war in Europe that is causing even more strain on the supply chain, so car makers around the world cannot get the microchips they need to build new cars.


Facing a shortage of these critical components, carmakers are forced to curtail production.


The used car market is being used to meet this demand, but even the used car market is unable to satisfy the demand. This demand has caused all types of problems for carmakers and consumers.


Now that you know what is happening with high car prices in Canada in 2022, we can show you how to get a good deal.


Reviewing your credit score


Our credit score impacts all facets of our life; you should take a look at your credit score and see where you stand.


Credit scores do range from 300 to 850, and in Canada, anything over 680, then you are considered to be a prime candidate and get the most preferential interest rates.


Having a good credit score will help make your life easier, but you can still get a car loan, provided you have a decent income that can be verified.


If your credit score is under 600, you will pay interest rates in excess of ten (10%).


Getting a Stoney Creek car loan with bad credit


To get a car loan with bad credit, your lenders will take a closer look at your finances, namely your income. Lenders want to make sure you earn enough money to repay the car loan as promised.


The current industry standard is to not let a person take on more debt than 35% of their gross monthly income. Your current debts plus projected car loan must fall below that threshold in order to get your car loan approved.


The only way you can reach that goal is by increasing your income and reducing your debts.


Sources of the best car loans in Stoney Creek


When shopping for a great car loan in Canada, your credit score matters. You should head over to your local car dealership and find out what options are available.


The dealership has access to a vast network of lenders all over Canada; these lenders are aware of the lack of cars in the market and will fight hard for your business.


The dealership also has credit experts who will show you all of the steps needed to rebuild your credit and also get you behind the wheel of a great new car.


You should contact your local dealership as soon as possible, the number of available cars is dropping by the day.


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. 


Thanks for reading. Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles! 


    Finance Application

    By submitting this information, you are accepting that it may be collected, used and disclosed as described in our privacy policy.

    Categories: Auto Loan

    Tags: ,