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How Omicron will impact car buying in Waterloo

How Omicron will impact car buying in Waterloo

The pandemic practically derailed the global economy, and things are just starting to get back to “normal”. Now that the Omicron variant has reached Canada, our Waterloo auto loans team wants to discuss how it will impact car buying.

A limited supply of new and used cars

There was already a reduction in the number of new and used cars being produced in Canada due to the microchip shortage.

With the variant prompting the government to prepare for additional lockdowns, it may wreak havoc on a supply chain that is stretched to the limit.

If you have been thinking about replacing your current vehicle or buying your first car, now may be the time to act. Otherwise, you could end up having to wait a few years before there are cars within your budget.

Car prices are rising faster than incomes and this trend is not going to slow down until the economy gets back to normal.

Finding out what car loan options are available to you

Your credit score for the most part will dictate whether you qualify for prime or subprime car loans in Waterloo. The current minimum credit score needed for a prime rate car loan is 680, there have been murmurs of some lenders requiring 720 but we cannot verify that at this time.

Sign up with TransUnion and Equifax for their credit report service. These agencies do offer paid services but you should be able to get by with their free solution.

If your credit score is over 680, then you are in good shape. Should your credit score fall under 680, then you have some housekeeping to do.

Are there any accounts in your credit report that are delinquent?

This is the primary cause of a low credit score and it can be addressed by simply paying the outstanding debt. Once the debt has been paid, it can take up to 30 days before it will appear on your credit report.

If you need a car now and cannot wait to fix your credit report, there are subprime car loan providers in Waterloo willing to give you a car loan, but they charge a higher interest rate. It stands to reason that the higher the perceived risk, the higher the interest rate.

How to access subprime car loan providers in Waterloo

Subprime lenders are not able to scale their business like prime lenders, instead of using automation and online advertising, these subprime lenders work via dealership networks where they can get to know the prospective borrower.

You will need to visit your local car dealership and discuss your option with them.

Since the dealership has access to all of the subprime lenders in Waterloo, you will be able to get a loan approved however, the maximum car loan may not be high enough for a new car and you may have to opt for a top-quality used car.

While speaking with the dealership, they can help you repair your credit so in a few months you can refinance your current car loan at a lower interest rate. The sooner you get your car loan approved, the sooner you can start rebuilding your credit.

We will use all our skill and experience to deliver the lowest possible Waterloo auto loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.

Categories: Auto Loan

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