Interest Rates For Electric Cars: What You Can Expect

Interest Rates For Electric Cars: What You Can Expect

Posted on June 2, 2022

It seems everywhere you look; the news is talking about the Bank of Canada jacking up interest rates to fight inflation. So what can we expect when we're talking about interest rates for electric cars in Simcoe Ontario?

There is no denying that inflation is making life increasingly hard for the average Canadian, so these interest rate increases are a necessary evil to stabilize the economy.

When the Bank of Canada increases the prime lending rate, it has a trickle-down effect on the borrowing costs of everything in Canada; from credit cards to car loans, everything gets more expensive, especially if you have a credit score under 700 (the median credit score in Canada is around 660)

How to make the most of this car-buying opportunity

This is a once-in-a-generation event; the Canadian economy is moving away from petroleum and looking for greener alternatives.

We produce a tremendous amount of renewable energy in Canada, so it makes sense to harness that energy for electric cars.

Carmakers are under tremendous pressure to roll out EVs as fast as they can produce them.

While their gas-powered and hybrid models will attract customers, the lion's share of their business will come from Canadians making the switch from gas-powered to an EV, so it is a race between all the big carmakers to see who can produce enough EVs to meet the demand of their discerning customers.

While interest rates are rising, there is a lag between when the Bank of Canada announces a rate increase and when lenders adjust their rates to reflect this new reality.

If you are willing to move fast, you will be able to lock in low interest rates on electric cars but you need to move quickly.

Assessing your creditworthiness

You should make it a habit to always keep track of your credit score; in Canada, we need credit for pretty much everything. TransUnion and Equifax offer free monitoring services; you should sign up with both of them.

Don't worry if your score on one platform is different than the other; these companies each use their own proprietary credit scoring formula.

If your score is under 700, look for ways to increase your score, one way is to reduce the total amount of debt you are carrying.

By reducing the total amount of debt you are carrying, you will save money on interest, and your credit score will increase.

Where to get the best deals on an EV car loan in Simcoe

When it comes to securing the most competitive car loans and deals, you should go through a dealership in your area.

The dealership will have access to wholesale lending via its extensive network of lenders. This same dealership also employs credit experts; these experts will review your credit profile and advise you on what steps you must take to boost your credit score.

Now that you know how to get the best loan on a brand-new EV reach out to your local dealership today and book a test drive.

Interest rates are going to increase, so you need to move fast if you want to lock in a great deal.

We’d love to help you with options for interest rates for electric cars. 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!