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

Pandemic car buying tips for Canadians

Pandemic car buying tips for Canadians

It seems that Covid doesn’t want to leave us alone and now the majority of Canadians are vaccinated, the economy is still trying to bounce back.

If your car is on its last legs or you need a new car for work or life there are some strategies you should incorporate into your car buying activities for optimum results.

Our Woodstock auto loans team explains:

Car prices are high and won’t come down soon

The prices of used and new cars are rising and due to shortages within the supply chain, there simply is not enough new and used cars to satiate the current demand.

These shortages are not unique to Canada, the entire world is trying to adapt but it will take time to stabilize.

Without additional cars to sell, the prices of what is currently available will climb and remain high. Websites like Kelly Blue Book are not able to keep pace with just how fast car prices are climbing.

As prices climb, it can make getting a Woodstock auto loan more difficult to secure. With the average new car, well over $40,000, if you are only making $30,000-$40,000 a year then it would be quite difficult to qualify for a loan.

Credit score and auto loan underwriting

Your credit score will play an integral role in whether you are approved for a car loan and at what interest rate.

The baseline minimum credit score for a prime interest rate auto loan is 680+/-, so you need to check to see where your score is and whether you need to take remedial steps to boost your score.

How to get access to competitive auto loans in Canada

There are numerous websites online that offer auto loan quotes for prospective borrowers but these websites are not lenders but aggregators that then give your information to other lenders.

You will be inundated with offers and will need to deal with each lender individually until you can determine who will give you a good deal.

This step is very labor-intensive and there is no guarantee that you are going to get a competitive offer. The underwriting requirements for each lender vary and you are never sure if the lender is legit or running a scam.

Gaining a competitive car buying advantage

One surefire way you can save time and still get the Woodstock auto loan at competitive rates is to get help from a dealership. The dealership already knows all of the lenders that cater to prime and sub-prime borrowers.

These dealerships also have cars in their inventory that you can peruse while waiting for a response on whether you qualify for a car loan and at what interest rate.

While working on your auto loan, the dealership can give you professional insight on how you can raise your credit score. The trick to having a high credit score is paying your bills on time. If you heed the advice provided by the dealership then you should be able to get a great deal while trying to circumnavigate this pandemic.

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

Categories: Auto Loan

Tags: ,