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

4 Tips to Follow when you Shop for a New Car in 2022

4 Tips to Follow when you Shop for a New Car in 2022

There is a chronic shortage of new and used cars in Canada and throughout the world. If you want to shop for a new car in 2022, these strategies will help prevent you from spending more money than is necessary.

 

Understanding the current car market

 

We should spend a moment or two discussing what is currently happening in the automobile industry, so you can see the big picture.

 

The pandemic has caused supply chain bottlenecks, and this has impacted the automobile industry in a profound way.

 

Carmakers are not able to produce enough new vehicles to meet current demands. Consumers who do not want or cannot wait for new cars are opting to buy used cars.

 

The challenge is there are not enough vehicles to meet current or future demand. These shortages are forcing car prices to rise, so you need to move fast if you want to buy a car or be priced out of the market.

 

Picking the right vehicle for your needs

 

This is one of the most important steps; you will have the vehicle for upwards of five years, so you should pick something that will grow with your needs when you shop for a new car in 2022.

 

The vehicle should come from a carmaker that has a reputation for building reliable vehicles; an example of this would be Jeep.

 

While car prices are high at the moment, you still need to think about depreciation which is why you should select a reliable vehicle with great resale value.

 

Make sure your credit is up to par

 

The vast majority of Canadians will need to get a loan to purchase a new car. Who has $40-$50k sitting in their bank account collecting dust?

 

Interest rates are currently low, but the Bank of Canada is going to start raising interest rates very soon. Once interest rates start to rise, it will make borrowing more expensive.

 

Your credit score has to be over 680; if you want the most preferential interest rates, there is no getting around this requirement. Lenders are very cautious and will only provide the best terms to the most creditworthy borrowers.

 

This does not mean you cannot get a car loan if your score is under 680, but the interest rates are going to be substantially higher.

 

Selecting the right dealership

 

After you have looked over your credit, you will need to select the right dealership to buy your car. While there are many dealerships to choose from, give preference to those with a great customer satisfaction track record.

 

You want someone that will go the “extra mile” for you. This commitment to customer service is especially important when it comes time to negotiate your interest rate.

 

When you pick the dealership with the best customer satisfaction track record, your chances of getting a great car loan will improve dramatically.

 

Now that you know how to get a great car loan, you should start looking for a dealership and schedule a test drive before the car shortage gets worse and you won’t have any cars to choose from.

 

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! 

 

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: ,