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Why buying a new car makes sense in 2022

Why buying a new car makes sense in 2022

If you've been waiting for the right time to buy a new car, 2022 may be the year for you to take the plunge. At least now that we are past the middle of the year and adapting to the post-pandemic normal, as our Mount Hope car loans team explains.

Inflation is wreaking havoc on your buying power

Prices are climbing, even if you are great at saving money, prices are moving higher, and inflation has just started to eek its way from Bay Street to Main Street.

From food to fuel and everything in between, Canadians are being stuck between a rock and a hard place financially.

This is one of the reasons why you should buy a new car now before the 2023 models start to be released, and those will have inflation factored into the MSRP.

Rising interest rates and car buying in Mount Hope

Inflation is forcing up the prices of new cars and everything else. The only way to stop inflation from bringing our economy to the brink of collapse is to increase interest rates.

The Bank of Canada has been quite transparent for a central bank in communicating the need to increase interest rates and trigger a recession.

These interest rates are going to increase very soon, but you can lock in a preferential rate now, provided you can secure the financing before things change.

It would be fair to expect that every time the Bank of Canada meets in 2022/2023, they will be announcing an interest rate increase.

So, the longer you wait, the more it will cost you with regards to the retail price of the car and the costs associated with financing the transaction.

Securing a car loan during a tight credit market

Auto loan providers are keenly aware that the economy is going to be thrown into a recession to stop inflation.

These lenders are under pressure to issue new loans and generate a profit but know that it is just a matter of time before defaults start to tick upwards.

Lenders are constantly revising their underwriting guidelines; in the past, you could get a car loan with weak credit and only being on the job for three months.

Now your credit needs to be fair or better, and you should have been at your current job for at least six months.

How to lock in a great deal on a Mount Hope car loan today

There are many different potential sources of car loans, from your bank to online lenders, but if you are serious about saving money and buying a great vehicle, then you need to visit your local car dealership.

The local dealership is going to provide you with access to lenders throughout Canada. This access all but guarantees you will get a great deal, even if your credit is weak.

What you need to bear in mind, the sooner you reach out to the dealership, the more money you are going to be saving over the long term because let's face it, everyone in Canada needs a car.

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

Categories: Auto Loan

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