Are electric car prices starting to come down in Ontario?

Are electric car prices starting to come down in Ontario?

Posted on August 8, 2022

Ontarians who want to buy an electric car wonder when is the right time to pull the trigger.

It seems that car prices keep rising even though the economy is supposed to be on the verge of a recession, and prices are out of control.

Inflation, car prices, and you

Something that you need to be aware of when shopping for an electric car in Ontario or anywhere else in Canada, inflation is increasing the retail price of a new car.

These pricing increases are just one part of the puzzle; not only are the components and labour costs increasing the prices of new cars, but everything else in Canada is also getting more expensive.

Even if you don’t add any new spending to your budget, the buying power of your budget is getting decimated on a monthly basis.

Inflation is at a level never seen in the last 40 years! This was when Atari and Nintendo were becoming really popular.

The only way to combat these rising costs is to increase your income by either asking your employer for a raise, taking on a second job, or doing both.

No matter what you decide, if you want to buy a new car in Ontario, you need to increase your income.

Credit score requirements

With rising interest rates and inflation, lenders all over Ontario are worried about taking on non-performing loans.

At the same time, these same lenders are under pressure to issue new loans and generate income.

Since these lenders are caught between a proverbial rock and a hard place, they are revising their loan underwriting.

To secure a prime rate car loan, your credit score should be over 720. You can get approved for a car loan with a credit score under 720, but the interest rate will be higher.

Along with a higher interest rate, the lenders are very proactive when reviewing the documentation for your loan.

You will need to show your income statements, bank account details, and your income tax assessments. While all of this documentation may seem like overkill, the lenders are being extra-careful.

Best strategies to follow when trying to save money on a new electric car in Ontario

If you want to save money on a new car, selecting the type of vehicle is important. While EVs and hybrids are in high demand, the conventional gas-powered car is experiencing low demand.

But you save more money on gas, which in these times makes up for the extra you pay.

This low demand will put downward pressure on the retail price of the vehicle, but you should bear in mind that while the retail price of the car is lower, you will be paying a premium for gasoline.

Securing the most competitive electric car loan in Ontario

If you truly want to buy a car, now is the time before prices increase any further. Your best option when trying to secure a car loan in Ontario is with the help of a local car dealership.

The dealership will be able to get you approved via their lender network. When you go through the dealership route, you have peace of mind knowing everything is going to be smooth.

Contact Unique Chrysler for help, advice and competitive Mount Hope car finance and leasing.

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