Why it's a Great Time to Buy a Car in Canada

Why it's a Great Time to Buy a Car in Canada

Posted on October 19, 2021

This is not some pressure tactic to make you make an impulse buying decision, we are working on the premise that you have been thinking about buying a car but have been unsure when would be the right time.

Our Ancaster auto loans team outline a few reasons why now might be the best time to buy a new car. We’re here whenever you need us!

Timing the market is not the right approach

Trying to time the car buying market is tricky during normal times and the post-pandemic world is anything but normal.

There are signals in the market that indicate now is the time to buy though.

Limited used and new car inventory

The number of available new and used cars is dropping daily. Individuals are not trading in their older cars for new ones, so fewer additional cars are being added to the used car inventory. Making it a great time to buy a car since it is becoming increasingly difficult.

Those who have used cars are not selling them to their local dealerships but trying their luck with online auctions like Copart and eBay.

The reason that these private owners are using these auction sites is buyers in developing countries like Africa are willing to pay a premium for these used cars. This insatiable demand has stripped the domestic market in Canada and across North America.

Carmakers are not able to get the chips needed to build new cars or components for the cars that are already on the road. This scarcity has given salvage yards across Canada the ability to generate a tremendous amount of money by selling used parts, but that is a conversation for another time!

Interest rates at never seen before lows

Another market signal you should heed is that interest rates are at historic lows. If you have good credit (680+) then you would be able to get an Ancaster car loan at 5% +/- which is very competitive.

While these interest rates are low, the lenders who offer them have become more stringent with their underwriting process. There is nothing to worry about, if you have a stable income and meet the credit score requirements then you should have no issues qualifying.

With all of these market signals, you should make it a priority to reach out to your local dealership and schedule a meeting, as you do not want to miss out on this once-in-a-generation opportunity.

Don’t try to buy a new car on your own

If you search online for a “low-interest rate car loan” or some derivative of that, you would be presented with an array of lenders to choose from.

The information from these websites can provide you with some insight into what is available in the market, but you should never try to get a loan without first speaking with your local dealership.

The dealership already has all of the prime and sub-prime lenders in their network who can quickly approve your loan. Aside from helping streamline the car buying experience, the dealership is there to help protect your investment with ongoing service work on the vehicle.

If this is your first time buying a car and are not sure which dealership you should turn to for help, look for the one that has the largest number of positive reviews online and you should be fine.

Or just visit us!

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

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