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Reasons to make the switch to an EV in 2022

Reasons to make the switch to an EV in 2022

If your vehicle is more than five years old, you need to start thinking about making the switch to either a hybrid or an EV.

Our Lincoln car loans team are going to focus on EVs because they represent the future of automobiles in Canada. Hybrids are suitable if you live in areas of Canada where charging is just not practical.

Carbon taxes, gas prices, and your wallet

When the Trudeau government implemented carbon taxes, it was intended to push Canadians away from fossil fuels and towards renewable energy sources like electricity.

An immediate consequence of this new policy is Canadians who are unable to make an immediate switch from gas-powered cars to EVs are being hit with unsustainable gas prices.

During the pandemic, when most of us worked from home, we didn’t have to worry about spending large sums of cash on fuel; we spent the majority of our time at home.

Now that employers are asking employees to return to the office, that commute is eating into your budget in a bad way.

The public transit system in Canada is simply not able to meet the demands of the entire Canadian population; the only way that our modern economy is able to function is with the use of personal vehicles that allow Canadians to get from point A to point B.

Interest rates and inflation: A double whammy

Inflation is a fact of life but what makes this bout of inflation worse than usual is the sheer rate at which it is increasing. Inflation usually tracks around 2%, which is considered to be healthy for an economy.

According to the latest figures, inflation is nearly 6% and increasing. In the most basic of terms, everything is 6% more expensive, but your salary didn’t increase by that amount. If you are like most Canadians, your income may have shrunk during the pandemic.

While 6% may not seem like much, that number is going to grow every month until something is done by the government, or we need wheelbarrows of money just to buy a loaf of bread (a bit dramatic, but it has happened in the past.)

The only way to slow inflation is by raising interest rates, and that falls under the purview of the Bank of Canada.

As you are reading this, the Bank of Canada is raising interest rates but doing so in a measured approach. They are trying to balance slowing inflation while not allowing the economy to go into a full recession.

I thought this was about buying EVs; why the economics lesson?

We needed to explain what is happening in the Canadian economy with interest rates, so you can understand why you must buy an EV before interest rates go higher and you are forced to pay even more money to service your car loan.

Another reason to buy an EV now is the rebates you will receive from the government; these rebates can make a substantial difference in how much you end up paying.

The only way to take advantage of this opportunity is by working with a local car dealership. The dealership will be able to get you a great car loan, even if you have significant credit issues, but you need to contact the dealership today.

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

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