The truth about high interest car loans in Glen Abbey

The truth about high interest car loans in Glen Abbey

Posted on August 10, 2022

With the Bank of Canada waging a full-scale assault on inflation by increasing the prime lending rate, car-buyers who want to finance the purchase of a new car will be forced to pay higher interest rates if they continue to wait.

Our Glen Abbey car loans team are going to cover what is happening in the auto financing space. By the time you reach the end of the conversation, you will know exactly how to get a competitive deal on a new car.

Lenders are having a harder time accessing capital

A few months ago, lenders could access relatively cheap capital and lend it out to car-buyers without much hassle.

However, the days of cheap credit are gone, and now it is time to pay the proverbial piper.

When the Bank of Canada raises interest rates, lenders need to pay a higher fee just to access the capital.

The clock is ticking from the moment the lender borrows the capital from the Bank of Canada until it is returned.

Since there is more risk to the lender, they are insulating themselves by increasing the underwriting requirements so only the most creditworthy borrowers will have access to the most competitive terms.

Where do you stack up credit-wise?

Do you know what your credit score is? You should keep a contact watch on both your TransUnion and Equifax credit score.

You could be the victim of identity theft and not even know it. Even if you are not the victim of identity theft, there are errors that could end up in your credit report.

These errors may cause your score to drop, which makes it more difficult to secure financing.

Once you have access to your free credit report, make it a habit to check your credit score often.

Can you afford the new car payment?

Everyone would love to drive a new car, but do you have the cash available in your budget to make the payments?

This is a serious consideration because, with inflation out of control, a growing number of Canadians are having a tough time keeping up.

Owning the car is more than making the monthly payment; you also need to pay for insurance, maintenance, and fuel.

All of these costs will eat into your budget, and with the average Canadian $200 away from financial hardship, you need to be proactive.

Where to find the best deals on a new car loan in Canada

When it comes to saving money on high-interest car loans in Canada, you need to get the car loan in place before the Bank of Canada increases the prime rate again.

You should visit your local car dealership today and start reviewing all of the various options that are available.

By going through a local dealership, you will have access to the most competitive financing terms possible.

In addition, the dealership has the ability to negotiate terms that you could not access on your own, so reach out to the dealership now.

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

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