Tips to Buy a Car on a Tight Budget in Waterford

Tips to Buy a Car on a Tight Budget in Waterford

Posted on April 11, 2022

If you need to buy a car on a tight budget, you can still get a good deal, but timing is key. Fortunately, our Waterford auto loans team is here to help.

Inflation is wreaking havoc on the Canadian economy

The economy in Canada has taken multiple hits due to the pandemic and now inflation. Inflation is over 5%, and that trend will likely continue for the remainder of the year.

Facing the risk of hyperinflation, the Bank of Canada is raising interest rates in an attempt to reduce the amount of inflation being experienced.

When interest rates rise, it makes credit more expensive, so anyone with variable rate debts or is carrying debts in general, is going to be forced to spend more to service those debts.

These interest rate increases mean you will need to dig even deeper into your pocket to repay the car loan as a borrower.

If higher interest rates weren't a big enough problem, inflation has made everything more expensive, so you are caught between a rock and a hard place.

The longer you wait for things to settle down, the more expensive it will be to buy a car on a tight budget in Waterford.

A limited supply of new and used cars available in Canada

The pandemic and the war in Europe have put immense pressure on the global supply chain.

Car manufacturers around the world are not able to produce enough cars to meet the current demand.

While the manufacturers will get caught up, it will take time, and some car buyers do not want to wait, so they are buying used cars.

All of this demand means you are unlikely to get much of a discount off the vehicle's retail price, but lenders are aggressive and trying to get market share.

You can get a competitive car loan even when on a tight budget if you have decent credit.

Credit score needed for a good car loan in Waterford

If you want to get a good car loan, you need a credit score over 680.

You can still get a decent loan if your credit score is over 600, but the number of lenders willing to offer loans to people with a credit score under 650 is getting fewer and farther between.

You should take a quick look at your credit score with free apps like Credit Karma; if your score is under 600, you need to look at what is causing the low score and deal with it right away.

The ultimate source for great car loans in Waterford

You can take a shortcut when trying to find a great car loan on a tight budget. You can reach out to a local car dealership and enlist their help.

The dealership is able to help everyone; no matter how challenging your financial situation is, they can get you approved for a car loan.

In addition, these dealerships are able to show you how to raise your credit score and find the vehicle of your dreams at the same time.

With all of the challenges that are taking place in the economy, you should reach out to the dealership now and start looking at what loan options are currently available.

We’d love to help you buy a car on a tight budget in Waterford. Simply fill in the form below and we’ll get back to you ASAP or see our selection of new and used cars at our Burlington dealership. 

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