Tips for Canadians on a low budget who want to buy a new EV

Tips for Canadians on a low budget who want to buy a new EV

Posted on June 17, 2022

Are you thinking about buying an EV, but worried about where the economy is headed? You are not alone!

Inflation is ravaging the Canadian economy, and most of us are barely scraping by. There are choices available if you need a new automobile and are living paycheck to paycheck, but you must remain with us until the end if you want to have a shot.

According to a recent research, the average Canadian is around $200 away from going bankrupt; this is one of the by-products of slow wage growth and runaway inflation.

While we cannot control inflation, we can trim out excess spending and focus our money on things that really matter.

Even if you're in a tight financial situation, if you have good credit, you'll be able to stretch every dollar you earn.

It's a good idea to keep an eye on your credit score, especially if you're not doing so already. You can use apps such as Koho, which provides free access to your TransUnion credit report.

Your credit score must be over 700 to qualify for low-interest vehicle loans; you may be able to get approved with a 650, but the interest rates will be extremely high.

If your credit score is poor, there are several simple steps you may take to improve it.

Start by always paying your debts on time; missed payments are the major cause of a negative credit score; even if you can only afford the minimum payments, never miss a payment.

Budgeting concepts you need to implement

We need to talk about the importance of establishing a budget while you're working on raising your credit score. Without a budget in place, how will you know if you can afford a car payment?

The typical auto payment in Canada is $500 for a gas-powered vehicle, but if you want to get the most bang for your money, now might be the time to switch to an all-electric vehicle (EV).

Some people ask if electric cars are less expensive than gasoline ones. The quick answer is a resounding yes over the life of the vehicle!

While the initial investment may appear to be high, you will save a significant amount of money each time you plug in your EV instead of pumping $2+ per litre of gas.

Best places to find an amazing bargain

Some EV dealers will try to sell their vehicles online; while internet shopping is fun and easy, when it comes to making a serious financial decision like buying a car, you must deal with someone in person; you must visit a local dealership and look at their inventory of new and used vehicles.

With interest rates on the rise, you'll need to act quickly if you want to get an affordable auto loan; the dealership can assist you in obtaining financing as well as any electric vehicle rebates you may be eligible for.

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