This is when you should Buy a Car in 2022 in Canada

This is when you should Buy a Car in 2022 in Canada

Posted on March 29, 2022

If you're wondering when you should buy a car in 2022, you should consider making a decision soon. There are a few variables at play, and you need to take them into consideration to understand “why” is a good time to buy a new car.

There is a shortage of new cars throughout the world

The number of new cars being produced in Canada has been reduced to all-time lows.

While carmakers are eager to ramp up production, they cannot get the microchips needed to produce the key components.

This shortage is due to supply chain bottlenecks that have been exacerbated by the conflict in Europe.

No one is able to predict when these shortages will end, but if history has taught us anything, we are in for a protracted period of uncertainty

Credit markets are tightening up

The Bank of Canada recently increased the prime rate to 50 basis points to try and slow inflation, which was tracking at 5.1% monthly!

This was before the surge in gas prices has hit the average Canadian consumer right in the wallet.

Gas is now over $2 per litre at the pumps, and diesel costs even more. Everything in Canada is shipped by truck or rail, and those vehicles rely on diesel.

It may take a few weeks, but these recent spikes in fuel prices are going to drive up the costs for everything.

When should you Buy a Car in 2022?

While there is a considerable amount of fear in the economy, especially with the uncertainty in Europe and the risk of another world war, you as the average consumer need to lead a normal life and can take advantage of this once-in-a-generation opportunity.

The credit markets are tight, but lenders need to issue loans, or they will go out of business.

If you have decent credit, you can still get a car loan in Dunnville, but you will need to move fast.

To access the best interest rates on a new Dunnville car loan, your score needs to be over 700. Even if your credit score is below 700, you should still go forward and buy a car.

The reasoning behind this is that most people will put off buying a vehicle and wait to see what will happen in Europe; this “waiting” will help lower the demand for cars.

Carmakers and the companies that offer car loans are aware of this and will pull out all the stops to try and get deals done.

Finding the deal that is right for you

There is a plethora of lenders that offer car loans online, but they are not a viable option. Instead, what you should do is connect with a local car dealership.

The dealership is able to get you the best car loans through its extensive network of lenders. Another benefit of going through a dealership is their ability to help you even if you have credit issues, but you should contact them soon.

With each passing day, the credit market gets tighter, and your borrowing costs increase, so contact the dealership right away.

We’d love to help you find a great priced car loan. 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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