Why car prices haven't gone down in Hamilton

Why car prices haven't gone down in Hamilton

Posted on June 27, 2022

Have you been waiting for car prices to drop so you can take advantage of a bargain? You are not the only Canadian waiting to get a bargain, but your window of opportunity may be closing, as our Hamilton auto loans team explains.

Inflation is causing carmakers and everyone in the economy to raise prices, and if you wait too long, you may have to pay more than expected for a new car.

What type of car (gas-powered, hybrid, or EV) are you in the market for?

The answer to this question will have both short- and long-term economic consequences.

While a gas-powered car may appear to be a better bargain today, gas prices are at all-time highs and will continue to increase.

Anyone who was hoping and wishing for prices to drop are in for a rude awakening; these prices are primarily due to the carbon tax that was introduced by the Justin Trudeau government.

Something most Canadians wonder (myself included), we have all the oil we could ever need in Alberta; why not tap into those reserves and provide some much-needed relief?

These carbon taxes make it prohibitively expensive to extract, refine, and distribute petroleum to Canadians, even though we export massive amounts of it to the USA.

We are not politically affiliated and try to stay as unbiased as possible, but the next time you feel the pain at the pump, remember it was a politician and not the free market causing those high prices!

Carmakers are impacted by inflation

The runaway inflation that we are experiencing in Canada is hitting carmakers especially hard. They need to source for raw materials and pay their workers for the top-quality vehicles being manufactured.

For a while, the carmakers could absorb these added costs, but they will need to pass them on to you, the consumer, not by choice but by necessity.

Until inflation comes under control, carmakers will have to balance protecting their customers and keeping the proverbial lights on.

Financing a new car is more challenging

Even if your credit is perfect, you are going to be paying more to finance anything. Tiff Macklem at the Bank of Canada has the nearly impossible task of taming the inflation beast.

The only way that the central bank can do this is by raising interest rates.

These skyrocketing interest rates should work but could also send us spiralling into a recession overnight, so we can see why Tiff is up late at night trying to find a workable solution.

You can still get a good deal in Hamilton

This is not all gloom and doom, though, you can still get a good deal, but you have to move fast and work with a local car dealership.

Most dealerships can get you a car loan at a better than prime interstate rate; even if your credit is a little rough around the edges, now is the time to get a car loan.

By the third quarter of 2022, interest rates will be gaining more upward momentum, and your window of opportunity will close.

Contact your local dealership now and start test-driving their vehicles; this will be by far the best call you made in some time.

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

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