Why you should consider buying a new electric car sooner rather than later

Why you should consider buying a new electric car sooner rather than later

Posted on August 15, 2022

If you've been thinking about whether or not now is a good time to buy an electric car, we'll ask you a few questions, and your answers will make it very clear which way to go.

What is the overall condition of your current vehicle?

The first thing you need to do is decide if your current vehicle can meet your needs now and in the future.

Only you can answer this question.

If your car has a lot of miles on it or is starting to need a lot of repairs, you should think about getting a new one.

Even if your old car has a lot of miles on it, you will be able to get top dollar for it as a trade-in because the used car market is growing rapidly throughout Canada.

Have you saved enough money to buy a new electric car?

How you answer this question will have a big effect on what kind of car you can buy.

Most Canadians pay around $600 per month on their car loans, but this varies. You should look at your budget more closely to see what works for you.

When you look at your budget, make sure to account for the fact that prices are going up for everything because of inflation.

Now would be a good time to try to cut any unnecessary spending from your budget so that you have more money for your car budget.

When deciding whether or not to give you a loan, potential lenders will also look at how much money you make compared to how much you owe.

Most lenders will let you have up to 40 percent of your income go toward debt, but this can change.

Have you paid your bills on time?

This is very important, especially now that interest rates are going up so quickly.

You can check your credit score for free with apps like Koho if you don't know what it is. If you want prime interest rate car loans, your credit score needs to be higher than 700, but you should still try to get a loan even if it is lower.

The Bank of Canada is raising interest rates to try to stop inflation. Only time will tell if it works.

But when interest rates go up, it makes it more expensive for all Canadians to borrow money. If you lock in a low-rate car loan today, you will save money over the life of the loan.

How to get the best deal on a brand-new electric car

It may seem like the Internet is a good choice, but it's not. If you want the best terms on an auto loan, you should go to a local car dealer.

Most of the cars you see online are no longer available. These dealerships have cars in stock that you could drive home today.

These dealerships also know all the lenders in Canada, so even if you have bad credit, you can still get a car loan through them.

But it's up to you to go to the car dealer today and start the process. There are going to be big increases in interest rates in the Canadian economy, so you should get an electric car loan as soon as possible.

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