Why you should consider buying an EV in 2022

Why you should consider buying an EV in 2022

Posted on June 21, 2022

With rising gas prices in Canada, you should consider buying an EV as your next vehicle.

While gas-powered cars are still mainstream, it is just a matter of time before these high gas prices make owning a gas-powered car untenable, as our Flamborough auto loans team explains.

Misconceptions about EVs

The majority of consumers, when they hear the word EV, think of Tesla, but that is just one company of many that are producing EVs.

One of the biggest indicators that EVs are here to stay was when major carmakers like Ford rolled out the electric Mustang; it was a bold statement that Ford is putting its tremendous talent and resources behind EVs.

The first generation of EVs had limited range, and there were not many charging stations that could allow long-distance driving with complete peace of mind.

Those days are passed, though, and with each passing month, the sheer number of charging stations opening up in Canada is increasing.

Also, the retail prices of EVs have come down and are not comparable to what you would pay for a similar model gas-powered vehicle.

Financing EVs has become easier

Something that will make your life easier is the ease of financing an EV. With the limited number of first-generation EVs on the market, lenders did not know if there would be a robust aftermarket for these vehicles; this aftermarket is needed when trying to determine what the resale value of the EV would be at the end of the loan.

The conditions are perfect for making the switch to an EV and start saving money on fuel, but you need a game plan if you want to come out ahead.

Interest rates are skyrocketing

This is by far one of the primary reasons you should move forward with the purchase of a new car.

The days of cheap credit are gone, and with inflation running away, the only way the Bank of Canada is able to slow this runaway inflation is by increasing the prime interest rate.

Even if you have fantastic credit, your borrowing costs are going to increase. The only way to avoid these higher rates is by securing a lower-interest-rate car loan in Flamborough.

To access the best interest rates, you will need the following.

• Credit score over 700, you can still get a car loan if your credit score is at least 600, but to get the best terms, your score must exceed 700.
• Stable income, if you just started a job, lenders will not feel confident in approving a new car loan. You should be on the job for at least six months and preferably one year.
• Verifiable income is absolutely vital, the pandemic has forced lenders to revamp their loan underwriting, and income verification is critical; you cannot get a car loan if your income cannot be substantiated.

Where to get the best deal on your next EV purchase

To secure the best financing terms, you must contact your local car dealership. The local dealerships already have lenders willing to give you a competitive loan, and the same dealership has an extensive fleet of vehicles in its inventory that you can choose from.

You need to pick up the phone and contact the dealerships as soon as possible. The sooner you reach out to the dealership, the more money you will be saving.

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

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