It looks as though pressures on the Canadian vehicle market may start to ease up in 2023. As demand stabilises and inventory expands, prices could drop by up to 20% for pre-owned vehicles, and 5% for new models. This could also lead to cheaper auto financing in Atlantic Canada. However, with an economy still stumbling through the post-pandemic landscape, wise buyers are taking advice from the financial experts at Laneway Auto Loans and Sales and checking their finances before diving into a multi-year commitment like getting a car. Here are some pre-purchase points to ponder:
- make sure your job is stable, with enough financial headroom to pay off such a major investment, taking into account unpredictable factors such as inflation and interest rates that could eat into your monthly budget;
- check your credit score, as this is a major factor in the interest rates offered you by lenders, saving (or costing) you thousands of dollars over the term of your loan;
- lowering your debt service ratio may also lead to a lower interest rate, as lenders calculate what percentage of your income is already paying off previous debts;
- think about your insurance costs, as newer vehicles have expensive parts and are also more attractive to potential thieves, so their premiums are generally higher;
- consider going electric, as EV ownership is on the rise, with significant incentives for buyers, including fuel savings of up to $ 8000 a year and guaranteed convenience as the electric top-up network expands and new models are introduced constantly, during the run-up to Canada going all-electric in 2035.
Getting The Best Auto Loan Terms in New Brunswick
This huge range of rates and terms can translate to many thousands of dollars during the lifetime of your car. That’s why a few hours spent checking out auto loans offered by trustworthy dealerships in New Brunswick may save you almost the same amount that you plan to pay for your car. It’s also a good idea to talk to an auto financing specialist about ways of avoiding negative equity – when the resale price of your car drops below the amount still payable on your loan. Delaying your purchase for a few months while you beef up your credit score and save for a larger deposit is yet another way of getting the biggest bang for your buck, when financing your next set of wheels.
Finding the Best Auto Financing Rates in the Maritimes
In today’s online world, getting competitive auto loan quotes is a fast and easy process, with three main options:
Dealerships usually offer the best car loan rates in New Brunswick, because they are flexible and eager to sell. They may partner with outside lenders (including major banks and automakers) and may also offer in-house financing. To boost your bargaining power, apply for a pre-approved car loan before getting into discussions with the sales staff;
Banks and Credit Unions may still offer competitive interest rates, although they have no interest in selling cars, particularly to existing account holders, who may be able to negotiate special rates. Check if your auto loan is secured, the interest rate will generally be lower than for unsecured loans.
Online Brokers are the perfect solution for car buyers with credit scores of 660, who need help with auto financing in New Brunswick. Partnered with hundreds of dealers, they can match even high-risk borrowers with multiple loan offers, although at higher interest rates. Offering a generous down payment improves your chances of finding a car loan at an acceptable rate.
On the Upside
As car lots fill up with exciting new inventory, the Laneway auto loan consultants are forecasting a buyer’s market in 2023, packed with special offers and incentives to purchase, including great interest rates. When it comes to auto loans, we always have the best deal for you.