How to Finance a Great Car Loan in Hamilton Ontario
How to Finance a Great Car Loan in Hamilton Ontario
Posted on December 16, 2021
If you are thinking about buying a newer vehicle, you will need financing. The auto loan market in Hamilton has gone through some profound changes, so we are going to give you the information needed to make a better-informed buying decision.
Understanding the impact of supply and demand
Most of us are familiar with the term “supply and demand”. The car market is very sensitive to these forces.
Since the start of the pandemic, there has been a contraction in the total number of new and used cars that are available for sale.
Before the pandemic, there was a predictable supply of used cars as new cars were produced. The microchip shortage has reduced the total number of new cars being produced which has a knock-on effect on the number of used cars that are available.
According to the industry experts, we are looking at 2-3 years before production can catch up with demand but that is at best just a guess.
There is an appetite for electric vehicles (EVs) which are considerably more expensive than conventional gas-powered cars so the total number of new cars that would fall within your price range is reduced.
This is why you need to buy a car now before you are unable to find a suitable vehicle that works with your budget.
Accessing competitive auto loans in Canada
In the past you had two car loan options in Hamilton. You either went through your local bank or via the dealership in-house financing.
The dealerships would self-finance the purchase of new cars but as car prices rose, it became too costly for dealerships to offer these loans so they partnered with 3rd party lenders.
The Internet has made it easy to access financial products like car loans online. While shopping online can be easy, there are some things you must bear in mind.
You will never be able to get the lowest interest rates from the lenders you find online, they are not able to tap into the wholesale interest rates.
There is no way of knowing whether the personal information you provide online is safe. We live in an age of identity theft, so you should think twice before applying for a car loan with some obscure website.
Source of the best car loans in Hamilton
The best source of car loans in Canada without a doubt is through your local car dealership. These dealerships have a network of lenders they work with on a daily basis.
These lenders are able to give you prime interest rate car loans provided you meet the underwriting requirements. The dealership is able to review your credit report and determine which lender is the right one for you.
Another service offered by the dealership is their ability to give you practical, credit rebuilding advice which will help you save even more money in the future.
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