Why Now a Good Time to Buy a New Vehicle in Victoria BC
Why Now a Good Time to Buy a New Vehicle. Let’s get into it.
We have all seen the news. There are supply chain disruptions, microchip shortages, rising used car prices, empty car lots. But what exactly is happening?
We’re not going to lie. The pandemic has been extremely disruptive to the auto industry. Since the start of the pandemic, the industry around the globe has been plagued with Covid-related auto parts manufacturing shutdowns. Plus, worldwide microchip shortages have been an issue across all industries – from computers, to cars, to the stuttering failed launch of the new PS5. There just aren’t enough to go around, but our appetite for electronics has only increased since March 2020.
This has all led to a huge decline in new vehicle production. At the same time, generous Government programs and strong savings rates have stimulated demand for those same vehicles.
So, why is now a good time to buy a new vehicle? Let’s take a look.
Interest rates are about to rise
Governments around the world have all been signaling pending increases to prime interest rates to help curb price inflation. Finance rates for car loans are fixed over the term so by buying now rather than later will save your thousands in potential interest charges. Just a 2% difference in interest rate on a finance contract of $40,000 over 84 months represents $2900 in additional interest over the term of the loan. Since auto loans are for fixed rates, you don’t have to worry about your payment going up when interest rates rise.
Your trade-in value is at an all time high
According to Kelly Blue Book, the average used vehicle is worth almost 40% more than it was prior to the pandemic. It makes sense to maximize your trade value now, before supply increases and values drop. Click here to see what your car is worth.
Fair New Vehicle Pricing
While used vehicle prices have risen tremendously, there hasn’t been much of an increase in pricing for new Kia vehicles. Since Kia Victoria hasn’t marked up vehicles, you can still pay a reasonable amount for a new vehicle.
Now may be one of the best times ever to buy a new car. You’ll most likely have to order your vehicle, which can take as little as a few weeks to several months. But that just means that you’ll finally get exactly what they’re looking for – model, accessories, colour, and interior. No settling for your second choice in 2022. Build your dream Kia to order here. Check out our new inventory here.