Car loans are eating up a growing chunk of Canadians' monthly budgets

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That’s due to the exponential rise in the price of vehicles, with an average new car now costing more than $61,000, according to the AutoTrader.ca Price Index. The average used car is around $39,000.Why are vehicles so expensive these days? There have not been enough vehicles available to meet the demand in the marketplace because of the semiconductor chip shortages.

The result of high prices seems to be more older cars on the road, either people keeping their cars longer or purchasing much older vehicles. Yes, people are buying much older used vehicles – around 10 years old – because there’s such a shortage of everything and they’re more affordable. It will take at least another year before we’re sort of back to where we were in 2019. Prices should come down somewhat from the current high, but they’re not going to be what they were in 2019.Must-reads from Globe Advisor this week How this money manager is preparing for the potential for more interest rate hikes Portfolio manager Geoffrey Heward believes central banks aren’t done hiking interest rates this year and is positioning his portfolio to withstand the economic fallout he sees ahead.

Advisors who’ve left the big banks find varying levels of support Many advisors at bank-owned firms may wonder if the grass is greener on the other side. Moving to an independent dealer, portfolio manager, investment counsellor or family office can promise more freedom to develop their business. Yet, the support services available at those wealth management firms vary. Banks and bank-owned dealers offer advisors abundant internal support for a fee.

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Car loans are eating up a growing chunk of Canadians’ monthly budgetsAndrew King from DesRosiers Automotive Consultants reports that as car loans rise, some consumers purchase much older vehicles to make ends meeet
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Car loans are eating up a growing chunk of Canadians' monthly budgetsAndrew King from DesRosiers Automotive Consultants reports that as car loans rise, some consumers purchase much older vehicles to make ends meet.
Source: BurnabyNOW_News - 🏆 14. / 77 Read more »