How Canadian Dealers Get Rid of Used Cars That Go Unsold
As of July 27, there are thousands of 2016 to 2018 cars in dealer lots–27,000 in Ontario, 7,000 in BC, and 6,000 in Alberta.1 Dealers want them out by August. Due to COVID-19, vehicles come with free delivery to your home. And now, dealers are working especially hard to get rid of barely used vehicles—regardless of your credit. Because of this special program for those working full-time or employees of essential workplaces, now seems to be the best time for a car buyer.
The industry knows there's a ton of used cars with only 10,000, 5,000, and even 1,000 kilometers. There are people who get bored with cars very quickly, and they swap them out several times a year.
These car owners can afford to do this because they're leasing or taking advantage of today's low interest rates. Of course, when interest rates increase, there will not be all of these barely used cars on the market. And if you're quick, you'll get a car with low monthly payments.
And for those that can't afford the cars, they're being repo'd and put back on the market.
The third source of these used cars is from dealer demo or loaner programs. The fourth source is company vehicles. Even many automakers offer free cars to their employees. And these cars are cycled quickly and put on the market.
To get these barely used cars, a special program may allow employees with any credit and $0 down to get a car loan worth up to $40,000–to rebuild or improve their credit. A recent applicant had a 520 credit score and received a $26,000 car loan. And, another got a used 2019 car with only 120 kilometers on it. This small difference made his "used" car cost $10,000 less than a new car would've been. This program has a 95% acceptance, and you may qualify in as little as 24 hours.
These are the two requirements: you can prove your income for the last 3 months, and it's at least $2k monthly.
Start below and get dealer's special online-only finance pricing (this avoids the headache of in-person negotiating). Because dealers need to move cars – many drivers with good, bad, and no credit are getting loans if you meet these two requirements. See what you qualify for, and you may get approved for a low monthly payment auto loan.