As residents know only too well, the P.E.I. public transportation system is limited. This makes vehicle ownership close to crucial, for a comfortable family life. But with wages lower than in many other places in Canada and jobs in short supply, buying a car can be a tough task. However, there’s always a way to lower car costs on PEI, particularly with a little help from the auto financing consultants at Canada East Rides.
Offsetting Higher Factory Floor Prices
All over the world, vehicle prices soared between 2020 and 2022. Quite logically, used vehicle prices rose even faster, pumped up by demands diverted from the zero-kilometre market. The surge was so significant that Statistics Canada began tracking used vehicle prices in mid-2022. This across-the-board uptrend is now forcing buyers (and dealers too!) to find other ways of lowering car ownership costs.
How to Lower Car Costs in Fredericton
P.E.I. drivers are lucky enough to enjoy Canada’s second-lowest auto insurance rates. Only Québec averaging out at a lower rate. In 2004, insurance reform capped minor injury awards, resulting in lower rates for Islanders. To maximize savings, it pays to shop around for a better deal. Here are eight times when it could well pay off to shop around for a lower auto insurance rate:
- when registered drivers swap their G2 probationary status for an unrestricted driver’s license, or when they turn 25, as young and experienced drivers are higher risks and thus pay higher insurance rates;
- when buying a new (or new-to-you) car, models, their safety features, and age all affect your insurance premium;
- when moving house, as auto theft rates vary by district, and a garaged vehicle is also at lower risk for theft or vandalism;
- when getting married or moving in together, as your partner’s driving record affects your joint rate;
- when getting divorced or separated, as starting over with a new insurance provider may be beneficial, particularly if your ex has a patchy driving record;
- when buying a home, as bundling your house auto insurance through a single provider can save you up to 20% in premiums;
- when your daily commute changes, your insurance rate could drop, if you spend less time behind the wheel;
- when traffic tickets are cleared from your record (usually after three years), a clean record could save you money through a new insurer.
Think Electric for Lower Car Costs on PEI
Canadians may be eligible for a $10,000 discount when purchasing a new, fully-electric vehicle. This incentive is offered by the Federal Government. PEI residents can save more on electric vehicles through a new $500,000 incentive program announced in January 2023. Bit Islanders can enjoy a $5,000 discount on new or used electric cars from local dealerships. It also offers free Level 2 charging stations and a $2,500 bonus for plug-in hybrids. These incentives are aligned with the goal of seeing all Maritimers driving electric vehicles by 2030, meeting net-zero emissions targets. The intention is to help local drivers cope with the higher up-front costs of EVs, while saving in fuel costs.
Takeaway: Early adopters are already reaping generous benefits from their farsighted approach to getting around the Island. So if you’d like to cash in on these EV benefits, the auto financing experts at Canada East Rides will steer you expertly along the route to innovation. The best-value cars in P.E.I. are right here! Complete this form and browse a great selection of affordable wheels in Fredericton.