Getting Your First Car Loan in Canada

 

If you're a new immigrant to Canada, there are many things you're going to want to do to settle in. Buying a new car could come in very handy to drive you to work, school or shopping trips. You might not know what you need to do to start this process, so we'll help you out to make it all easier for you.

What You Need

There are a few things you'll need first to buy a car, including a Canadian driver's license, car insurance, and vehicle registration. You will also need to get them in that order as each item requires the preceding one.

Should You Get New Or Used?

There are pros and cons to both of these options, so you'll need to think about which route you're going to take. New vehicles offer the latest safety and technological enhancements, while used vehicles will offer comparable features but with enhanced affordability. Go over your options and decide which route is best for you.

Building Credit

If you're a new immigrant to Canada, you're not going to have a credit history for banks and lenders to look at. This might make them hesitate a bit when it comes to approving your loan or lease. You can build your credit score by getting credit cards or taking out smaller loans. This will make it easier to get approved for a loan or lease.

Difference Between Lease and Finance

Leasing a car is a lot like renting one long-term, you have it and use it for a set amount of time and then give it back at the end. The benefit of this is that you get a new car every couple of years and your monthly payments could be lower. Financing is essentially taking out a loan and paying for the car outright, then paying the loan back monthly. In this case, you will own the vehicle and can do what you want with it, but your payments and term might be higher.

Programs That Help Immigrants

Lucky for you, many banks and manufacturers realize that starting a new life in another country can be difficult sometimes, so they have programs in place that can help you get a car. Our Credit Specialists at Weins Canada will work with the manufacturers and banks to help you get approved for a car, even if you have no prior credit.

New citizen to Canada?

Apply for credit today