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Buying a Car as a Newcomer to Canada: Full Guide

Buying a Car as a Newcomer to Canada: Full Guide

Canada is a vast country. You only realize just how vast once you arrive and see that people travel a hundred miles to see friends for dinner and think nothing of it or when road trips could take a whole day just to get to the first destination. That means knowing how to buy a car as a newcomer to Canada is one of the most important things to know!


To help with that, our Woodstock car loan team outlines what you’ll need to do.


The car buying process is likely similar to what you’re used to in your old country. Perform your research, check cars deliver the features you need and that you can afford the car you want.


The rest we’ll outline below.

Car Loans for New Canadians


As a newcomer to Canada, you won’t have much of a credit record as you start again once you arrive. That means most standard lenders won’t offer car loans. Some major banks will and have special products for new immigrants into the country though.


You can also access the equivalent of a bad credit car loan. Specialist loan products designed for people with low credit scores. While the cause of those scores will be different, the effect will be the same.


Like all types of finance, you’ll need to pass an affordability check. It pays to perform your own checks first to ensure you can afford repayments and would be able to qualify for the loan.


This is loan prequalification. You can do it online or we can help you with that. It’s an informal process that asks a couple of questions around income and money to see if you could qualify for a loan if you applied for one.


It isn’t a loan application and won’t impact your credit score. It’s like a practice run.


Car Loan Paperwork


If it all works out, you’ll then need to get your paperwork together. That will include proof of ID, proof of address, proof of a job or income, bank statements, Canadian citizenship card, driver’s licence and anything else you might need to prove you can afford the loan.


You’ll also need car insurance as you cannot drive the car without it. We can help you with that on the day if you like.


Once you have the paperwork together you can go for car loan preapproval. This is a more formal process that mimics a real application. It will give you a better idea of the interest rate you’ll be charged, the loan term and any other information you might need.


Preapproval can impact your credit score so try to do this only once.


The actual loan application process is fairly straightforward. Fill in the form, include evidence as required, answer any questions and make the application as complete as you can.


We can help with the majority of these things and can help you through the process. We can even help find you the perfect first Canadian car!


Being a newcomer to Canada is an exciting time. You chose a lovely place to make a new home and we hope you enjoy your time here! So, Are you ready to buy a car as a newcomer to Canada? Come see us when you are!


If you're ready for a car loan in Southern Ontario, we'd love to help with that! simply fill in the form below to get started.

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    Categories: Car News