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Tips on how to new Canadians can get a new car loan

Tips on how to new Canadians can get a new car loan

The population of Canada is being driven by immigration. If you are new to Canada and want to buy a car, the information needed to make the most of your money may seem intimidating.

But, our Stoney Creek auto loans team are going to give you everything you need to know about car loans as a new immigrant.

Credit and not cash is king

As a new Canadian, you may have been raised that credit is something to be avoided and to always pay cash.

While paying cash is a great way to control debt, there are some things you will need to finance because it would take too long to save up enough cash, most Canadians are already carrying some type of consumer debt.

The average price of a new car in Canada is well over $40,000 and that was before the onset of the pandemic.

There is a shortage of new and used cars, this lack of inventory coupled with a spike in demand is pushing prices higher and it shows no signs of slowing down.

With prices on the rise, the only way you can buy a car in Canada is by getting a Stoney Creek car loan.

Sources of car loans in Stoney Creek

The bank or credit union that you have your bank account with may seem like a logical source of car loans. This is just one of many options for your consideration.

Banks will typically have low interest rates but those rates are reserved for the most creditworthy borrowers. Your credit score will need to be over 680 and your income will need to be stable to access those preferential rates.

There are online lenders that you can apply for a loan. The pandemic has conditioned us to do most of our shopping online but these online lenders will not have the best terms and they do not have any cars that you can buy.

If you want the perfect mix of great financing terms and selection, you will need to go to a local car dealership. There are numerous benefits associated with going to a local car dealership.

The dealership has both new and used cars that you can test drive and determine which one you like the most. When you have found the car you like, the dealership can help find lenders that will give you the best interest rate based on your credit and income.

If your credit score is not high or you do not have any established credit, the dealership is able to show you how to raise your credit score in a short amount of time.

As a new Canadian, you should not let your lack of an established credit score prevent you from buying a new car.

Just remember that the dealership is there to help you, they want you to have a memorable car buying experience.

The dealership can help you get insurance for your car, something that is required to drive in Canada and you will need it before driving your new car off the lot.

Owning a car is a major milestone so enjoy it by contacting your local car dealership today.

If you need help or advice on anything to do with auto loans in Stoney Creek, contact Car Nation Canada today, we can help!

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