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2 Minute Guide to Buy a Car as a New Canadian

2 Minute Guide to Buy a Car as a New Canadian

Canada is working hard to attract immigrants from all over the world and if you are a new citizen or permanent resident, one of the first things you will need to do is buy a car as a new Canadian.

 

Living in Canada is great, but you will need a reliable vehicle to get to work, school, or any other activity you want to participate in.

 

Car payments are a fact of life in Canada

 

As a new resident in Canada, something that may surprise you is the sheer number of Canadians that eat, sleep, and breathe credit.

 

You may come from a country where debt is frowned upon or not widely available, but for most Canadians, having a car payment is just a fact of life. Most people do not have $50,000 or more they can put towards a car payment.

 

Even if you have that much cash in your bank account, you could invest it and earn a higher return instead of putting it all on buying a new car.

 

Reviewing your credit report

 

You should regularly check your credit score monthly; your credit score impacts how much interest you are charged when using credit.

 

Your credit score can also impact whether you get certain jobs or can rent an apartment, so you need to keep tabs on your credit score at all times.

 

Right now, to get a super competitive car loan, your credit score must be over 720.

 

Of course, you can get a car loan with a credit score below that amount, but the interest rates that these lenders charge will be noticeably higher.

 

Sources of the best car loans

 

Since you are new to Canada, you may not be aware of all the different companies that offer car loans.

 

Your first reaction may be to apply for a car loan through your local bank; while your local bank may offer car loans, the interest rate and terms may not be the most competitive.

 

In fact, you will not be able to find a great deal online, at least not by yourself. In this situation, you must turn to the industry experts who are there to serve your best interest.

 

Accessing the most competitive car loan for new Canadians

 

Head over to a local car dealership to access the most competitive car loans. The local dealerships have an extensive network of lenders they work with; these dealerships are going to shop around and pick the lender that will give you the most competitive terms.

 

These dealerships will also show you all of the steps that go into buying a car, like getting insurance.

 

Since you are buying a new car and having it financed, you will need to purchase comprehensive insurance.

 

The dealership will let you know where to find the best insurance terms and will also help register the new vehicle in your name.

 

You should contact the dealership immediately and start booking test drives now that you know how to get a car loan as a new Canadian.

 

We’d love to help you buy a car as a new Canadian. Simply fill in the form below and we’ll get back to you ASAP! 

 

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