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Buying a new car when you are a landed immigrant in Canada

Buying a new car when you are a landed immigrant in Canada

The population in Canada is growing by leaps and bounds; this is even though Covid restricted travel for the better part of two years.

Something that landed immigrants and permanent residents alike would like to do is buy a car in Canada, but the way cars are financed here is different than in other countries.

Our Waterdown auto loans team are going to show you what are the steps to take so you can buy a new car and get a good deal in the process.

Your social insurance number (SIN) is key

Lenders in Canada look at your credit score when determining whether to approve a car loan and at what interest rate.

The simplest way to access your credit score is to use your date of birth and social insurance number (SIN), you do not have to give your SIN, but it helps if your name is fairly common in Canada.

You may not realize it, but if you have a cellphone bill or any other utility bill, then you already have a credit profile.

In Canada, your credit score is calculated by looking at the total amount of debt you are carrying in relation to the total amount of available credit.

This credit utilization, coupled with your repayment history, is what goes into the calculation of a credit score.

Credit scores can range from 400-800 depending on whether you are using TransUnion or Equifax.

You can sign up for free access to your credit score and report; it would be a good habit to keep track of your credit score; even if you don’t use credit often, identity theft is a real problem in the digital age.

Selecting the right car for your needs

Depending on which country you come from, there are certain car brands that seem better than others.

If you want peace of mind, Ford would be a good choice because they were around when the auto industry was just starting, and the vehicles you drive are built here in Canada, so you have peace of mind knowing it was built right.

Where to get car loans in Waterdown

Your local bank may offer auto loans, but there is no guarantee the interest rate will be competitive. Instead of taking chances, you should head over to your local dealership and find out what loan options are currently available to you.

The dealership has experience helping other new Canadians and will be able to structure your loan so it is affordable and you can still get the car you want.

While some cultures may frown on taking on debt, in Canada, this is just the way of life and something that everyone does, so now that you know how to buy a car in Canada, reach out to the dealership right now and begin the process.

When you’re ready for a car lease or loan, get in touch with the Waterdown auto loan experts at Northway Ford for great deals on auto finance.

Categories: Car Loan

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