Car buying tips for New Canadians
Car buying tips for New Canadians
Posted on December 8, 2021
Canada is a massive country with a lot to offer and if you are a new Canadian, you will need a car. While most major cities have transit systems in place, the transit is not at a standard where you can get by without a car.
Our Hagersville auto loans team explains what you need to know and shares some useful tips for new Canadians who want to buy a car.
Buying your first new car
Do you have a Canadian driver's license? If you do not, then you should book an appointment with your local DMV and follow the steps to convert the license to a Canadian one ASAP.
What is your car-buying budget?
You will need to look at your monthly budget and see how much cash you have available for discretionary spending. This amount can go towards a car payment but you also need to leave room for gas, insurance, and routine maintenance.
If your budget allows, you should aim to buy a new car that comes with a warranty. The warranty will protect you from any unexpected major issues with the vehicle. Since cars are more complex, the average cost to repair one can be quite high.
Reviewing your credit score
In Canada, the only way to get financing is to have a good credit score. Your credit score could range anywhere from 300-800 and you want to be above 680 to get the best interest rate.
There are apps like Credit Karma that will let you review your credit score from your smartphone for free. If your credit score is under 680, you can still get a loan but the borrowing costs will be higher.
We will give you some pointers on how to raise your credit score in a little bit.
Documents you need to prepare
Prospective lenders will need to look at your payslips and/or income tax assessments to see how much money you are earning. If you are self-employed, then you should also bring along your bank statements.
The lender is going to average out your income every month and determine what is the maximum Hagersville car loan you can afford.
Where to turn for help
You should consider working with a car dealership in your area. The dealership has an inventory of new and used cars for you to take for a test drive.
The dealership also has the largest network of lenders, so you will be able to access the best possible terms based on your financial situation.
What makes these dealerships remarkable is their knowledge of credit and car loans in Hagersville.
We mentioned earlier about getting help boosting your credit score. The dealership credit experts will look at your credit report and give you a step-by-step outline on how to get your score over 680.
Since this is your first time buying a car in Canada, many questions will come up and the dealership is going to help you every step of the way.
What you should do is schedule an appointment with your local dealership and find out what options work best for you. Buying a new car is a major milestone and now that you know how to do it, you should move forward right away.
When you’re ready for a car lease or loan, get in touch with the Hagersville auto loan experts at Northway Ford for great deals on auto finance.