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How to get a Car Loan as a Canadian Immigrant

How to get a Car Loan as a Canadian Immigrant

New immigrants to Canada who need to buy a new car will have to secure a car loan in Port Colburn. There are many different ways to secure a car loan and we will explain what steps you must take and how to get the most competitive terms.


What is your credit score?


To secure a car loan as a Canadian immigrant in Port Colburn, you need a satisfactory credit score and sufficient stable income to meet the car loan underwriting requirements.


To access the best interest rates, you need a credit score of 720 or higher; you can still get a decent interest rate if your credit score is over 600, but you should aim for the highest score possible.


If you are not sure what your credit score is, you could sign up with Credit Karma for free.


When you have access to your credit scores, you will know where you stand.


We should mention that the credit score you see on Credit Karma and other platforms is just for reference. Lenders have their own scoring models, and so you may have a 750 with TransUnion, but the lender is using Equifax, and based on their scoring model, your credit score is 700.


These variations do happen, and there is nothing we can do about them.


The companies that offer car loans need to have a large volume of loans to generate a profit, so rest assured that if your credit score is high, there is no shortage of lenders that are willing to do business with you.


Do you have reliable and verifiable sources of income?


After reviewing your credit score, the next thing that potential lenders are going to look at is your income to see if you earn enough to service the loan.


The average monthly car loan payment in Canada is just over $500. You also need to cover the running costs that come with owning a car, so budget around $1,000 to be on the safe side.


When reviewing your income, lenders will ask for your latest payslip and a copy of your income tax assessment for last year.


This will give the lenders insight into your average monthly income and whether you can afford to service the new car loan.


How to find a great car loan as a Canadian Immigrant


You may feel a little anxious knowing where to get the best car loans in Port Colburn.


With all of the information available online, it can be tough knowing where to go.


The best source of competitive car loans in Canada is through your local car dealership.


These dealerships have a vast network of lenders they work with, so they can review your credit profile and select the lenders that are going to give you the best overall deal.


If you have any credit questions or challenges, the dealership has credit experts on staff that will show you how to get the best credit score so you can enjoy the lowest interest rates in the future.


Now that you know where to get the best new immigrant car loans in Canada, you can contact the dealership right away.


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

Categories: Car Loan

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