How to Buy a Car as a New Canadian Immigrant
How to Buy a Car as a New Canadian Immigrant
Posted on May 24, 2022
Canada is regarded as one of the most popular countries in the world for immigrants looking for a better way of life. If you want to buy a car as a new Canadian immigrant, our Flamborough auto loans team are going to help make the transition as smooth as possible.
Before we can start looking at your loan options, have you changed your driver's license to a new one in the province you are currently living in?
If you are living in Ontario, you would need to go through the Government of Ontario website; you will need to get your license translated into English if it is in a different language.
Now that your license has been switched over to a Canadian one, we can move forward and get your new car loan approved.
Canadians love their cars
Aside from hockey and maple syrup, Canadians love their cars, and frankly, they need to lead a normal life.
Canada is a massive country, and the lack of public transit forces us to drive. The average car loan in Canada is for a term of 60 months, and the monthly payment on that loan is $500 per month.
This can vary depending on the type of vehicle you choose, but now you have a general idea of what to expect.
Along with the actual car payment, you will need to pay for insurance and maintenance.
Gas prices are on the rise, so you should think about getting a hybrid that will reduce your fuel costs. An example of a hybrid that is made for life in Canada is a Jeep Wrangler 4XE.
Crash course in credit scores
Credit is everything in Canada; in some instances having good credit is more important than actual cash.
Your credit score ranges from 300-to 850 depending on which credit reporting agency you are using (TransUnion and/or Equifax)
If your credit score is over 700, you are doing great, and most lenders will give you a great interest rate.
However, don’t worry if your credit score is under 700; you can easily improve your credit score by ensuring your payments are made on time and reducing the total amount of debt you are carrying.
If you make your payments on time and keep your debt levels low, your credit score will always be high.
There is help available to you
One thing you will love about Canada, we are always eager to help. You are not alone when trying to get a car loan.
There are businesses in your area dedicated to this service.
Head over to your local car dealership and let them do all of the heavy lifting for you. The dealership will get you the best deal possible and take care of all the paperwork.
Another benefit of working with the dealership is you can take the cars for a test drive, and if you like the vehicle, you can drive it home the same day.
Now that you know how to buy a new car, why not head over to the dealership and celebrate this significant milestone as a new Canadian.
We’d love to help you buy a car as a new Canadian immigrant. Simply fill in the form below and we’ll get back to you ASAP or see our selection of new and used cars at our Burlington dealership.
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