What new immigrants need to know about car loans in Canada

What new immigrants need to know about car loans in Canada

Posted on July 25, 2022

Canada has opened up its doors to immigrants from around the world. With the free healthcare and high quality of life in this country, it comes as no surprise how many people want to call this place home.

If you are a new immigrant, welcome to the true north, strong and free.

To help your transition, our Vineland car loans team are going to cover the steps you should take when buying your first of many near cars in Canada.

Are you a landed immigrant, permanent resident, or citizen?

The classification impacts the documentation you will need to submit when applying for a Vineland car loan.

Before you do anything else, have you converted your license over to a provincial license where you are living?

If you haven’t converted your license or need to get your first, you must go through the department of motor vehicles in your province.

Technically, you can buy a car without a license but having a license gives you the ability to drive your car home from the dealership on the day.

Checking your credit report/score

Something that you must do as soon as you receive a social insurance number (SIN) is tracking your credit score.

Everything in Canada revolves around credit, and if you don’t monitor it, you could find yourself in a situation where you need to rent an apartment or buy a car and not be able to because of mistakes in your credit report.

The average credit score in Canada at the time of writing this is around 660, but that could change at any time.

You should try to get your score as high as possible, but if you are in the 680 or higher range, then you are considered to be a good credit risk.

Income verification

Lenders will want to know about your finances, specifically how much cash you are earning per month and how long you have been earning it.

The longer you have been working at your current job, the more stable it appears.

Lenders want someone who has a stable, predictable income, so they know you will have the funds needed to pay back the loan as agreed.

Finding the car that is right for you

You should never try to make an important financial decision like buying a car on your own; there are too many variables at play.

The best option is to work with a dealership in your area, one that has a well-established reputation for providing world-class customer service and support.

When you go through the local dealership, they will be able to find the lender who will give you the most competitive car loan based on your finances.

The dealership also helps with all of the paperwork that goes into buying a car, so you never have to worry about registration, license plates, or where to buy insurance; the dealership will do all of the heavy lifting for you, so you can focus on enjoying your new car buying experience.

To truly experience Canada, you need a car, and if you stick with this approach, your car buying experience is going to be a truly memorable one.

Contact Unique Chrysler for help, advice and competitive Vineland car finance and leasing.

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