What new immigrants need to know about electric car financing

What new immigrants need to know about electric car financing

Posted on August 19, 2022

Canada has become heavily reliant on immigration to keep the economy going; the current birthdate is not sufficient to maintain the population, which is aging rapidly in Canada. If you are a new immigrant, welcome to the true north, strong and free!

Something that will become immediately obvious is the need for a personal vehicle to get to work and just live a normal life.

Most Canadians simply do not have enough cash on hand to buy an electric car with cash and must take out a car loan.

The process of getting a car loan may seem daunting for new immigrants to Canada, so we are going to show you all of the steps that are involved in the process.

Credit score required to get an electric car loan

All lenders in Canada first look at your credit score to determine how likely you will repay the electric car loan as agreed.

The higher your credit score, the less likely you will default on the loan. Since these transactions always carry risk, the lender will charge an interest rate based on the perceived risk.

Credit scores in Canada can range from 300-900, but to get the best terms, a credit score over 720 should be fine.

You should look up your credit score right now with TransUnion and Equifax, the service is free, and it will let you know whether your credit score is high enough to secure the best financing terms.

If you don’t have a high credit score or any credit at all, sign up for a secured credit card being offered by Home Trust, it will help you build a strong credit score in no time at all.

Do you earn enough money to qualify for a car loan?

The next thing that lenders will look at after your credit score is whether you are earning enough income to service the car loan plus your current obligations.

If you are working a job where you get paid an hourly rate or salary, your payslips will be sufficient to show the prospective lender how much you earn on a monthly basis.

This monthly average is important for lenders trying to calculate just how much debt you can afford to service.

Where to find the best car loans for new immigrants in Canada

When looking for the best car loans for new immigrants in Canada, do not rely on websites but instead go to your local car dealership.

The local dealership has helped other new immigrants like you secure a great car loan, so you don’t have to worry about whether you are going to get a good deal.

What you should do is contact your local car dealership now and book a test drive to find the car you like the most. Buying a new car is a major milestone as a new Canadian and a moment that should be savoured.

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