Canada is heavily dependent on immigrants to bolster the population. New immigrants enjoy many benefits like access to universal healthcare, but they will also face a series of unique challenges.
One of the first challenges they will face is buying a new car in Canada.
The majority of Canadians have to take out a loan to buy a car; the average person does not have $50,000 or more just collecting dust inside their bank account.
However, since most new immigrants do not know how to navigate the Canadian financial system, we are going to show you the steps that are involved.
Do you have a stable source of income?
Prospective lenders want to be sure your income is stable, and they also need to know how much you will be bringing in every month. You should be working for at least six months and preferably a year; this will show your job and income is stable.
What is your credit score?
Prospective lenders also need to review your credit report to see whether you qualify for the loan. To secure a car loan with the most competitive interest rates, you need a credit score of 680 or higher.
Credit scores can range from 300 all the way up to 850 depending on which credit reporting agency you use; in Canada, there are two, TransUnion and Equifax.
If you do not have any credit at all, you could sign up for a secured credit card with Capital One; everyone is guaranteed approval, provided you are of legal age and not currently bankrupt.
You deposit money into a special account; this account is your “credit limit.”
Should your credit score be low, you could still qualify for a loan but at a higher interest rate. You should work on raising your credit score by paying your debts on time and reducing the total amount of debt you are carrying.
Selecting the right vehicle for your needs
There is a vast array of new and used cars to choose from, plus you need to decide between electric, hybrid, or conventional. Whatever type of vehicle you select, pick a brand that has been developed and used in Canada for a long time, a brand like Jeep.
Where to get a great car loan in Canada
You should not apply for a car loan online; the loans that are being offered are not competitive.
The best place to find a competitive car loan is by going through a dealership in your area; you will have access to the most competitive interest rates and greatest range of new and used cars to choose from.
The dealership has credit experts on staff who can show you how to repair your credit if you are facing credit issues. Now that you know how to get a car loan in Canada, why not head over to the dealership today and start going for test drives? This will be the best decision you made in a very long time.
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!