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Best way for new Canadian immigrants to finance a car

Best way for new Canadian immigrants to finance a car

Foreigners taking their first steps on Canadian soil will be astounded by the vastness of the country.

Canada is one of the world's largest countries by total area, yet its population of under 39 million is concentrated near its southern border with the United States.

If you want to live a regular life in Canada, you'll need a car unless you happen to be in a city like Toronto, where the TTC provides enough public transportation.

However, most of us can only hope one day to use public transit.

Tips for buying a car in Grimsby

Canadians are savvy car buyers; around one vehicle per person is out on the road. (after receiving your license at 16, all you can think about is buying a car.)

However, figuring out how to actually get one is a whole other ballgame. In Canada, almost all prospective automobile buyers finance their purchase with a loan, whether they're looking to buy new or used.

To qualify for vehicle finance in Grimsby, you need a consistent income and a credit score that falls within the range established by lenders as meeting their minimum underwriting standards.

While many new Canadians were raised in a society that frowns upon carrying credit card balances, the reality is that few people can afford to pay cash for a car, new or used.

You need to know this about auto loans and credit ratings

Signing up with credit reporting agencies like TransUnion and Equifax will reveal your credit score. Don't worry, it won't cost you a dime.

Each and every adult in Canada has a credit report that these companies maintain, and yours is no exception.

If you have a cell phone, you probably have a credit history as well.

Your credit score could be in the low 400s or as high as 900, depending on the scoring algorithm being used.

A credit score in the mid to high 600s is required for most types of credit and auto loans.

Credit scores are used by lenders to assess how risky it is to lend you money. Interest rates are proportional to the level of risk associated with a loan.

Maintaining a high credit score is easy if you follow a few basic steps

Do not make the mistake of trying to open a large number of new credit accounts all at once.

These "hard queries" will lower your credit score and make it appear as if you are having financial difficulties. Reduce your monthly loan payments as much as possible. In other words: always pay your bills on time.

Just follow these three simple rules, and you'll be on your way to a good credit score and the lowest possible interest rates on a vehicle loan, or any other major purchase.

In the market for a new car, which model are you considering?

It's easy to find excellent choices in Canada. Kia, Ford, Dodge, and Jeep are just few of the manufacturers offering hybrid and electric vehicles.

You should do business with a local car dealership that has a stellar reputation for customer satisfaction if you want to save money on a brand-new vehicle.

These car lots sell vehicles and work with customers of varying credit ratings to secure auto loans. Make a quick phone call or visit to the nearest dealership.

We will use all our skill and experience to deliver the lowest possible Grimsby auto loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.

Categories: Auto Loan

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