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How to get a Car Loan as a New Immigrant in Copetown

How to get a Car Loan as a New Immigrant in Copetown

Those who need a car loan as a new immigrant in Copetown may be unsure what options are available.


Our Copetown car loans team are going to explain the steps that must be taken when trying to secure a competitive loan.


The first thing you need to bear in mind is that debt is a fact of life in Canada; some new immigrants may have been taught that debt is something to be avoided.


While having too much of anything can be bad for you, debt can help you lead a better quality of life when managed properly.


Establishing a strong credit score


When you were granted permanent residency (PR) in Canada, you would have received a temporary social insurance number and eventually your official social insurance number (SIN).


This number is unique and used by the government to identify you from all other Canadians.


The credit reporting agencies also use your SIN to track your financial activity when calculating your credit score.


A credit score is a 3-digit number that shows how likely you are to default on a payment arrangement.


The higher the score, the lower the risk of you not keeping your obligations. There are two major credit reporting agencies in Canada, TransUnion and Equifax; you can sign up for free credit monitoring with each one.


If you have a credit score over 680, you will have an easy time getting a car loan at competitive interest rates.


However, even if your credit score is under 600, if you need a vehicle, there are lenders that will approve your loan.


Establishing a budget to service your car loan


Something that all Canadians need to do, yourself included, is prepare a budget.


If you are not budgeting, how do you know if you will have enough money to cover all of your existing obligations plus the car payment?


A budget is not complicated; you just key in how much income you have and list all of your obligations, including the total amount owed and minimum amount due.


It will become clear after creating the budget how much money you can put towards a car payment.


The average car payment in Canada is just over $500, and the average car loan has a term of 84 months.


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


You will not find the best car loans at your local bank or online; the best source of car loans for new immigrants in Canada is through a local car dealership.


These dealerships have helped other immigrants and will be able to help you. The dealership will look at your financial particulars, including credit score and income, then identify which lenders are going to offer you the best deal.


The dealership can also help register the car in your name and select a suitable insurance provider.


If you have any credit issues, the dealership's in-house credit experts will also be able to give you helpful advice.


We have covered the key things you need to be aware of when trying to get a car loan as a new immigrant in Canada; the next step is to meet up with the local dealership.


We’d love to help you find a car loan as a new immigrant in Copetown. Simply fill in the form below and we’ll get back to you ASAP or see our selection of used cars at our Burlington dealership. 


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