buying a car

[canpuneet]

You're fortunate buddy... I guess due to your driving experience in US & Canada earlier...

 

[Neel09]

Hi canpuneet,

I am in a similar situation. I am moving permanently from US to Edmonton this 17th Dec with a new job offer. So what kind of driving license class i will get there? I have 12 years of driving history in US. Can we just replace our US drivers license in Canada? or we need to give tests? I need to buy a car as soon as possible after i reach there. But again, our good credit history in US is worthless in Canada so i guess i have to start from scrap. So what do u do to get a loan? Can the job offer letter help in getting a loan from bank? I was thinking to buy a 5 to 6k car with straight cash but its a headache again as Alberta has harsh winters and god knows the car would even start in morning. Thats why considering new cars or like 08/09 honda accord/civic from authorized dealers. In how much time we can get our new license in Canada after we change from US? I guess we cant buy car or insurance till we get our license rite? Could you plz advice.
Thanks in advance and congratulations for your new car!!!

 

[Rajan01]

It may be very important for newcomers to Canada to manage their finances well. Understanding how banking and finance works in Canada will be a big advantage to potential new Canadian permanent residents. Many new Canadian permanent residents have difficulty accessing credit, which is very often needed to buy a car or a home.

Here are a few tips to help make a successful transition to Canada:
• Find a workshop in your home country that is designed to prepare you for life in Canada. Often, the Canadian consulate offers these types of workshops, especially for helping you to find work. You will receive resources and advice to help you start to prepare for the Canadian labour market before you arrive in Canada.
• Take advantage of settlement services. Most major cities in Canada have settlement service agencies available to assist you. Before you leave your home country, consider making an appointment with the settlement services agency in the city where you will live in Canada so that you can visit soon after your arrival. This agency will give you important information about community and government services.
• Choose the right Canadian bank for you, but also make sure to choose the right bank account. Talk with a representative at the bank to discuss what types and what quantity of transactions you expect to make each month so that you can save money on banking service fees.
• Start to build a credit history. When applying for credit in Canada (to have a loan for a car or a mortgage for a house), your credit history is important in determining your eligibility and the rate of interest you will pay. Often, the credit history you have in your home country is not accessible to the banks in Canada. Some banks in Canada offer programs specifically designed to get a new Canadian permanent resident starting without a previous credit history.
• Create a budget and be aware of your spending. It may take a little while for newcomers to find a job in Canada, so sticking to a budget is also important for a successful transition to life in Canada.

 

[Honolulu]

It seems like a lot of members are moving in from US to Canada.
How are you folks transferring your money?

Travelers checks are lousy in that they have service charge and also poor exchange rates.
So you will likely end up losing a lot of money in the transaction.

I called Scotiabank and they said I could open an account and later send my US money via wire transfer.
No service charge except at the bank of origin.Of course exchange rates as will prevail in market which likely means I wont lose on that score....

Or - a more elaborate way would be to take out my money using my US debit card at any ATM machine and deposit into the new Canadian account, a little at a time....

Any advice on these strategies from experienced members?
Thanks.

 

[gjp]

Hi canpuneet,

I am in a similar situation. I am moving permanently from US to Edmonton this 17th Dec with a new job offer. So what kind of driving license class i will get there? I have 12 years of driving history in US. Can we just replace our US drivers license in Canada? or we need to give tests? I need to buy a car as soon as possible after i reach there. But again, our good credit history in US is worthless in Canada so i guess i have to start from scrap. So what do u do to get a loan? Can the job offer letter help in getting a loan from bank? I was thinking to buy a 5 to 6k car with straight cash but its a headache again as Alberta has harsh winters and god knows the car would even start in morning. Thats why considering new cars or like 08/09 honda accord/civic from authorized dealers. In how much time we can get our new license in Canada after we change from US? I guess we cant buy car or insurance till we get our license rite? Could you plz advice.
Thanks in advance and congratulations for your new car!!!

Neel,
You can exchange your US license and get a Alberta license right away. Ensure that you have proof of driving in the US for more than 24 months. If your current license was issued less than 24 months before, your previous expired driving licence or a DL record from your DMV should be enough. You can apply for your license on day 1 if you have a home address and proof of 24 month driving history. You will get a paper license right away and your original DL a little later. (This is how it worked in ON and I think it is the same in AB too). If you do not have a permanent address I would advice that you wait till you find a home so that you do not have to visit them again to get your address changed.
I purchased a Honda within 15 days after I landed in Canada. Since I did not have any Credit History in Canada, they used my SSN to verify my US credit history for the loan. So, it should not be a problem for you too.

 

[gjp]

Or you can deposit a US check payable to yourself at your Canadian bank. Only problem is it takes 20 business days for the US check to clear. But you do not have to pay any service charge at both ends.

It seems like a lot of members are moving in from US to Canada.
How are you folks transferring your money?

Travelers checks are lousy in that they have service charge and also poor exchange rates.
So you will likely end up losing a lot of money in the transaction.

I called Scotiabank and they said I could open an account and later send my US money via wire transfer.
No service charge except at the bank of origin.Of course exchange rates as will prevail in market which likely means I wont lose on that score....

Or - a more elaborate way would be to take out my money using my US debit card at any ATM machine and deposit into the new Canadian account, a little at a time....

Any advice on these strategies from experienced members?
Thanks.

 

[Neel09]

Thanks gjp,

I will order a driving record as soon as possible. I have driving record of 12 years in US but in 3 different states. I guess my current state record will be sufficient rite as it has like more than 6 years? I have already fixed a house for rent so i can give the canadian address too.
So my question is: if i like to buy a car from a private party, can i do it right away? I mean as you said i can swap my US license and get alberta paper license same day, then need to get an insurance ASAP then buy the car and get it registered? I never bought frm third party before so do not know the process clearly. I really wish the banks there use my US SSN number to qualify me.

 

[Neel09]

It seems like a lot of members are moving in from US to Canada.
How are you folks transferring your money?

Travelers checks are lousy in that they have service charge and also poor exchange rates.
So you will likely end up losing a lot of money in the transaction.

I called Scotiabank and they said I could open an account and later send my US money via wire transfer.
No service charge except at the bank of origin.Of course exchange rates as will prevail in market which likely means I wont lose on that score....

Or - a more elaborate way would be to take out my money using my US debit card at any ATM machine and deposit into the new Canadian account, a little at a time....





Any advice on these strategies from experienced members?
Thanks.

Hi, I talked with Bank of America and they said they have some sort of tie ups with Scotia bank. As per them you can use your US debit card to pull money from there without any fees. You can also make a certified check in your name and deposit in Scotia Bank , it will be faster without transaction fees too. But call your bank to be sure as its always hard to beat them. Scotia bank also gives you a credit card. My friend who went there with a job offer in august got same 1000$ limit and within 2 months they increased it to 10k.

 

[gjp]

Neel,
I do not know about buying from third party. For sure, Canadian banks do not consider your US Credit history. So, I am not sure if you can get a loan from them.
Since I bought a car at Honda, and financed it through Honda finance they verified my US credit history and gave me the loan.

For your Canadian insurance, you will need your DL record for the last 3 years and a letter from your US insurance company about the period you were insured with them and also any claims you processed through them.

Thanks gjp,

I will order a driving record as soon as possible. I have driving record of 12 years in US but in 3 different states. I guess my current state record will be sufficient rite as it has like more than 6 years? I have already fixed a house for rent so i can give the canadian address too.
So my question is: if i like to buy a car from a private party, can i do it right away? I mean as you said i can swap my US license and get alberta paper license same day, then need to get an insurance ASAP then buy the car and get it registered? I never bought frm third party before so do not know the process clearly. I really wish the banks there use my US SSN number to qualify me.

 

[Neel09]

Hi gjp,

I got the auto finance approved from Honda Finance today They did check my US credit history too. and their interest rates on loans are low sure. I am going to Canada on 17th dec so i can take the car then. I am sure auto loan will help us build our credit history pretty fast there. Thank you so much for your valuable information.

 

[canpuneet]

Or you can deposit a US check payable to yourself at your Canadian bank. Only problem is it takes 20 business days for the US check to clear. But you do not have to pay any service charge at both ends.

The best option is to transfer your money through Scotiabank or any other bank offering the service to new migrants. The BIG advantage is that you have a credit card ready and waiting for you when you land... the best way to start building your credit history. Plus there are no bank charges for 1 year and also get a locker.

Puneet

 

[RickB]

How can I open a Scotiabank account? Any branches in the UK?

 

[canpuneet]

Rick, you can check this link http://www.scotiabank.com/cda/content/0,1608,CID12955_LIDen,00.html

All the best!

 

[jes_ON]

It seems like a lot of members are moving in from US to Canada.
How are you folks transferring your money?

Travelers checks are lousy in that they have service charge and also poor exchange rates.
So you will likely end up losing a lot of money in the transaction.

I called Scotiabank and they said I could open an account and later send my US money via wire transfer.
No service charge except at the bank of origin.Of course exchange rates as will prevail in market which likely means I wont lose on that score....

Or - a more elaborate way would be to take out my money using my US debit card at any ATM machine and deposit into the new Canadian account, a little at a time....

Any advice on these strategies from experienced members?
Thanks.

There will be a daily limit on the amount of cash you can withdraw by debit card, so if you want to transfer a lot, that means a lot of trips to the bank. But it's not a bad option if you just want to transfer ~400-500 dollars immediately (esp. with the BOA/Scotia ATM agreement) ... Checks take forever to clear, and wire transfers are horribly expensive (in my book) - they are fast, tho, so if it is a LOT of money... then a $40 transaction fee would be worth it.

If you expect to be transferring money on a regular basis (either direction), I have been using xetrade for over 2 years... best exchange rates, no transaction fees... takes a week or less to process the transaction. It does take some upfront paperwork to apply for the account. There are other money transfer services too, but some are limited to large sums (e.g. 2K minimum). Some people also use Paypal - technically, you are not supposed to transfer money to yourself with Paypal, so having someone else to either send or receive the money is good. Exchange rates are not as good as xetrade, tho, so I would only use Paypal for smaller amounts.

 

[RickB]

Thanks canpuneet... guess it cannot be done from London...