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First car/loan in Canada

barch88

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Dec 19, 2016
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Penticton, BC
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Hey,

I've been in Canada since late March of this year. We need a new vehicle, at least within the next 6 months. Upon moving here I obtained a Scotiabank credit card (visa) and not too long ago I applied for 2 lines of service with Telus cell phones and was approved for high-end smartphones with no deposit required. I pay my bills on time and have a good credit score (mid/high 700's) - as well as a good paying, full-time job.

I was wondering if I should wait until March/April to apply for a car loan that way my Canadian credit history will be 1 year old at that point, or should I be okay to apply sooner...or should I wait longer? What are the chances of approval? Has anyone had experience in purchasing a car in Canada after landing and establishing credit, how long did you wait, what was the purchase or lease amount? We're looking at a new truck so anywhere from 30-40k.

Thanks
 
 

sharpeyes911

Star Member
Sep 16, 2012
57
0
Hi, I purchased a car after one year, I have a positive credit score. Why not try to apply for a car loan just to see if they will approve you for a new car.
 

Didona84

Star Member
Nov 3, 2015
96
16
My husband has an account with Scotia and they have a line of car loans for new immigrants without credit history. You need a downpayment of 25% as far as I can remember and the amount goes up to 75000 cad. If you make regular payments there should be no problem with credit score. You can only improve it faster.
 

APPNOV2014NY

Champion Member
Nov 21, 2014
2,973
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My husband has an account with Scotia and they have a line of car loans for new immigrants without credit history. You need a downpayment of 25% as far as I can remember and the amount goes up to 75000 cad. If you make regular payments there should be no problem with credit score. You can only improve it faster.
How much interest is Scotia charging?
 

NetMecca

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Dec 12, 2013
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Halifax, Nova Scotia
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My advice is to go to a dealership and apply. More often than not, unless you have and obviously bad credit score, if you can prove employment more often than not you will get approval. You may have to pay a slightly higher interest rate if your credit history is new, but certainly is possible. There are also some dealerships that offer guaranteed financing (even pay you if they cannot get you financing). Again high interest rates but totally possible. Dealers want to sell cars, and they will often bend over backwards to help you get finance. Just go and ask.
 
 

sharat_joshi77

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Jun 21, 2011
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Brampton
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I bought my first car 8 months after landing.
I just went to dealer and they did all the processing. As said before, if your credit score is what you say (mid 700's), you wont have any issues.
My personal choice wud be to go to dealer and not with the bank. Dealers want their car sales and will go extra mile to make sure you get your loan approved.
 

Managerchap

Star Member
Jul 17, 2015
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and not too long ago I applied for 2 lines of service with Telus cell phones and was approved for high-end smartphones with no deposit required. I pay my bills on time and have a good credit score (mid/high 700's) - as well as a good paying, full-time job.

I was wondering if I should wait until March/April to apply for a car loan that way my Canadian credit history will be 1 year old at that point, or should I be okay to apply sooner...or should I wait longer? What are the chances of approval? Has anyone had experience in purchasing a car in Canada after landing and establishing credit, how long did you wait, what was the purchase or lease amount? We're looking at a new truck so anywhere from 30-40k.
Just walk into any dealer you would get approved. They might just give you a rate a bit higher but you would definitely get approved
 

manik1105

Full Member
Dec 27, 2018
23
22
Hi,
So I went to a dealer today looking to lease a new car. The finance manager said that because I don’t have a credit history and that I have a PR (I moved to Canada about 1.5 months ago) I have to pay about 20% down payment. I went to another dealer and he mentioned something similar (up to 25% down). Is this standard across all finance companies and dealerships? I didn’t know about this and a 20-25% down for a lease is just massive!
Thanks.
 
 

sistemc

Hero Member
Feb 2, 2014
514
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Different people, different opinions. I would never get a loan or a lease to spend it on a consumer goods. Especially on the good that loses 20% of its value immediately at purchase.

As a newcomer to the country I got myself an used car. And then years later, when I was able to afford, a new one, again without a lease or a loan.

For me a car is a pile of metal, tubes, wires and plastic, not a status symbol.

I would get a lease or a loan only to establish or expand a business. That makes sense.
 

canuck78

VIP Member
Jun 18, 2017
47,010
11,159
Financing is a reality for most people. Would avoid leases if possible. Would also consider used although depending on incentives being given there is sometimes not a huge difference. If possible wouls wait until at least 90 days after starting your job. The longer you wait the better the interest rate and the lower the downpayment amount.