Getting a car is considered a basic necessity for many Canadians.
Canada is one of the largest countries in the world, featuring endless roads and highways connecting each beautiful city to the next. Having a car is also essential in surviving the brutal Canadian winters, as the snow and ice can make walking or public transport a difficult prospect for many.
Yet, cars are still relatively expensive, especially for newly arrived Canadians who have spent their savings in coming to their new home. Car loans in Oakville are an ideal way to get into a new ride when you arrive in the Great White North, but securing one without a credit history can be tricky.
So how can newcomers to Canada get a car loan?
There are actually several routes by which new immigrants can secure a new set of wheels. Oakville Bad Credit Car Loans has broken down everything new Canadians need to know about getting into a car. Read on to find out more!
Getting an Auto Loan as an Immigrant
Securing a car loan in Canada as a new arrival doesn’t have to be a Herculean task.
Most forms of credit application will require a credit history. New Canadians likely won’t have an established credit history, as credit scores do not move across different countries. This means when you arrive in Canada, you will start with a clean slate, which can be a good thing or a bad thing, depending on your previous credit history. There are several things new immigrants can do to kickstart their credit histories in Canada. These include:
- Get a Credit Card: Many banks have ‘Welcome to Canada’ product ranges that lower the minimum requirements for new immigrants to secure credit cards. You can also apply for a secured credit card. Having any form of credit open with a lender will begin to build your credit score and set you up for success in the future.
- Open utility and cell phone accounts: Utilities and cell phone accounts tend to have very minimal credit score requirements to get started, as they are considered essential services. By having these accounts in your name, you can help build your credit history.
- Pay all Bills as and when due: Also ensure you pay all your bills regularly. This way, you would gradually build a good credit history for yourself. In due time, you would have a good credit score, well enough for you to be granted an Oakville car loan.
As you build your new credit score in Canada, you will begin to become eligible for more and more financial products, at better rates and terms. If you are unable to wait until then, there are still options for new Canadians to get on the road fast. Oakville Bad Credit Car Loans specialises in getting no credit history applications approved with the lowest possible interest rates. We negotiate with our extensive lender network to secure your loan, and once you have chosen your new vehicle, we will even deliver it anywhere in Ontario, completely for free.
Usually, there are limitations to the amount an immigrant can loan for a car loan. Most lenders actually make it mandatory for an immigrant filing for a car loan to pay a down payment.
A down payment is the upfront payment of a certain percentage of the total amount payable for a particular item. Usually, having a down payment helps to fast track your loan application as an immigrant. It naturally makes you creditworthy as it helps the lender to build a certain level of trust in you. It also helps in the build-up of your credit score as indicated earlier. Asides this, upon the approval of the auto loan, it also helps to reduce the burden of repayment of the loan. You would also notice that having a down payment also helps to significantly reduce the interest rate over the total amount payable. You would not want to start your life in a new environment with an excess payment on a loan.
While paying a down payment can be a minor inconvenience for someone who has lived in Canada their whole lives and has an established financial situation, this can make getting a car loan unobtainable for new arrivals who need every dollar they have. Fortunately, there are many lenders that offer zero down payment options for new Canadians who need to get on the road. At Oakville Bad Credit Car Loans, we offer a range of products aimed at helping recent arrivals get on their feet in Canada, including no down payment loans. We always make securing the lowest interest rate our top priority to help recent immigrants make Canada their new home.
You can get your Dream Car!
When you arrive in Canada, it can be daunting to set up your entire life from scratch again. Luckily, getting a car loan doesn’t have to be something to be afraid of. Oakville Bad Credit Car loans is there to help new Canadians every step of the way in getting into the car of their dreams. Our application experts will walk you through every step of the process to ensure you understand and are comfortable with everything. We have over 7,000 new and certified used products to choose from. When you make Canada your new home, you can rest easy knowing Oakville Bad Credit Car Loans has your back.