First car/loan in Canada

[barch88]

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]

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]

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]

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]

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]

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]

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]

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.

 

[subodhp]

It is not standard but generally in that ballpark

 

[sistemc]

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]

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.

 

[milon45]

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 Buy here pay here, 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

Given your good credit score, stable job, and existing credit history, you should be in a decent position to apply for a car loan sooner. Waiting until March/April with a one-year credit history might provide slightly better terms, but your current situation appears favorable for an earlier application. Consider obtaining pre-approval from various lenders to compare offers and ensure the best terms. Your chances of approval seem positive. Good luck with your new truck purchase!

 

[steaky]

Given your good credit score, stable job, and existing credit history, you should be in a decent position to apply for a car loan sooner. Waiting until March/April with a one-year credit history might provide slightly better terms, but your current situation appears favorable for an earlier application. Consider obtaining pre-approval from various lenders to compare offers and ensure the best terms. Your chances of approval seem positive. Good luck with your new truck purchase!

It's a six years post. So it's not a brand new truck!

 

[milon45]

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 to buy here pay here $500 down? We're looking at a new truck so anywhere from 30-40k.

Thanks

Given your solid credit history, good job, and on-time payments, you might be okay applying for a car loan now, even with less than a year of Canadian credit history. Lenders generally consider your overall financial health and creditworthiness. If your credit score is strong and you can provide proof of income and stable employment, you should have a good chance of approval. However, waiting until March/April might give you a bit more leverage, as you'll have a longer Canadian credit history. It also could potentially improve your chances for better rates. Experiences vary, but many people with similar profiles have successfully purchased vehicles within 6-12 months of establishing credit in Canada.

 

[Buletruck]

Given your solid credit history, good job, and on-time payments, you might be okay applying for a car loan now, even with less than a year of Canadian credit history. Lenders generally consider your overall financial health and creditworthiness. If your credit score is strong and you can provide proof of income and stable employment, you should have a good chance of approval. However, waiting until March/April might give you a bit more leverage, as you'll have a longer Canadian credit history. It also could potentially improve your chances for better rates. Experiences vary, but many people with similar profiles have successfully purchased vehicles within 6-12 months of establishing credit in Canada.

Given the post is 7 years old, they've probably already moved on to their second new car and bought a bungalow in the suburbs.....