Car Loans for New Canadian Permanent Residents and Citizens

Car Loans for New Canadian Permanent Residents and Citizens

Posted on November 16, 2021

If you received your permanent residency or citizenship in Canada, then you will most likely want to buy a car. The public transportation system in Canada has come a long way but there is a need for a paradigm shift in the way service is offered before we can collectively give up our cars.

First welcome.  Second, our St. Catharines auto loans team is here to help new Canadian citizens get on the road, literally!

So how do St. Catharines car loans work

When you receive your documentation from the Government of Canada, one of the things they would have issued is a social insurance number (SIN) this is a 9 digit number that is unique to you and is used for tax collection.

This number is also used to create a credit profile that the major credit reporting agencies use to keep track of your credit handling abilities.

The credit reporting agencies will assign a number from 300-900 and depending on a host of variables, your score will fall somewhere between those two numbers.

To have a high credit score, you will need to pay all of your debts on time, even if it is something that may seem trivial like a cellphone bill.

You do not need to have been in Canada for a long time, some lenders can help provide auto loans to new Canadians.

How to find lenders that provide auto loans to new Canadians

A simple and easy way to access St. Catharines loans is to work with a local dealership that has been in operation for many years. The longer the dealership has been in business, the more established they will be but always look over the reviews left by other customers.

When you have identified the lenders that do provide auto loans to new Canadians, you will have to fill out an application. This is where you put in your details including your SIN.

After the dealership has all of the information jotted down, they will go through their network of lenders and identify those that are best suited for our specific needs.

You will have two options when financing a new car in Canada, you can either lease it or buy it outright.

When you lease the car, you will keep it for a predetermined amount of time and at the end of the lease, you will return the car or have the option to buy it.

If you select the car purchase option, then you will own the car at the end of the term or if you pay the car off sooner. An advantage of leasing a car is you will be able to exchange it for a new car every few years.

The dealership is going to get you a very good deal on a new car, you will need to also budget for insurance and maintaining the car. These are costs that most people overlook but you need to factor them into your budget.

By having a good credit score and working with a reputable local car dealership, you will have no issues getting a new car and making the most of your move to Canada.

We will use all our skill and experience to deliver the lowest possible St. Catharines auto loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.