Obtaining Car Loans in Another Country
The purchase of a car after moving to another country can be an exciting experience, positive, motivating, and full of expectations; You may not have the money to finance that vehicle, but don’t worry, below is an explanation of how to get car loans in Canada. There are three main ways to acquire a loan to buy your first car in another country.
The Bank
If you are going to buy a car through a bank, you are required to complete the loan application directly from the financial institution. The bank will ask you to provide your personal data, including documents that certify your income and expenses. Some of the Canadian banks that offer this type of loan are the Bank of Montreal (BMO), Scotiabank, Toronto-Dominion Bank, and Royal Bank of Canada (RBC).
Good Credit History
In order to obtain a car loan in Canada, you must have very good credit history. The bank will review your payment history, previously requested credits, debts and the loans that you had previously had (perhaps for a property). Based on the data collected, the lender will analyze whether you are a suitable candidate to pay the debt that you are about to acquire.
Car Dealership
Car dealers are very aggressive and so they offer you payment options that “can accommodate” your budget and personal needs. Of course, the loan or payment terms that they give you will be in accordance with the final value of the vehicle. Therefore, if you choose a very expensive car, you may have high payment installments each month and this could lead to you getting into debt over time. You must demonstrate that you will be able to finish paying for your vehicle and so the car dealer will ask for specific documentation to prove income and expense. If the outlook is positive, you may be paying off your car in up to five years, even with a high interest rate.
Bad Credit and High-Interest Rate
In a case that you have bad credit, chances are that no bank, not a lender, not a dealer, will be willing to finance your vehicle. However, if you do find a bank, lender, or dealer that does, you may have to pay a higher interest rate. In some cases, your interest rate will be reduced, if you have a large down payment. Car loans in Canada are usually quick and simple as long as you provide all documentation and meet the main requirements.
