Welcome to Canada! You’ll quickly realize that you’re going to need a car to get anywhere in this country. and the most common way to do it is with a loan. This guide will explain everything you need to know about getting a car loan in Brantford as a newcomer to Canada. 

Steps to Buy a Car as a Newcomer to Canada

Step 1: Start a Building Credit History

If you’ve already been building credit score, great job, you can move on to the next step. Unfortunately, any credit score you’ve built in your home country will not transfer to Canada, so you’ll have to start fresh. Set up a bank account and get a credit card as soon as you can and start using it to build your credit history to find a better deal on a car loan as a newcomer to Canada in Brantford.

In Canada, it’s really important to have good credit. It helps you save a lot of money and have access to the best car loans as a newcomer to Canada. If you’d like to learn more about credit score in Canada and how to build it, click here. If you shop with us, we don’t need you to have high credit score to get you approved for an affordable car loan. Click here to apply.

Step 2: Acquire a Valid Canadian Driver’s License

Your second step is to make sure you have a valid Canadian driver’s license. This may or may not be easy depending on where you moved here from. If you already have a drivers license from your previous country, that’s a good start because you’ll skip a lot of steps. 

It depends on your country of origin, but you might be able to simply exchange your license for a Canadian one. Otherwise, you’ll have to sit a written or practical test before being able to exchange. You can find the exact policies for specific countries here.

In Canada, if you don’t have a drivers license; you first need to take a written test to earn your G1 which will allow you to drive on the road but only with an experienced driver in the passenger seat. After 1 year of having a G1, you may take a driving test which will give you your G2. This is where you can drive whenever with whoever with a few restrictions. After another year you May take your G test which is a final Canadian drivers license.

If your country of origin isn’t one of the ones listed that can exchange a license, According to the Ontario website, you may self-declare 1 year of driving experience by showing a valid, original foreign driver’s license. For more than 1 year, you’ll also need an official letter from the foreign government or agency that issued the driver’s license.

Step 3: Find a Car

Now that you can legally drive a car, your options are the same as everyone else when you finance a car loan as a newcomer to Canada; new or used. The car choices might be different to where you’re from, but the core questions of price vs. efficiency remain the same. If you’re looking for great and well priced car options, please click here to see our online inventory!

Step 4: Car Insurance

In the Province of Ontario you cannot legally drive your car unless it has an insurance policy. So before you take your car on the road you’ll need to make sure it’s insured. There are countless options in Canada when it comes to car insurance so it’s best not to go opt for the first choice you see. Shop around because there will likely be much better deals around.

Step 5: Register the Vehicle

Once you have insurance for your new car, it’s time to get it registered. If you buy your car from a dealership, they handle all of that for you, but if you decide to buy from a private seller you’ll need to do it yourself.

Head on over to your local Service Ontario with 3 documents prepared: your driver’s license, proof of your car insurance policy, and proof of car ownership (side note; these are also the 3 documents you’ll need if ever pulled over by the police). While at Service Ontario you’ll pay a small service fee and register the vehicle.

That’s it! you’re ready to hit the road.