So I've been in Canada for 18+ months and I've got to the point where I need to get a car, but I've only got a credit card a few weeks ago and so have no credit history. I was hoping to finance a vehicle around $8000, but this looks to be impossible due to the ages of a typical car in this price range. They will give me finance on cars though as long as they are fairly new, but this severely limits the selection of cars to horrible low spec sedans (totally incompatible with the outdoors lifestyle Canada professes to love!).

I'm going to use the credit card for all purchases now and pay it off but this will take about 6 months I'm told to build any history. I could buy a $2000ish car outright but the market at this end looks like an utter minefield, even more so than the UK.

So sorry for the rambling, but does anyone have any experience of financing cars with no credit history? FWIW I'm a Canadian citizen via my mother, which was only recently sorted out and why I've only just got a CC.

Thanks!

Have you thought of asking your bank or Scotia bank (they seem a bit easier on this) for an unsecured line of credit and use that to buy the car?

Thanks for replying, that was my first choice, but my bank (TD) seem reluctant to give me one - saying that it was the hardest sort of credit to get. Shall I keep pestering them or are other banks more willing to give me one? TD are fine but I have no issues with changing my account to someone else if they'll be more helpful.

It's annoying because it's not like I want a massive amount and I have no other outgoings other than rent and a phone bill - I'm sure they give credit out to people far less likely to keep up payments!

Ive only been here 2 weeks and am getting to the point that I really need a set of wheels,as the bus to my work does not run on weekends,and stops at 6.30pm during the week,crap when with O/T I finish around 7pm,and work 5 hours on a saturday.
Like you I could buy a $2000 car outright,but like you say mate,it is a minefield,I am looking at cars which are around $7,000-$8,000(dodge caliber).
I have seen car finance companies that say as long you have worked at least a month in Canada,have a valid driving license,and social security number they will say yes,I may go down this route in another 2 weeks if my bank won't give me a loan.

I'm with Scotiabank and they gave me a $500 credit card when I opened the account with them,out of habit I use my debit card for purchases though,I should use the credit card more and get a credit rating going myself.

Yeah that's the sort of money I'm looking at spending. I think I've learnt that when they say 'we guarantee finance' etc, what they mean is they'll finance you on something which may not necessarily be what you want.

I have tried to finance a 2006 mazda6 wagon, but the finance companies won't allow it - the reasoning is that an older vehicle will be more likely to explode/throw up large bills. I think this is stupid, but that's the reasoning. The silly thing is I've been told I can get finance on cars up to $17000, and that was just when I wanted to pay 400 a month. Madness! These cars will almost certainly lose more value in depreciation than the repair costs of a 5 year old vehicle .

Do you have PR? That was what we found very difficult. Nobody would give us credit for a car when on TWP without at least 40% down and then only for the period left on the TWP.
Scotia bank are great if you have PR though and def worth a try as they seem much more flexible/understanding...

Yep, citizenship in fact. I don't think I'll have too much issue in about 6 months or a year when I've been paying into my cc for that long but it's just now with the lack of history.

We had a new financed with the dealer through RBC and an unsecured line of credit with Scotia and a $1000 credit card without pre paying all on a single income and TWP. Pester them, go to a different bank, ask around, talk to a broker. Be careful with the "we finance everyone" dealers as they often charge horrific interest rates.

That's good to hear then. I'll try again with TD and if not I'll ask other banks until one will help.

Try Scotiabank or RBC even try a mazda/dodge/hyundai etc. car dealer and see if you could finance one of the used cars. If you can put $2000 down instead of buying a beater car then they might offer you something as well. For us Scotia was the best but RBC would have offered a line of credit if we had been PRs or citizens. CIBC seems ok, too.

Good luck!

Im with TD they gave me a line of credit of $15k without even asking for one which i found a bit bizarre..i have never used it though..they have just extended my credit card limit to $15k again with out requesting it.

...but you have PR... That seems to be the key... if your SIN starts with a 9 you'll struggle!

You shouldn't disclose your SIN. There's no need.

I got financing as a TWP holder that stretched beyond my permit expiry, for a leased vehicle and for a loan to buy machinery.

So did we. Like I said before on a TWP we got a credit card , an unsecured line of credit and a car loan for a new car.

Wow... Maybe it's Nova Scotia