kosh

Have folks who are new immigrants to Canada found it easy to lease or finance a used vehicle from a dealer? The stumbling block is having zero credit. Currently I have a chequing account with my local bank where my payroll will be deposited.

Just trying to find some options. I`m at the AIP stage of my permanent residency application and barring any big medical issues, PR is not too far away. The doctor told me there were no problems with my medicals.

I can legally work at least! However I`m starting to look ahead, and getting a set of wheels is one of many things on my mind. I`m not after a typical north american tank to drive. Just a cheap economical car will suffice. Yes, I know what Maritimes winters are like too, but common sense usually prevails.

Anyway, if someone could offer some advice regarding leasing or financing some wheels, that would be appreciated. Thanks.

Surrey Expat

This might be of some help.
http://strategis.ic.gc.ca/epic/site/.../ca01852e.html

kosh

Thanks for that, I read that page earlier today funny enough.

I think I`m getting more toward the actual application for a lease or finance. Newcomers to Canada generally have little if any credit and most dealers will be running a credit check. Also, they usually only want applicants who have been working X amount of months/years in the same job? Won`t they also want previous addresses? My previous was obviously back in the UK.

I start a full time job tomorrow, my first in Canada. Would I be better off waiting a year and getting some employment history behind me, or would dealers be interested in seeing me right now without a lengthy history?

Atlantic Xpat

We are all Kosh........

If you have a job take either your first couple of payslips or better still a letter from your friendly HR department at work stating what you do and how much you are paid. Show to the dealer and Bob should be your mothers brother & they'll fall over themselves to give you credit.

Oh yes. Beware of the Shadows.

OnlineCB

The week before my OH started work we were shopping around and were told we could lease immediately upon production of a letter confirming income. In the end we purchased a second hand car outright but we could have easily driven away with new wheels.

One thing we didn't expect though was that we couldn't take the car off the lot unless we had local driving licences so we had to do that before we could complete the purchase.

kosh

Another geek? Here`s me thinking I was alone!

Surrey Expat

Whether you lease or finance is a personal decision. For individuals there is no tax benefit to leasing as the payments are not deductible and when the term is up you hand the vehicle back, with no equity. Pretty much like renting the vehicle. If you go over their stipulated mileage you will get dinged for extra km, unless you buy them up front, if you are expecting to do high km. If the mileage & condition is better then average when you hand the car back you may get some money back. You also get an option to purchase your leased vehicle.

If you finance, your payments cover interest and capital, when the term is up, you own the vehicle, with no penalty for condition or mileage, other than resale value. If you go onto the Toyota website www.toyota.ca you can get examples in their calculator for leasing vs financing.

Dealers are quite keen to sell a vehicle so could well do all they can to help you get approved. When the 08 models come out there could be some good deals on 07s. The end of the month can also be a good time if the dealer has a quota to make up. We bought in February and there were some stellar deals on the previous models left on the lot, although the low interest financing was not available on these.

The interest rate can also help you make a decision. In the end it is how much the vehicle costs to own. The lower cost vehicle is not always the cheapest to own, it maintenance costs are higher and with higher depreciation. For example on one site I looked the Dodge Caravan was cheaper to buy but cost more to own than the Toyota Sienna due to higher running costs and depreciation.

There are some good websites that can help with info such as www.edmunds.com it is a US site, but gives an indication. Also take a look at the Lemon Aid Guide, in book stores & libraries.

R I C H

I'm self-employed and have a work permit, so when I arrived in Canada could provide no proof of income, letter from an employer etc. It didn't seem to matter.

I leased a car from Mazda, a truck from Ford (both 0%, no security deposits), and low rate financing from John Deere for machinery. No one asked for anything more than bank details and ID.

kosh

Wow, seems they almost hate to refuse someone! What kind of information do they usually require? I assumed the 9xx sin number would raise some flags for them.

R I C H

Your SIN is normally required as part of the application, but having a 9 prefix hasn't been an issue for me.

The only aspect of credit I've not had any joy with are store cards - was offered one by Sears when purchasing lots of white goods, then got rejected due to a lack of credit history. Go figure

geedee

I tried to lease.... no way, no history and a work permit for only one year.


So, I'm doing it through the company..... but, no QC DL, no deal!

I'm stuck with renting from Budget until I swap my license.... Oct 5. What fantastic service!!!

kosh

I went to see Taylor Ford this afternoon. Nothing serious, just to chat and asked some questions. I wasn`t expecting too much anyways.

It seems it will be more difficult than some have suggested. The big concern is because I`m currently AIP and hence a fixed term work permit. Most lenders will turn their nose up until I have actually landed as a PR. I can`t blame them of course, who would loan to someone who maybe gone in a year!! Of course, I`m not expecting to be gone in a year but the lender doesn`t know that. Even with landed PR status, the guy suggested I may have to fork out a sizable deposit because of my zero credit status, something like five grand maybe.

Might just have to save the pennies and buy an old banger for a while.

mike watson

we got a good used car from a main chrysler dealer with no hassles at all and it may be worth looking on leasebusters.com as people will actually pay you to take over their lease sometimes, anything from 3 mths to 3 yrs and most wer financed thru main dealer finance.

Steve_P

We've been through this before but I'll repeat once again.

http://www.servicecanada.gc.ca/en/si.../provide.shtml

You should not in any way feel obligated to give it to them.

kosh

Mike, are you a landed permanent resident? I ask, because I`m currently AIP which means I am still classed as a temporary resident until I am landed.

Seems some have no issues leasing a vehicle on a work permit/temp status, while others get turned away.