debzielou

Hey there,
Just looking for some advise from people that are already here in Canada.

My OH and I moved to BC in December and bought a cheap car to run about it. After all the snow etc its not greatly suitable as well my OH is a stone mason so its not really big enough to keep all his gear in.

So.. Im wondering if anyone has come over on a TWP and managed to get car finance through a dealer?

We tried one dealer in Chilliwack n they said ooh im sure we can help you n then were so wishy washy and going on about how with our situation it would take a lot of work and not really giving us any solid answers as to whether it would be possible.. we ended up just telling them to forget it.

Any suggestions would be greatly appreciated, I dont know how much longer our old banger will hold out..it makes some funny noises!!

Debs

scrubbedexpat091

It could be hard on a TWP since there is less guarantee to the bank you will be here for the entire life of the loan.

I'd talk with a banker at your local bank and see what they say.

jericho

We did it in September, but know of a couple who have really struggled with the same dealer. I tried to refinance mine because I wanted a lower rate and a different vehicle but cannot find ANYONE to do it... even the existing finance company said no. I have a better credit rating now than when we arrived and no one will do it.
I would strongly advise to sit tight and dont shop around. When I tried getting a different vehicle, I only went to Nissan and Hyundai and each tried 10 different banks (sometimes the same bank). That's 20 searches on my credit profile within the space of a couple of days. Now I cant get an overdraft or anything because it looks like I've been trying to get loads of credit.

You may have success if you have a large deposit, but without it, you're really gonna struggle. Good luck. Would be interested to know how you get on.

jericho

Forgot to mention but one option is not to disclose your SIN number. It's the 9 that flags you as being a temporary resident. You dont have to give it to them if you dont want (it might mean they wont deal with you, but that's the chance you take).

debzielou

thanks for the advice.. i just dont know whether to go n try or not as you say it really affects your rating if you keep looking around hmmmmmm decisions decisions

R I C H

Yes, I had no problems getting a low rate lease or other types of finance while on a TWP. That was prior to the current financial situation, but I can't see dealers not wanting to bend over backward to try and shift metal.

iaink

I leased no problem on a work permit, but that was 11 years ago in an entirely different economic period.

I think it can be done as they are dying to shift product, but expect to have a large security deposit and not the best finance rates, drive a hard bargain, and if you get a better deal, be happy about it.

Better bet is to first try and get a loan or line of credit approved with your bank or credit union, then you are pre approved, probably at a better rate, and you know where you stand while negotiating the nuts and bolts with the dealer.

Your credit rating here will not improve until you get some credit and start to pay it back, so in your situation asking a few dealers is not going to do any serious harm, but first try and arrange it with the people with the most insight into your circumstances. And if they are not helpfull, be prepared to take your money and business elsewhere and shop around the other banks, dangling the carrot of your future financial business in front of them.

debzielou

Thanks RICH they do all seem to be desperate to get rid of their cars.. i mean we have been approved for an overdraft and credit card no probs through the bank so dont know whether to leave it a couple of months or what.

R I C H

I've had success with Ford, Mazda (ultimately the same company) and Subaru, if that's of any help.

jericho

Seriously, take it from someone who's just gone through all this within the last couple of weeks, and knows another couple that are in the same boat.
It really doesnt matter how keen the dealers are to get rid of their cars. It's not the dealers that lend the money.
When we went to Nissan for instance, they went to all the banks, and then even Nissan Finance, and they still couldnt do anything. Hyundai was the same. They went to the same bank that we're currently financed with, and they still couldnt get a deal- the vehicle we wanted would have had a higher trade in value, cost us less p/month, and so was a better credit risk, but they wouldnt do anything.

If I was you, I'd wait 'til you've been here 6 months and then give it a try. Your bank will have a decent history with you and it should be easier. The credit markets should hopefully be moving forward again by then too.

R I C H

I went to a Subaru dealer late last year and requested 100% loan finance on a new Forester, with the intention of paying off the entire loan the following month.

The dealer arranged it through BMO and I paid $200 in interest (no admin/arrangement fee) for the convenience of the months borrowing. There are still deals to be done out there.

iaink

I suspect it may be easier for a newcomer on a TWP to lease than to buy as ownership / residence are not such an issue..they still own the vehicle.

However its not as cost effective in most cases as rates are generally higher.

Worth making a few calls anyway before throwing in the towel.

jericho

I agree, but not for someone who's just arrived, only has a TWP and has no credit.

debzielou

well we would be happy to lease to get something. is this more worthwhile do you think for our circumstances?

iaink

However you own property and have credit history and all that other good stuff they like dont you? As a temp resident fresh off the boat I dont think its going to be as easy in the current credit crunch. Also income levels are bound to be a factor in their decision too.