Financing a car on TWP
 

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!!:unsure:

Debs

Re: Financing a car on TWP
 

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.

Re: Financing a car on TWP
 

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.

Re: Financing a car on TWP
 

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).

Re: Financing a car on TWP
 

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:confused:

Re: Financing a car on TWP
 

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.

Re: Financing a car on TWP
 

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.

Re: Financing a car on TWP
 

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.

Re: Financing a car on TWP
 

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

Re: Financing a car on TWP
 

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.

Re: Financing a car on TWP
 

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.

Re: Financing a car on TWP
 

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.

Re: Financing a car on TWP
 

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

Re: Financing a car on TWP
 

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

Re: Financing a car on TWP
 

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.

Re: Financing a car on TWP
 

well we dont own our house we r just renting. income would be based on my OH's $55k arggghhhh! lolololol

Re: Financing a car on TWP
 

You usually need a decent deposit for leasing, so it depends on your personal situation, but it might be an option. You still have to go through the credit check process though.

Re: Financing a car on TWP
 

I was renting and on 50k, but that was in 1998. If you arent too ambitious and have some cash as downpayment and or security deposit its got to be worth asking at least. TWP in isolation is not enough to kill the prospect.

My payment on the Jeep back then was $420 a month...way more than I pay now for my civic. And what I paid for insurance then doesnt bare thinking about! Dont forget, you get to pay tax on those lovely low lease rates they advertise, plus a whole bunch of other expenses and taxes before you pick up your new vehicle.

Re: Financing a car on TWP
 

I've just had to change bank accounts from RBC.
Have been here since end of August, have a decent income, decent balance, but they just wont give me an overdraft. We asked for $1000 and they said no. I asked for $500, and they still said no. $500 isnt a lot by anyones standards, but they just wouldnt do it.

We walked in to TD Canada and they approved it right off the bat.

The lack of access to credit was a big eye opener for us when we arrived. We had a good rating in the UK and credit was easy to come by whenever we needed it, so we kinda took it for granted. I think new arrivals will really be suprised at just how difficult it can be here.

Re: Financing a car on TWP
 

we only have the car we have at the mo as any form of deposit n its only worth around $800-$1000

Re: Financing a car on TWP
 

Not if they do their homework here first:) I wish the internet had existed when I first considered coming here, but then perhaps it would have put me off and I would have missed out on the best thing I ever did.

Re: Financing a car on TWP
 

When we arrived, we had no cash to put down.
We found a dealer that was prepared to use the cash rebate offer as the deposit, so that on paper, it looked like we had put some money down.
They had personal friends at a branch of scotiabank, and we were approved that way, but I know others who have tried the same tactic have since failed with the same dealer/bank. Banks are doing everything by the book now. We were fortunate to arrive just before it all kicked off.

Re: Financing a car on TWP
 

Better start saving then. If you are going to need to find $400 a month in the budget for leasing/ payment, plus whatever your insurance goes up by too, then you shouldnt have a hard time saving a couple of grand, and if you do, then maybe they shouldnt be approving you anyway...

Re: Financing a car on TWP
 

I've been here 4 1/2 years now and still cannot get a car loan, I tried last spring and after the 15th or 16th lender gave up.

I don't know how banks loan money, they told me I had insufficient credit, but it was good, just not enough. (4 years now, I even pay in full every month).

Apparently they want me to go get more debt first.

Re: Financing a car on TWP
 

Thats basically how it works. If you never have debt, then they dont have a track record to judge you on. What the are looking for is a solid track record of repayment.

My first debt here was the car lease...ideal as it was secured by the vehicle and security deposit. I think that made it easier then to get financing at furnature stores etc. (no payments for 12 months etc). however, only once I was a PR was a mortgage and Mastercard and all that easy to get. The general principals have been discussed here in the past.

Re: Financing a car on TWP
 

i think we will maybe just wait a couple of months.. i mean we were approved for a mastercard and overdraft and contract fones but i dont wanna go over board on the asking for credit. We can def afford the payments every month but you know whats its like as soon as you move you just want everything straight away! Feels like we have been here longer than just over a month!! These things come with time so we will make do just now til we have made a few regular payments on our card etc first.

Re: Financing a car on TWP
 

I guess it just doesn't pay to pay off credit cards....;)

Re: Financing a car on TWP
 

We moved over to Waterloo in August on TWP, we had arranged our mortgage from the UK following a recce trip in July. I went to a 2nd hand dealer and got a minivan on finance but it took a lot of doing. Eventually we got an agreement with RCB but we needed 50% deposit, could only finance for period of TWP (12 months) and had to take out an extended warranty which means monthly payments of $740!! This does however give us an opportunity to build up our credit rating.

Re: Financing a car on TWP
 

Hi
Just before xmas we were looking for a car, we were approved for a loan from the bank so we hit the dealers.
We decided to buy new as the deal was better. Nothing down and 0%.This was approved within two mins of completing the paperwork and the loan was from bank of Montreal
We have been here 18mn on a twp
Hope this helps
When we were given our sin no we were told not to give it out to anyone, Even the banks are not supposed to ask for it. Never put on the forms for store cards. There is a pamphlet that tell you of the few places that actually require it

Re: Financing a car on TWP
 

thanks for that Bear. Yeah we were told too not to give out our SIN. before we got my OHs SIN we went to one of the dealers about getting a car and he made such a hoo har about not having it. All they were out for was the money kept getting fone calls for weeks after from the salesman even though we told him we were gonna leave it. It wasnt that we werent interested just that his finance manager made such a big wishy wash deal!