delsol79

Hey - we are landing in Calgary mid-April and starting to stress about everything. One of the first things I want to source (after a house to rent) is a car.

Aware we will face issues obtaining credit but I am trying to understand how likely you are to be offered some form of line of credit for a car purchase and how realistic I am being hoping to get one within the first two weeks of landing.

To my benefit I will have an HSBC Advance account set up with supposedly my HSBC credit rating transferred over and I will have a permanent job offer.

I would be looking for credit in the region of $10-$20,000 for a car purchase. Is this going to be easy/impossible/somewhere in between or does it depend on too many variables like salary etc?

Cheers.

jericho

A line of credit is unlikely IMO. A loan may be possible if you can put down a decent deposit, but I doubt you'll be able to get a loan with nothing down the moment you land (cue loads of people telling you they were able to do it, but that was a different time with different financial circumstances).

delsol79

I might have my terminology wrong, I do just mean a loan from a bank. For example I am looking at cars at $20k and would put down between 5-10k on it cash.

jericho

With PR, you should be OK. It might take some shopping around, but shouldnt be too much trouble.

ann m

We put $10k on a new car when we arrived and got financing at 0.9% (2007 - don't know what offers are around at the moment). We had to show our job offer letter to the finance company, but other than that, it was pretty straightforward.

lmartin999

If you have HSBC Advance it should come with a line of credit I think. I suspect this account will make negotiating one easier. I doubt you will see anything near 0.9% as a rate though.

dbd33

On Saturday the TD told me their rates for car loans were 7% fixed or 5% variable.

JonboyE

Given the deposit you have I agree with jericho. Shop around for an offer, then for the best rate. You might end up with the best rate from the manufacturer.

delsol79

Great info, cheers.

Would I be likely to have any greater success obtaining a loan from a bank vs car finance from a 2nd hand car yard or main dealer franchise?

JonboyE

I don't know which is more likely. You will have to ask around. Scotiabank have a program for newcomers http://www.scotiabank.com/cda/conten..._LIDen,00.html. No doubt others have similar offerings.

Apart from their standard products bank managers have some discretion. They may be able to offer you something on their own cognizance. So, it may be back to visiting a few different banks for a chat. Building personal relationships is often the way to get things done.

From car dealers you will get the best rate buying a new vehicle from a main dealer. The factory may offer an incentive rate to keep volume up.

Used car lots in Canada are no different than the UK. If they say, "everyone gets credit," you will pay dearly for it.

JB0591

As with any bank just opening an account does not mean you will get all the features they advertise, it will still be based on your circumstances.

For example if you have a HSBC account you can apply for a credit card, if you dont have a job it will be a "secured credit card" until such time you have a job and can reapply to get your security deposit returned.

Siouxie

My son opened an RBC account (with $10), and received a unsecured visa with a $1000 limit with no job and having landed 3 weeks earlier... 3 months ago.

Actually, whilst Scotiabank do a newcomers account http://www.scotiabank.com/cda/conten..._LIDen,00.html - complete with car loan

StartRight Auto Loan Program
When new immigrants and foreign workers first arrive in Canada, buying a car is a major purchase for many. Scotiabank is proud to introduce the StartRight Auto Loan Program, which provides auto financing solutions to newcomers.

The Program is currently available through selected new vehicle franchise dealerships in Canada.
(chrysler, hyundai, jaguar, kia, mazda, mitsubishi and volvo)

Promotional Offers
Get a free $5 calling card and a 13 week subscription to National Post with the Scotiabank StartRight Program.
Promotional offers available to customers who qualify for the Scotiabank StartRight program and who open the Powerchequing® account, get a No-Fee Moneyback VISA card or safety deposit box; or who qualify for the Welcome to Canada mortgage program and obtain mortgage financing with Scotiabank. These offers expire on December 31, 2011, subject to availability.


- so do many other banks.

You might find this link useful: http://www.newyouth.ca/what-kind-ser...ffer-newcomers

RBC: http://www.rbc.com/canada/banking-packages/index.html (also have car loans)

(RBC have a nifty car loan calculator https://www.rbcroyalbank.com/RBC:TME...ns/rezvalgo.pl)

CIBC: http://www.cibc.com/ca/newcomers/index.html

HSBC: http://www.hsbc.ca/1/2/en/personal/h.../new-to-canada (offer of up to $5000 line of credit)

BMO also have one with a car loan: http://www.bmo.com/home/personal/ban...anada?nav=left

dbd33

Rather misnamed, that promotion.

delsol79

Very useful indeed and really appreciate that.

I am very tempted by new car prices however whilst I have a confirmed job offer I don't know how it is going to work out. Therefore the option of getting finance from a dealer (even though I have seen 0%!) worries me in case I need to pull out during the 3 year period - penalties are huge.

At least with a straight bank loan you can sell the car and pay it back anytime.

Pushing me more towards a new car is the 2nd prices which I know everyone says are ridiculous. I am looking at a Honda Civic Sedan Si. The MSRP is $27k or for about $19-21k I can buy a 2008. Only 6-7k depreciation in 3 years - WOW.

JB0591

dont forget to add on 13% tax even if buying a 2nd hand car. I brought privately and paid the tax when we registered the car.

That is Ontario for you......not sure about Alberta

<added this as your location says Manc-Toronto and did not read original post saying its now Calgary>