Leasing a car
 

Can anyone tell me if my lack of credit rating in Canada on my arrival will prevent me from buying a car on a lease basis? Are there any dealerships or brands that are better than others at considering UK ex pats with good uk ratings but new to Canada?

Thanks

Julie

Re: Leasing a car
 

As far as I remember from when I was buying a car, a lack of credit rating would prevent you from leasing - sorry! :(

Re: Leasing a car
 

and if it didn't you would probably end up with a huge interest rate that would make it not worth bothering.

Re: Leasing a car
 

Buying and leasing are two differnt things. In essence if you lease you are basically renting the vehicle for a specified period. When the lease expires you return the vehicle. At thet time you can exercise the option to buy. Either way you a subject to credit checks.

Re: Leasing a car
 

When we arrived in Victoria back in June 2006, we did not have any north american credit rating (they won't take your UK rating into account, good or bad) and we did get to lease a car. The dealership was connected to Ford. What we had to put down though was a security deposit - their finance guy (the whole experience was like something out of the film Fargo!) basically said that he'd managed to cut us a deal to get our security deposit down from $3000 to $1500. So it was possible, now, with the credit crises etc., I'm not sure if leasing companies will have made any changes to their policies. However, I know that car dealerships are desperately trying to get rid of stock. They often advertise stating things like: "good credit, bad credit, it doesn't matter we've got the best deals ever...etc. etc. etc."
So you may find that they will be willing to lease you a car without a credit rating, but do expect to be asked to put down a security deposit.

Re: Leasing a car
 

[QUOTE=Nibbles2005;7215577]Can anyone tell me if my lack of credit rating in Canada on my arrival will prevent me from buying a car on a lease basis? Are there any dealerships or brands that are better than others at considering UK ex pats with good uk ratings but new to Canada?

Hey there, we came here 4 years ago with no credit rating etc so had to purchase everything with cash and it ate away at all the money we came over with from the UK. This included the purchase of 2 vehicles - nothing special (chevvy venture and chevvy astro cargo commerical) and even though we had 20 years no claims in the UK each we were classed as new drivers here so were paid $850 a MONTH for 6 months for insurance!! It has eventually gone down but took a big chunck of our savings.

so good luck vehicle prices are amazing at the moment so you might be better buying something but if you are in downtown TO do you really need transport??

Julia x

Re: Leasing a car
 

Many dealers will do "in-house credit". I got a new Ford Expedition on an in-house lease within 3 weeks of arriving on a work permit which initially only had 10 months to expiry. That was back in 2003 though. I was amazed.

If you are on a work permit your SIN number is distinct from a permanent resident and this can make credit harder though not impossible (as my case demonstrates). It all depends how desperate the dealer is...

Watch out for lease deals. There are at least two types of lease in Canada. In many cases the one they try and push os the one where you, as the lessee, guarantees the final value of the vehicle to the lessor. This can leave you with a big bill if the vehicle depreciates more rapidly than anticipated. This type of leasing is slightly cheaper, however, with the secondhand value of vehicles plunging I personally prefer "net leasing" where you can walk away from the vehicle at the end or exercise the option to purchase value fixed at the onset of the lease.

Be careful as Leasing law varies between provinces. For instance, I believe Ontario is less flexible about early termination than BC.

One other way of obtaining a car is taking over somebody else's lease. For instance www.leasebusters.com . This maybe an attractive option. The original lessee will continue to guarantee that payments are met, and this maybe an option. You can also get a reduced payment / shorter term, some transferors are even willing to give you cash to take over he lease. I have been tempted but I have never tried it.

Hope it helps. This is my understanding and I don't guarantee what I have said is correct.

Re: Leasing a car
 

Great lease buster link thanks

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Even with Leasebusters you will be subject to a credit check. Things have changed in the last year or so. Up to 2008 the North American manufacturers offered very attractive lease deals to almost anyone (some said it was the only way they could sell their vehicles). However, with credit being so difficult to obtain these days they had to drop this. It is one of the reasons why GM and Chrysler are in so much trouble.

In general, credit to buy or lease a vehicle is much harder to get now than it was a year or two ago. It is not impossible, but more difficult and more expensive for a newcomer. Be very wary of dealers who offer credit to anyone, regardless of their credit rating. The only reason they can do this is that their interest rates are so high they can afford for a few people to default.

I would seriously consider buying a wreck that will get you around for six months while you build up a credit rating. You can get one for less than the security deposit you would have to put down on a lease. One of the better aspects of Canadian culture is that vehicles are seen as a necessity, not a status statement. Nobody will give a toss what you drive.

Re: Leasing a car
 

We arrived in Calgary in October 08.
At that time Ford Agreed a 6yr Finance Deal and Toyota agreed a 4 yr lease with downpayment ,we went with toyota. Both on Brand new cars.

With no Canadian Credit we had to pay a decent size down payment but that made the monthly lease payments lower than if we had of had no downpayment.

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Further to the aboe Interest Rate Competitive and when the lease runs out we have a number of options but one is hand the vehicle back and walk away with no lump sum to pay.

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If it has under the specified mileage and is in fit condition.

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dbd is correct. Those who are interested in leasing cars must check the terms carefully, especially wrt the specified mileage. Newcomers to North America frequently underestimate how much driving they will have to do, particularly if they have school-age kids.

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It can still make sense to lease rather than buy, factors suggesting leasing:

- self employment, in which case the tax break may be better on a lease

- newly arrived, uncertain about a long term commitment to a brand

- whimsical purchaser, if you're the sort of person who changes cars every three years anyway you may as well lease.

The reason I say leasing is a brand commitment is that, if you return the car over the allowed mileage and take another lease from the dealership they may forgive the excess, if you switch brands they won't.

Re: Leasing a car
 

I leased on arrival on my work permit...large security deposit and 8% interest rate. Not the best deal, but at least I had my new Jeep. That deal (11 years ago now) was no doubt lubricated by my being employed and willing to leave a couple of grand with them.

Nowadays they may be more circumspect, but on the other hand they are heavily motivated to shift metal too.

Our current car is leased too, the available rate was a lot more competitive now and it made sense to lease for three years and buy at the residual value with cash, than it did to spend that cash now on an older vehicle with unknown history. And if it turns out yet to be a Lemon we can just walk away. Typically I would say buy used and avoid the depreciation hit, but we wanted a Civic and there are no good used deals to be found.

You need to look carefully at the deals though...as a newcomer with no history it will likely not be the most cost effective answer available, but if you have a job, it could put your bum in a new car for a manageable monthly payment... although you will have nothing to show for it at the end of the term.

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I leased on a 2 year WP, no downpayment but restricted to 2 year lease. Now changed the vehicle and on 4 year finace/lease hybrid type thing ( basically sounds like the old Ford Options they had in the UK - finance with balloon payment at the end ).

Re: Leasing a car
 

we leased a hyundai tucson 2-3mths after landing. produced experian reports, bank reference etc, all the stuff you bring with you anyway and got 3 yr lease no problem, though i did leave a hefty dep, roughly 20% as wanted the payments as low as possible till we could afford to buy it outright.

i would recommend it as a good all round family small suv, if you are not bothered about the badge, its cheap to run and insure, has never let us down despite never being plugged in and regularly left overnight outside in -30 and below. its developed a small problem with playing cd's but that will be fixed soon under warranty by the dealer who really has been great. compared to some luxury brands i have owned in the past, really good quality for the money.

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I leased on SOWP in MArch 2008 , a 2 yr lease with mazda, $4K deposit- I think at 3%. After doing the deal on price they then came back on the phone and wanted $4K more security deposit. I said no way and they said OK then and we carried on with the original deal.

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People responding about deals they received 2/3/4/5 years ago arent really helping anyone. Credit markets have completely changed since then, and anyone arriving on TWP will find it extremely hard getting credit.

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I tried to lease when we got here in 2008. First I had to get a Quebec License!

Then I found it was virtually impossible because my SIN started with a 9 (Temporary Resident). Ford said no, VW would do it on some scheme or other that I thought was a rip off. So I bought second hand for cash, which put a dent in my savings....

A few months ago we decided we needed a second car (renting when needed was costing a fortune) so we tried again to lease or purchase. The only deal we got offered was 40% down, plus a 7k deposit and it had to be a vehicle 2 years old or less! That was Dodge Chrysler.... We worked the figures out and thought, no, bull biscuits.

I ended up buying a Volvo "banger" for just over 3k! Beautiful knick, 1998.... but it does have over 350k on the clock! Still, it does its job and, touch wood, hasn't let us down so far.

In short, it's still a nightmare trying to get credit... I have a mortgage but was told only credit card history or other non-secured loans build up a history... not a mortgage.

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what you could do, instead of knocking most people who have commented, is state what your experience is, as at the moment you are not telling us anything we don't already know. people have posted to show it can be done, the information may be out of date, granted, but its offered sincerely i'm sure.

Re: Leasing a car
 

I have done so, on previous threads.
We arrived just before the credit markets went down the swanny, and after MUCH shopping around, got a loan for a new Tucson with nothing down. This was in September, when we were recommended a Hyundai dealership by someone on here. The owners had a personal friend at the bank, and we were able to use the cash rebate as the deposit. I also had to get 3 character references from people I knew in a professional capacity (ie/ no friends/family allowed).

Since then, I've tried to re-finance and/or trade the vehicle in for something more affordable, and despite over 20 credit applications being submitted, I couldnt get anything. Even my existing finance company (Scotia) said no.
We'd recommended the same dealership to another new couple on here, and they've not been able to get anything, despite there being a $6k rebate to show as deposit.

I've just had to move bank accounts from RBC- despite me being here since August, keeping a decent positive balance in my account etc, they wont give me an overdraft.... not even for $500. I managed to get one with TD but only because a work colleague is brothers with a SVP there.

New arrivals need to be forewarned that getting any type of car loan/lease etc will be extremely difficult, even moreso if you're here on TWP only. Realistically you'll need a decent sized deposit.
Finance companies here also work a little different in the UK. One might think that it would be easier to get approved on a lesser amount for an older car. Unfortunately that's not the case.

Re: Leasing a car
 

I went into the Hyundai dealership on Friday, test drove a Sante Fe, and on Saturday signed up for finance with no deposit for the vehicle and picked it up on Monday.

Had no issues - but that is my experience only. Been here 20 months ( 6 months on TWP ).

Re: Leasing a car
 

I think TWP will find it tough now. People on a TWP who are made redundant may have very few options but flight, and this I imagine will be reflected in credit availability.

However we have been here a year and have literally just last week secured and unsecured credit card.

I think those arriving on a TWP may need time to build credit rating. Of course for us our credit rating came from our car payments!

Re: Leasing a car
 

well all i can say, and i accept this is the bleeding obvious, is it depends entirely on your personal circumstances, TWP or no. To keep it up to date, less than 6mths ago, got $7k line of credit for landscaping. paid it off. couple of weeks ago, got $20k loan for investment opportunity that arose. neither took more than an hour to organise, no questions asked, both from my bank. been here 18mths or so on PR, no other credit apart from mortgage, though did get a leons 6mth interest free thing for some furniture and paid it off at the 6mth point, $2k.
This is my point, i think making a bland statement that all new arrivals must take heed that credit is difficult, nay impossible to come by, is inaccurate.

Re: Leasing a car
 

Not to labour the point, but a) you're here on PR and b) arent a new arrival. Your experience isnt particularly relevant for both those reasons.
Yes, personal circumstances will come in to play (eg/ having a large deposit) but otherwise, I stand by the fact that new arrivals, especially those on TWP, are going to have a really hard time. The fact that I'm a new arrival, on TWP, and know others in the same boat having the same problems, makes my comments completely accurate.
If you can find anyone that's arrived within the last 3 months and have had obtained credit easily, I'd be pleased to hear from them.

Re: Leasing a car
 

Accurate for your circumstances is the point.

Yes things have changed, but that doesn't mean that someone arriving here to take up lets say, the directorship of a multinational, or power forward for the Raptors is going to have the same issues.

Both views are valid, and the more info that is presented here, the better. People can then get an idea of the likely reality for themselves. What would be helpful is if people would outline details like when they were leasing, and any other relevant details they want to share.

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i agree we are labouring the point, i'm certain someone will be on soon, on TWP, who has not been here too long, who has obtained credit. If this was not the case they simply could not exist here, or anywhere else.
i am not well paid or rolling in money by any means, but if i can get all this credit, and you cannot get a $500 overdraft, i do not think it comes solely down to TWP. i regularly come across brits, in particular truckers, who seem to be doing fine on TWP, so again, it can't be all doom and gloom.

Re: Leasing a car
 

Thanks it gets so tiring when the only thing people can add is negative. My mother always used to tell me if you can't say something good don't say it at all and some negative people on hear should take that rule and apply it. Thanks you for your support and comment

Re: Leasing a car
 

Yes all those that have struggled to get credit on landing,should shut up and stop ruining your nice thread.

Re: Leasing a car
 

yeah, you're welcome!
:confused:

Re: Leasing a car
 

i've got to say, you are entitled to your opinion, and your experience, is exactly that, your experience. trouble with this forum is that it is very delicately balanced between people treading softly, and elephants. I much prefer the p+ss takes, as per the comment before yours was. or at least i hope it was.

Re: Leasing a car
 

So basically you dont want to hear what you dont want to hear...but thats not doing you or anyone else any favours, its just sticking your head in the sand Im afraid.

Dont shoot the messenger. The purpose here is to share information about life in canada, and for some, thats been their experience in Canada.

But it would be nice too if the messengers could deliver the bad new in a less abrasive way too;) Sadly moderating personalities is way beyond my remit!

Re: Leasing a car
 

Not sure if that refers to me, but if it does, I apologize. Wasnt my intention.
:thumbsup: