Every year, Canada attracts thousands of temporary residents. Some are international students, while others are workers on temporary visas. In most cases, these temporary residents need cars to make their Canadian experience more enjoyable and convenient. But how easy is it for a temporary resident to get a car loan in Canada? In this post, we will examine the possibilities and challenges temporary residents face in securing car financing in the country.
Can Temporary Residents Secure Car Loans in Canada?
The simple answer to this question is “yes.” However, it is important to note that they face several challenges. For instance, most lenders rely on credit history to determine the suitability of a borrower. Unfortunately, people who are new to Canada lack a credit history, meaning it may be more difficult for them to secure car financing, especially from traditional lenders. Besides, even in cases where temporary residents qualify for a car loan, the interest rate and down payment requirement may be relatively higher since some lenders consider them risky borrowers.
Car Financing Options for Temporary Residents
While it may not be easy for temporary residents to acquire a car loan in Canada, it is not impossible. Here are some of the options temporary residents can explore to this end.
Establishing Canadian Credit History
If you are not in a hurry to get your car loan, you can consider building a good credit history gradually. For instance, you can get a credit card and ensure you are paying your bills on time. Responsible financial behaviour will go a long way in improving your eligibility in the future.
Consider International Banks
Some international banks work with Canadian financial institutions to help temporary residents secure car financing more conveniently. Therefore, if you have an account with an international bank operating in Canada, you should inquire about their auto loan options for temporary residents.
Consider Specialized Lenders
Some car dealerships and financial institutions have recognized the unique challenges that temporary residents face in acquiring car loans in Canada and have created tailor-made solutions to fill this gap. They offer financial options with more flexibility in their eligibility criteria. For instance, FFUN Financial offers an arrangement that makes it incredibly easy for temporary residents to get car loans.
For example, to qualify for an FFUN Financial car loan, you do not need a favourable Canadian credit history or credit score. The documents you will be required to provide to qualify for auto financing include your work permit or study permit, proof of employment, proof of income, proof of physical address, and driver’s license. If you are eligible, your car loan approval will be processed expeditiously to ensure you acquire your car within the shortest time possible.
The Bottom Line
As you can see, if you are a temporary resident trying to acquire an auto loan in Canada, FFUN Financial is an excellent place to go. FFUN Financial offers car financial solutions that make it incredibly easy for people new to Canada to buy cars and move more conveniently.
