subject: How Do I Get Approved And Buy A Car If I Am An International Student [print this page] So, youve come to Canada for a better opportunity and to further your education. You are excited as you have arrived in an exciting country, a new school, making new friends but you have a big problem. Back home you had access to a vehicle or even your own but now it is not the case. The question now is, how do I buy a car in Canada if I am a student?
Usually to get approved for a car loan, you have to have good credit. Problem is you have just arrived and havent had a chance to establish any credit. Also, you are a student and your income comes from family back home to keep you a float or you have picked up a part-time job. What banks are looking for is a DTS (Debt to Service) ratio. This is a gauge to determine how much you can afford. Typically, someones DTS should be about 30%. In simpler terms the 30% means that if you earn a net total of $1000 per month then your affordable payment should be $300 per month. If its $2000 per month then it is $600 per month. Although this seems to be promising for you because this fits in your budget, the Banks also take into consideration that students have a higher interest rate. Bottom line is that your case is seen as risky due to the situation mentioned.
With all this being said, it is still very possible for you to get a loan and into the car you need. Things that will help you get approved are if you have some money to put down. Lenders see money down as a good sign and give you a better chance for approval. If you have a part-time job then see if your employer will write you a letter in your favour and also indicating the hours you work. Additionally, any pay stubs that you have are beneficial for you to bring to a lender. Your best option is to deal with financiers that deal in bad or no credit, such as yourselves. There are a lot of these lenders that specialize in customers with bad or no credit and can actually help you establish credit or improve your credit score through your car loan. Most of these lenders will specialize in Used Cars and are a great option for International students who really just need to catch a break and get someone to finance them. End of the day, there are good options out there but remember to bring as much to the table as possible to help your case and get you into that car you so deserve.
