Can newcomers get a car loan with no Canadian credit?

Yes, newcomers to Canada can absolutely secure a car loan even without an established Canadian credit history. Many major banks, credit unions, and some automotive manufacturer finance companies offer specialized "Newcomer" or "Immigrant" programs designed specifically for this demographic. These programs typically assess creditworthiness using alternative criteria, such as proof of stable foreign income, professional qualifications, educational background, a solid employment letter from a Canadian employer, and often require a significant down payment-typically 20-30% or more-to mitigate the lender's perceived risk. While interest rates might initially be higher compared to someone with a long-standing Canadian credit file, these programs are crucial for establishing a credit profile. In the current 2025 market, despite a generally higher interest rate environment, lenders remain competitive in attracting newcomers due to Canada's consistent immigration targets, recognizing their long-term economic potential. This matters significantly to the consumer because obtaining a car loan not only provides essential transportation for work, family, and integration into Canadian society but also serves as one of the most effective ways to quickly build a positive Canadian credit history, which is vital for future financial endeavors like mortgages or other lines of credit.