Is it possible to newcomers get a car loan with no Canadian credit?

Yes, it is absolutely possible for newcomers to secure a car loan in Canada without an established Canadian credit history, though it typically requires a more strategic approach. While Canadian credit bureaus like Equifax and TransUnion do not directly import foreign credit scores, many financial institutions, including major banks and credit unions, along with dealership finance departments, offer specialized newcomer programs. These programs often mitigate the perceived risk by requiring robust proof of stable income (which can be foreign-sourced), a larger down payment (often 20% or more), and sometimes a Canadian co-signer with a strong credit profile. In the current 2025 market, lenders are operating with heightened caution, meaning newcomers should anticipate potentially higher interest rates and less flexible terms compared to established residents, reflecting the absence of a verifiable Canadian credit footprint. This matters significantly because securing initial financing is not only crucial for transportation but also serves as a foundational step in building a positive Canadian credit history, which is essential for future financial endeavors. Therefore, meticulous preparation of financial documentation, including proof of employment, immigration status, and any available foreign credit reports, is paramount, and diligently comparing offers from various lenders is highly recommended.