We arrived in Canada with optimism, and we thought we were prepared: we had savings, work experience and a support system. But one visit to a car dealership during our first week in the country showed us how little we really knew. In just a few hours, we got a crash course in buying a car in Canada, and in how the systems around money, credit and everyday life actually work. That experience turned out to be far more formative than we expected.
Buying your first car: What no one tells you
We assumed buying or leasing a car would be fairly straightforward. We were looking for a mid-size SUV, similar to the one we had in Dubai, and leasing seemed like the smarter choice. It didn’t make sense to spend over $40,000 in our first week in a new country.
Then came the credit check.
My wife had a strong credit score, but her Canadian credit file had gone dormant after she declared non-residency. I had just landed, so I had no credit file at all—a common situation for newcomers. Even when we offered to pay outright in cash, the dealership required paperwork from the bank to verify the source of the funds. Understandably, that wasn’t something we had thought to prepare for so soon after arriving.
We considered asking a family member to co-sign the lease, but that wasn’t realistic—it was too much to ask, especially knowing that co-signing could affect their own credit score. Auto insurance costs were another surprise. Despite our long driving history, my wife and I were both considered “new drivers” in the system, which meant higher premiums. And since my wife had the better (though still limited) credit profile, she would have to be the primary policyholder, with me added as a secondary driver.
Eventually, we pivoted—leasing no longer seemed viable. Between the lack of credit history, paperwork requirements and unexpectedly high insurance costs, it just wasn’t a practical option. We rented a car for a few months, then bought a modest used vehicle. It was a tough adjustment at the time. Going from a high-end SUV abroad to a second-hand entry-level car in a new country was humbling. But it was also the right decision. It gave us time to settle in, figure out Canada’s financial system, and start building the credit and paperwork trail we needed.
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7 car-buying tips for newcomers to Canada
Whether you’re buying your first car, exploring auto financing, or buying a used car in Ontario or another Canadian province, here are a few practical lessons we learned along the way:
