10 Essential Tips for Newcomers Buying Their First Car in Ontario

Buying your first car in Canada—especially as a newcomer—requires more than just choosing a model you like. From navigating Ontario’s legal requirements to accessing specialized financing programs for recent immigrants, there are many key details you need to get right to avoid costly mistakes.

This guide is designed specifically for newcomers settling in Ontario, especially in areas served by the Humberview Group, which operates over 20 dealerships across the GTA, Brampton, and Barrie. Here are ten essential, in-depth tips to guide you through the process.

1. Take Advantage of Newcomer Car Buying Programs

Many automakers and financial institutions offer Newcomer or New-to-Canada car buying programs, designed specifically for recent immigrants, international students, and foreign workers.

These programs typically do not require Canadian credit history and may accept:

• A valid work permit or study permit
• Proof of income or employment offer
• A valid international or provincial driver’s licence
• A permanent residence card or proof of landed immigrant status

Brands like Toyota, Hyundai, Nissan, Kia, Volkswagen, and Chevrolet often have structured newcomer finance programs. Dealerships within the Humberview Group can help you access these programs and walk you through the application process.

2. Understand the Licensing and Driver Testing System

In Ontario, most newcomers must go through the Graduated Licensing System (G1, G2, G), unless you're from a country that has a licence exchange agreement with Ontario (e.g., South Korea, France, Germany, and a few others).

Key steps include:

• Getting a G1 licence by passing a written knowledge test
• Advancing to G2 or G based on driving experience or after a road test
• Some experienced foreign drivers can fast-track to the G or get partial credit through licence exchange programs

Without a full G licence, your insurance will be higher, and some finance companies may view you as higher risk. Completing this process early can reduce costs and expand your options.

3. No Canadian Credit History? You Still Have Options

Lenders in Canada usually assess loan applications based on credit history. If you don’t yet have Canadian credit, many banks and dealership lenders still offer non-traditional financing solutions tailored to newcomers.

Options include:

• Loans based on international credit reports from countries like India, the U.S., or the U.K.
• Approvals based on proof of income, down payment, and immigration status
• Co-signers (family, friends, or sponsors) with Canadian credit can help increase approval chances
• Alternative lenders who specialize in first-time and newcomer financing

A vehicle loan is one of the fastest ways to build your credit in Canada — provided payments are made on time. A reputable dealership like those in the Humberview Group will report your payment history to major credit bureaus.

4. Consider Pre-Owned to Maximize Value and Approval Odds

For many newcomers, starting with a reliable pre-owned vehicle is a smart strategy. Pre-owned vehicles:

• Are more affordable than new ones
• Lower the amount you need to borrow, improving loan approval chances
• May have remaining manufacturer warranty or certified pre-owned protection
• Often qualify for special low-interest financing programs even without credit history

Make sure you buy from a licensed dealer, not a private seller, to access these protections and to ensure full inspection and disclosure.

5. Budget for More Than Just the Car

First-time buyers often underestimate total vehicle ownership costs. In Ontario, you’ll need to factor in:

• 13% HST (sales tax)
• Registration and plate fees
• Compulsory auto insurance (often the second-highest cost after loan payments)
• Fuel and maintenance
• Winter tires, which are strongly recommended and sometimes legally required

Dealers like Humberview can bundle some of these costs into your loan and help you compare total ownership costs across different models.

6. Insurance Is Mandatory — and It Can Be Expensive

Auto insurance is legally required in Ontario and costs vary widely based on:

• Where you live (Toronto and Brampton rates are among the highest in Canada)
• Your age and driving experience
• Your vehicle type (insurance for a compact sedan is much cheaper than for a luxury SUV)
• Your licensing level (G2 licence holders usually pay more)

Tips for lowering insurance:

• Choose a lower-risk vehicle (e.g., compact sedans, base models)
• Ask if your foreign driving history can be used to lower rates
• Compare multiple quotes — some brokers specialize in insurance for newcomers

7. Request a Vehicle History Report for Used Vehicles

If you're buying pre-owned, ask for a CARFAX Canada report, which shows:

• Accident history
• Odometer records
• Maintenance records
• Prior use (e.g., personal vs. rental)

All Humberview Group dealers provide these reports on pre-owned vehicles. This ensures you’re not buying a car with hidden damage or a questionable past.

8. Ask About Vehicle Protections and Warranties

As a newcomer, you may not yet be familiar with maintenance and repair costs in Canada. This is where extended warranties and protection packages can be helpful.

Ask about:

• Extended powertrain or comprehensive warranties
• Rust protection, especially useful in Ontario winters
• Gap insurance, which covers the difference if your financed vehicle is written off
• Roadside assistance or winter tire bundles

While optional, these can add peace of mind as you adapt to driving in a new environment.

9. Buy from a Dealer That Understands Your Needs

Not all dealerships are familiar with newcomer situations. A dealer that regularly works with new Canadians can:

• Guide you through documentation (e.g., work permits, proof of address)
• Access programs from banks and manufacturers tailored to newcomers
• Communicate clearly in your preferred language (many dealerships have multilingual staff)
• Offer multiple brands to help you find the best fit for your lifestyle and budget

The Humberview Group, with its wide network and experience serving newcomers in the GTA, Brampton, and Barrie, provides this level of tailored service.

10. Take Your Time and Ask Questions

Don’t rush. Buying your first car is a major step, and it’s okay to:

• Test-drive multiple vehicles
• Ask for side-by-side comparisons
• Take documents home to review
• Consult with family or friends before signing

A trustworthy dealership will never pressure you into a purchase and will welcome your questions — no matter how simple they may seem.

Final Thoughts: You’re Not Alone

Starting a new life in Ontario comes with many adjustments, and buying a vehicle is often one of the most important. The right car can give you independence, access to job opportunities, and the freedom to explore your new home. With the right advice, programs, and support, buying your first car doesn’t need to be intimidating.

At the Humberview Group, we specialize in helping newcomers find the right vehicle with financing that works, insurance guidance, and a transparent, respectful buying experience — no matter your credit or driving history.

Let your first vehicle be a smart step toward building your new life in Canada.