To work in Canada or access government programs and benefits, you need a 9-digit number known as a Social Insurance Number (SIN). Your SIN is private, and it is illegal for anyone else to use it. Now, SIN is required for purchases over $10,000 since they need to be filed at a local revenue agency for taxes. Obtaining SIN also provides you government benefits and in getting a work permit.

As an international student, you can apply for a SIN using any of the following documents:

• Get a student permit issued by the (Citizenship and Immigration Canada) CIC indicating that you will accept work in Canada
• Get a visitor permit issued by the CIC showing that you have been authorized to work in Canada
• You will also need a diplomatic ID card and a note of permission for employment

Now, all you’ve got to do is visit the closest Service Canada location near you. You’ll receive a SIN by providing the requisite documents.

 Remember that international students may only secure a temporary SIN if they aren’t a permanent resident just yet. Once approved, your SIN should be given to you on the same day. 

2. Getting a Driving Licence and Auto Insurance :

A valid driving licence and auto insurance are mandatory for purchasing a car in Canada. International students may need to go through the regular licence application process or check if their country has a reciprocal agreement for licence issuance. Here are crucial steps to follow:

• If you have a driving licence from your native country, bring it to your closest Service Canada location to check if you can get a driving permit without going through the regular process.
• If your country does not qualify for the reciprocal agreement, you’ll have to undergo the regular licence application process.
• Take a vision and a written knowledge test, and get 12 months of driving experience before taking the road test.

You should also remember that securing auto insurance is mandatory for auto loans and purchases.

3. Proof of Employment:

Part-time working students have to provide proof of employment and income from any companies that they work for. They should also provide more details about their bank account to prove that they are earning a regular salary during the loan assessment. Of course, it’ll also help to start a savings account with a few thousand dollars or start collecting any documents that indicate you’ve been paying your bills.

To secure a work permit, you’ll need permission from the school to work on campus, off-campus, or as an intern. Follow the guidelines from the Canadian Embassy, and you should have no problem getting the documents you need to start working and earning income. Once you start making money, you can gradually build your credit score in preparation for a student’s car loan.

Also Read: Steps to Increase Credit

4. Applying for a Student Car Loan :

The loan terms may vary depending on the vehicle price and the amount you need to loan. Usually, international student loans can range anywhere between $15,000 to a maximum of $20,000, which means used cars are the ideal way to get the best value for your money.

Now, you’re almost ready to own a car. What you need now is to apply for a car loan but if you do not have a credit history yet then?

Also Read:How To Get A Car Loan With Bad Credit Or No Credit!

What do you do?

Check your Student permit

You must be able to guarantee that you’ll be able to pay the loan before your permit expires.

Have an income

If you earn a salary, then your chances of getting a car loan at a low-interest rate increases. Students who work and earn money are more trusted to pay back by lenders.

Make a down payment

Lenders like to be guaranteed their money will be paid fully during the loan term. Making a down payment can speed up the process of securing an auto loan.

Once you have these three things, you are eligible to purchase a car.

Informative Read: Minimum car loan requirements (With Any Credit Score)

International students may face challenges in obtaining a car loan due to factors such as lack of credit history and provable income. However, some dealerships, like AlbertaAutoLoan, offer financing options tailored to international students. To improve eligibility for a loan, students can consider factors such as their study permit’s expiry date, having a reliable income source, and making a sizable down payment.

A tip: You are able, to finance a car if you have a good credit record for at least a year, and you should also have a steady income from a job (part-time job as you are a student). Some car dealers, having their ties and influence with the banks, can arrange finance very easily even if you have a low income and credit score. In some occasions, you have to get a co-signer to meet the criteria for financing. The financial institutions don’t directly deal with the customers who are buying cars, but the car dealership does. Sometimes the interest rate might be higher unless you go for a brand-new car or low credit score (650 or less, 700 is better). Always go to the car dealers (like AlbertaAutoLoan), get a test drive done and ask for loan approval rather than visiting the bank directly.