# Car leasing/rental/hire



## KirstyMK (Oct 15, 2011)

Hi there,

My partner and I are moving to Toronto in January 2012 and need to have a car.

'Holiday' care hire (eg Hertz) is very expensive - around 1200 CAD per month for a small car with just one driver listed.

We've thought about longer term car leasing, but are unsure of the process and have read somewhere that leasing companies won't accept you if you have no Canadian credit score, which as newcomers we won't have.

We've also thought about buying a second hand car, but again, are unsure of the process in Canada, particularly with car insurance and road tax.

Has anyone else been through this problem? Any advice at all would be most appreciated, thanks!

Kirsty


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## Auld Yin (Mar 10, 2009)

KirstyMK said:


> Hi there,
> 
> My partner and I are moving to Toronto in January 2012 and need to have a car.
> 
> ...


This is an issue most immigrants face. It is difficult to finance the purchase/lease of a vehicle without a Canadian credit record. How much do you/want to spend on a car? There are second hand dealers who claim "nobody refused", but as to how much the financing charges are is another matter.
If you buy a car and finance it the dealership will register it for road tax but you will need to arrange insurance before this takes place. You will be shocked out of your socks by the cost of insurance. By UK standards it will be HUGE. Bring as much evidence of your driving record as you can gather in the vain hope it will help you lessen the cost. Insurers vary across the country. Some Provinces provide insurance whereas in others it's a private matter, which is the case in Ontario.
Good Luck.


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## aussieshorty (Jan 17, 2011)

Hey,
I'm currently facing the exact same problem. I'm moving to Toronto in January on my own and i'm looking to buy a car as well. I have cash and was hoping to buy one with the help of my friends who live there before I arrive. i don't think it's going to be that easy.

And yes, apparently the price of insurance is insanely expensive. My friends who moved there from Australia four years ago, paid 5Grand for the first year.


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## pwdunn (Nov 12, 2011)

It may be possible to reduce your insurance rate if you own a car and have held insurance on it in the UK or whereever. I know that's what the Ontario insurance companies look for when arriving out of province. So your current insurance company provides a letter explaining how long you have had insurance and that your driving record is clean. If it's not a good driving record, it may not help.

And I apologize to newcomers on behalf of Ontarians for how insanely expensive our insurance is; it is this stupid no-fault insurance--at least it is on area where government regulation makes consumers pay more without actually helping the consumer.

Finally, there are car rental agencies which are considerably cheaper than Hertz or Budget, which serve tourists. There is Enterprise, for example. Also there are car clubs, where you can rent a car for a few hours at a time. I can get more information if needed. They typically require a membership fee.


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## G-Mo (Aug 17, 2011)

I don't know your automotive needs, but, I think it's fair to say you can buy a serviceable short term car for under $3000 (certainly less than a few months rental). You need no credit check to buy a car outright.

toronto cars & trucks - all classifieds - craigslist

You are required to carry third party insurance, if you are only carrying a car worth a couple of thousand and have a thousand dollar deductible, it's up to you if you want to get comprehensive for fire/theft/damage. I wouldn't bother. Pick up an early 2000's Corolla for a year, get a credit card, pay it regularly, build credit and then trade in the used car when you ate ready for a new car.


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## johnmathew (Dec 10, 2011)

Nice sharing. Recently I am buy a new car helpful for your comments.


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## EVHB (Feb 11, 2008)

We rented a car for the first month with Mietwagen Preisvergleich | Drive-Canada.de
We had a mid size SUV, but if you look for something small like Chevrolet Aveo, it will cost you 792 euro including all taxes and with all the insurance you need + second driver is for free.
During that one month we were looking for a car to buy. And I don't know if you would like to stay for a long time, but we did (permanent residents), so we also wanted to build up our credit history. I did this by blocking $8,000 on an account at our bank, and they lended me my own monney back. Didn't have to pay a lot of interest on this, and we payed our car cash + with that $8,000 that we 'borrowed' from our bank. After 6 months, I payed back the entire amount to the bank, so no more 'loan' on the car. These kind of things help you will builing your credit score.


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