Car-Buying Checklist for Newcomers**
One of the first big purchases you’re likely to make after settling in Canada is a car.
Here are some things you can do (and ways we can help) to make your car-buying experience a positive one:
Ensure you have a valid driver’s license
As a newcomer looking to drive in Canada, you want to ensure you have a valid driver’s license so you can legally drive here. In some provinces it is strictly required to have a Canadian license – in others, you may be able to drive with your International Driving Permit. Check with the government of your province or territory for details.(opens in new window)
Research vehicles online
Visit the websites for car dealerships and other car-buying resources to compare the features, pricing and consumer reviews of vehicles so that you can narrow down your top choices before you start shopping.
A vehicle history report can also be purchased to assist with your decision. Such reports can be highly beneficial as they provide information about accident history and safety recalls for used vehicles.
Decide whether you want a car loan or a lease
In Canada, people typically borrow money to buy a vehicle. Two of the most common financing options are taking out a loan or signing a lease.
- With a loan, you can borrow up to 100% of a vehicle’s purchase price. When the loan is paid off, you own the car.
- With a lease, it may be a good option if you want to get a new car every two to three years. Once the lease is complete, the car is returned to the dealership.
Think about how you’ll use your vehicle and what you can afford. Here are some things to consider to help make the decision easier5
| Car Loan | Lease |
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A loan may be a good option if you plan to drive your car a lot or want to keep it for five years or longer. Here’s how it works: You can apply for an RBC car loan at over 4,500 dealerships.2
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A lease may be a good option if you want to get a new car every two or three years. Here’s how it works: You pay a monthly amount to a leasing company for a specific term, typically one to five years. At the end of the term, you return the car to the dealer or buy it at the price listed in your lease agreement.
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Know what you can afford for a monthly car payment
Before you visit car dealerships, it's good to have a general idea of how much you can afford and what your car payments will be. (Be sure to also factor in the costs of fuel, insurance, parts and maintenance when deciding what you can afford.) Try our quick calculator now to estimate your car loan payments.
- Make as large a down payment as you can to lower your monthly payments.
- Make prepayments whenever possible. Even a small lump-sum payment, or slight increase in your regular payments, can make a big difference in interest savings over the loan term.
Maintenance costs vary depending on the type of vehicle you choose. Keep the following in mind:
- New vehicles are more expensive at first, but typically have lower maintenance costs.
- Used vehicles are cheaper, but depending on the mileage and other considerations, might require you to spend more on maintenance and repairs.
- Hybrid and electric vehicles, while typically more costly upfront, can lead to savings on fuel and emit fewer emissions while operating compared to an internal combustion engine. There may be government incentives available to you if you are looking into a hybrid or electric vehicle. To read more about hybrid and electric vehicles, click here: https://www.rbcroyalbank.com/car-loans/electric-vehicles.html
Get a car insurance quote
To own and operate a car in Canada, you must have car insurance to protect yourself financially against certain risks. Automobile insurance protects you, your vehicle and third parties in the event of a theft or accident. There are different types of plans available and the cost is dependent on the plan you choose, as well as your age, driving record, living location and driving experience. It is advisable to shop around for the best rate!
Test drive different vehicles
Test driving your vehicle is crucial in finding the best value in your vehicle, especially for used vehicles.
Ask for RBC
Once you know the vehicle you want and have negotiated a price, ask your dealer for an RBC car loan. You can apply for our financing at over 4,500 dealerships2 — no Canadian credit history required!3
How to Apply for an RBC Car Loan
Let us help you buy your first car in Canada and get on the road faster!
Ask for RBC financing at over 4,500 dealerships.
- Visit any of our trusted partner dealers
- Test drive a new or used car
- Discover dealer incentives
- Apply for financing onsite
You must apply for the RBC Cash Back Mastercard by January 31, 2026, at an RBC Royal Bank branch, and be approved by us. You will earn an additional $10.00 back for every $100.00 (10% Cash Back Credit) in Net Purchases (including pre-authorized bill payments) charged on your RBC Cash Back Mastercard account within the first 3 months of account opening, up to a maximum total combined spend of $2,000 (“Welcome Bonus”). Thereafter, the standard Cash Back Credit earn rates of up to 2% on Grocery Store Purchases and up to 1% on other Net Purchases (that are not Grocery Store Purchases) apply. The Welcome Bonus is in addition to the standard Cash Back Credit earn rates. Cash Back Credits are not earned on cash advances (including balance transfers, cash-like transactions and bill payments that are not pre-authorized charges that you set up with a merchant), interest charges or fees, and credits for returns and adjustments will reduce or cancel the cash back credits earned by the amounts originally charged. The Welcome Bonus will appear on your next monthly statement after it was earned, and will be credited as set out in disclosure 35 (below). For complete details on the RBC Cash Back Program including standard earn rates and crediting of Cash Back Rewards, please refer to the RBC Cash Back Program Terms and Conditions at www.rbc.com/cashbackterms. Offer applies to new RBC Cash Back Mastercard accounts only.
One offer per eligible account. Existing cardholders of any RBC personal credit card, applying for or transferring to an RBC Cash Back Mastercard card, are not eligible for this offer. This offer may not be combined or used in conjunction with any other offer except as otherwise set out. Royal Bank of Canada reserves the right to modify, cancel or withdraw this offer at any time. This offer may be revoked at any time if we suspect you may be manipulating or abusing it, or engaging in any suspicious or fraudulent activity, as determined by Royal Bank of Canada in its sole discretion.
“Eligible Personal Client” means a client who meets all of the following conditions:
a. Is a newcomer to Canada having arrived in Canada within the last five years of the date an Eligible Personal Banking Account is opened. Must show proof of entry into Canada and provide supporting documents such as landing papers or permanent resident card;
b. Is a resident of Canada and is of the age of majority in the province in which they reside as of the date that an Eligible Personal Banking Account is opened. Residence is determined by the jurisdiction (province or territory) where a person has their primary tax filing obligation based on their regular place of residence; and,
c. Does not have an existing Personal Banking Account with us. For full details, including defined terms, visit https://www.rbc.com/newcomers/_assets-custom/pdf/Terms-and-Conditions.pdf(PDF opens in new window).
Must be enrolled in RBC Online Banking or the RBC Mobile app and have either a Canadian RBC Royal Bank chequing or savings account. Some restrictions may apply. Cannot send funds from a US dollar account, the RBC High Interest e-Savings account, or Foreign Currency Accounts.