Get Your Business Moving: Financing a Commercial Van in Alberta After a Repossession
Facing a past repossession can feel like a major roadblock, especially when your livelihood depends on a reliable commercial van. Here in Alberta, we understand that a vehicle isn't just a convenience-it's a crucial business tool. This calculator is specifically designed for your situation: financing a commercial van over an 84-month term with a credit score between 300-500 due to a prior repo.
The good news? A commercial vehicle is an income-generating asset, which lenders view more favourably than a personal car. Let's break down the real numbers and strategies to get you approved and back on the road.
How This Calculator Works for Your Specific Scenario
This tool is calibrated for the realities of subprime commercial financing in Alberta:
- Vehicle Price: Enter the sticker price of the commercial van you need.
- Interest Rate: We've pre-set a realistic interest rate range (typically 19.99% - 29.99%) for applicants with a recent repossession. A repossession is one of the most significant negative events on a credit report, and lenders price the risk accordingly.
- Down Payment & Trade-In: Crucial for post-repo approvals. A significant down payment reduces the lender's risk and shows your commitment, dramatically increasing your chances.
- Taxes: The calculation automatically includes Alberta's 5% Goods and Services Tax (GST) and excludes any Provincial Sales Tax (PST), as Alberta has none. This gives you a precise, all-in financing amount.
Example Scenarios: 84-Month Commercial Van Payments in Alberta (Post-Repo)
To manage cash flow, an 84-month term is common for business vehicles. However, it's vital to see the impact of interest and down payments. The table below uses an estimated interest rate of 24.99% to reflect the high-risk nature of this loan type.
| Vehicle Price | Down Payment | Total Financed (incl. 5% GST) | Estimated Monthly Payment (84 Months) |
|---|---|---|---|
| $30,000 | $0 | $31,500 | ~$720/mo |
| $30,000 | $3,000 | $28,500 | ~$651/mo |
| $45,000 | $0 | $47,250 | ~$1,080/mo |
| $45,000 | $5,000 | $42,250 | ~$965/mo |
Your Approval Odds: The Reality of a Repossession on File
Let's be direct: a repossession makes securing a loan challenging, but not impossible. Lenders will scrutinize your application more than others. Your approval odds hinge on three key factors:
- Income Stability: For a commercial van, this means demonstrating consistent business revenue. If you're self-employed, lenders will need to see bank statements, invoices, or contracts. Traditional pay stubs often don't apply, a challenge we know how to handle. For more details, see our guide: Self-Employed? Your Income Verification Just Got Fired.
- Down Payment: After a repo, a zero-down loan is highly unlikely. Lenders need to see you have 'skin in the game'. Aim for at least 10-20% of the vehicle's price as a down payment. This significantly lowers their risk and your monthly payment.
- The Story: Be prepared to explain the circumstances of the previous repossession. Was it due to a temporary job loss, a medical issue, or a business downturn? A clear, honest explanation can make a difference. This new loan is your chance to rebuild. For a deeper dive into financing after major credit events, our Car Loan After Bankruptcy & 400 Credit Score 2026 Guide offers valuable strategies that also apply to repossessions.
Ensuring you have all the right documents is half the battle. To streamline your application, review our checklist on Approval Secrets: Exactly What Paperwork You Need for Alberta Car Financing.
Frequently Asked Questions
Can I get an 84-month loan for a commercial van in Alberta with a 400 credit score after a repo?
Yes, it is possible, but it requires a strong application in other areas. Lenders specializing in subprime credit will focus heavily on your income stability and your down payment. An 84-month term helps by making the payment more affordable, but you must prove you can service the debt and have funds for a down payment to offset the lender's risk.
What interest rate should I realistically expect with a past repossession?
For a credit score in the 300-500 range following a repossession, you should anticipate interest rates at the higher end of the subprime market, typically between 19.99% and 29.99%. The exact rate will depend on the age of the repo, your income, down payment size, and the specific vehicle you're financing.
How does being in Alberta (with 0% PST) affect my total loan amount?
Alberta's lack of a Provincial Sales Tax (PST) is a significant advantage. You only pay the 5% federal GST on the vehicle's purchase price. On a $40,000 van, this saves you thousands of dollars in taxes compared to provinces with PST, reducing your total loan amount and making your monthly payments lower.
Is a down payment mandatory for a commercial van if I have a repossession on my file?
In almost all cases, yes. A repossession signals a high risk to lenders. A substantial down payment (ideally 10% or more) is the most effective way to mitigate that risk. It reduces the loan-to-value ratio, shows your financial commitment, and makes your application much more likely to be approved.
Will lenders consider my business income if I'm self-employed and need a work van?
Absolutely. For a commercial vehicle, your business's ability to generate income is the most critical factor. Lenders who work with business owners understand that income isn't shown on a simple pay stub. You will need to provide documents like 3-6 months of business bank statements, notices of assessment from the CRA, or signed contracts to prove revenue.
