Car Loan Calculator for New Brunswick (600-700 Credit Score)
Navigating the auto finance world in New Brunswick with a credit score between 600 and 700 can feel like you're in a grey area. You're not in the subprime category, but you might not qualify for the rock-bottom interest rates advertised on TV. This calculator is designed specifically for you. It uses data relevant to the New Brunswick market, including the 15% Harmonized Sales Tax (HST), and provides realistic estimates for individuals in the 'fair' credit range.
How This Calculator Works for New Brunswickers
This tool demystifies the numbers by breaking down the key factors that determine your monthly payment. Here's what's happening behind the scenes:
- Vehicle Price: The sticker price of the car you're considering.
- Down Payment / Trade-in: The amount of cash you put down or the value of your trade-in. This amount is subtracted from the vehicle price before taxes are calculated, reducing your total loan amount.
- New Brunswick HST (15%): We automatically calculate the 15% HST on the post-down-payment vehicle price and add it to your total loan. For example, a $25,000 vehicle requires $3,750 in HST, bringing the total to be financed to $28,750 (before any fees).
- Loan Term (Months): The length of your loan. A longer term (e.g., 84 months) means lower monthly payments but more interest paid over time. A shorter term (e.g., 60 months) has higher payments but saves you money on interest.
- Interest Rate (APR): For a 600-700 credit score in New Brunswick, rates typically range from 8.99% to 15.99% OAC (On Approved Credit). Your exact rate depends on your income stability, debt-to-income ratio, and the vehicle's age. We use a realistic midpoint for our estimates.
Your Approval Odds with a 600-700 Credit Score
A score in this range is generally considered 'fair' by most lenders. Your approval odds are high, especially with specialized lenders who understand this credit tier. Lenders will be looking for:
- Stable, Verifiable Income: At least $2,000 per month is a common minimum threshold. If you're self-employed, having clear bank statements is key. For more on this, see our guide: Self-Employed? Your Bank Account *Is* Your Proof. Get Approved.
- A Reasonable Debt-to-Service Ratio (DSR): Lenders want to see that your total monthly debt payments (including the new car loan) don't exceed 40-45% of your gross monthly income.
- A Down Payment: While not always mandatory, a down payment of 10% or more significantly strengthens your application. It shows commitment and reduces the lender's risk. Even if you think you can't manage one, options exist. Learn more here: Your Down Payment Just Called In Sick. Get Your Car.
Example Scenarios in New Brunswick
Let's see how the numbers play out on different vehicles. These examples assume a 72-month term and an estimated interest rate of 11.99% APR, which is a common rate for this credit profile.
| Vehicle Type | Vehicle Price | Total with 15% NB HST | Estimated Monthly Payment |
|---|---|---|---|
| Compact Sedan | $20,000 | $23,000 | ~$440 |
| Small SUV | $30,000 | $34,500 | ~$661 |
| Used Half-Ton Truck | $40,000 | $46,000 | ~$881 |
Disclaimer: These are estimates only. Your actual payment will depend on the final approved interest rate, term, and any additional fees or warranties.
If you've had past credit issues like a consumer proposal, don't assume you won't be approved. Many lenders specialize in these situations. Read about your options in our guide: Your Consumer Proposal? We're Handing You Keys.
Frequently Asked Questions
What interest rate can I expect with a 650 credit score in New Brunswick?
With a 650 credit score, you're in the 'fair' credit category. In New Brunswick, you can typically expect an interest rate ranging from 8.99% to 15.99% OAC. The final rate will depend on factors like your income stability, down payment amount, and the age and mileage of the vehicle you choose.
How is the 15% HST calculated on a car loan in NB?
The 15% HST is calculated on the final sale price of the vehicle *after* your down payment or trade-in value has been subtracted. For example, on a $30,000 car with a $5,000 trade-in, the HST is calculated on the remaining $25,000 ($3,750 in tax). This tax amount is then added to the $25,000, and the total ($28,750) is what gets financed.
Can I get approved for a car loan in NB with a 600 score and a past consumer proposal?
Yes, approval is possible. Many lenders in New Brunswick specialize in financing for individuals who have completed or are still in a consumer proposal. They will focus more on your current income stability and ability to make payments rather than solely on your past credit history. A down payment can significantly help your chances.
Do I need a down payment for a car loan in New Brunswick with fair credit?
A down payment is not always mandatory, but it is highly recommended. For a credit score in the 600-700 range, providing a down payment of 10% or more reduces the lender's risk, which can lead to a better interest rate and a higher chance of approval. It also lowers your monthly payments.
How much car can I afford with my 600-700 credit score?
Lenders generally want your total monthly debt payments (including the new car loan, rent/mortgage, credit cards, etc.) to be less than 40-45% of your gross monthly income. A good rule of thumb is to keep your car payment itself under 15-20% of your gross monthly income. For example, if you make $4,000 a month, a car payment of around $600-$800 would be considered affordable by most lenders.
