Your 72-Month Commercial Van Loan in New Brunswick: A Detailed Calculation
Getting the right commercial van is crucial for your business in New Brunswick. This calculator is specifically designed for your situation: a 600-700 credit score, a 72-month (6-year) loan term, and the 15% New Brunswick Harmonized Sales Tax (HST). Let's break down the numbers so you can plan your next business move with confidence.
How This Calculator Works for Your Scenario
This isn't a generic tool. It's calibrated for the realities of financing a commercial vehicle in NB with a fair credit profile. Here's what it considers:
- Vehicle Price: The sticker price of the commercial van you're considering.
- New Brunswick HST (15%): We automatically add the 15% NB HST to the vehicle price. A $30,000 van actually costs $34,500 to finance. This is a critical step many calculators miss.
- Loan Term: A 72-month term is selected to spread out payments, which can be helpful for managing business cash flow.
- Estimated Interest Rate (600-700 Credit): With a credit score in the 600-700 range, you fall into the 'fair' or 'near-prime' category. Lenders will generally offer rates from 9% to 18%, depending on your income stability, business history, and down payment. We use a realistic average for our estimates.
Example Commercial Van Loan Scenarios (New Brunswick)
To give you a clear picture, here are some data-driven examples based on a 72-month term and an estimated interest rate of 12.99% (O.A.C.).
| Vehicle Price | NB HST (15%) | Total Amount Financed | Estimated Monthly Payment (72 Months) |
|---|---|---|---|
| $25,000 | $3,750 | $28,750 | ~$572 |
| $35,000 | $5,250 | $40,250 | ~$801 |
| $45,000 | $6,750 | $51,750 | ~$1,029 |
| $55,000 | $8,250 | $63,250 | ~$1,258 |
Disclaimer: These are estimates for illustrative purposes only. Your actual rate and payment may vary based on the specific vehicle, lender, and your complete financial profile. On Approved Credit (O.A.C.).
Your Approval Odds for a Commercial Van (600-700 Credit)
A credit score between 600 and 700 is a solid starting point for a commercial vehicle loan. Lenders see you as a responsible borrower who may have had some past credit challenges. Approval is highly likely, but they will focus on a few key areas:
- Income Verification: As a business owner or contractor, you might not have traditional pay stubs. Lenders who specialize in this area are comfortable using bank statements, invoices, or contracts to prove your income. They want to see consistent cash flow that can easily support the new van payment. For more details on this, our guide on Car Financing for Entrepreneurs Without T4 | SkipCarDealer is a must-read.
- Business Use: Lenders are often more flexible with commercial vehicle loans because the van is an asset that generates income. Be prepared to explain how the vehicle will support or grow your business.
- Debt-to-Service Ratio (DSR): Lenders will look at your total monthly debt payments (including the new van loan) versus your gross monthly income. Keeping this ratio below 40% is a strong benchmark for approval.
Traditional banks might hesitate if you don't have perfect credit or standard T4 income. However, we work with lenders who understand the needs of small business owners. While the title mentions Ontario, the principles discussed in Self-Employed Ontario: They Want a Pay Stub? We Want You Driving. apply directly to your situation in New Brunswick.
Even if your credit score is on the lower end of this range or you're just starting to build it, options are available. To understand how financing works for those with less history, see our article: Zero Credit? Perfect. Your Canadian Car Loan Starts Here.
Frequently Asked Questions
Can I get a commercial van loan in New Brunswick with a 650 credit score?
Yes, absolutely. A 650 credit score is considered 'fair' and is typically sufficient for approval with many lenders, especially for an income-generating asset like a commercial van. Lenders will focus more heavily on your income stability and debt-to-income ratio to finalize the interest rate and terms.
How does the 15% HST in New Brunswick affect my van loan?
The 15% HST is calculated on the vehicle's selling price and added to the total amount you finance. For example, a $40,000 van will have $6,000 in tax, making the total loan amount $46,000 before any other fees. This increases your monthly payment, so it's crucial to factor it in from the start, as our calculator does.
Is a 72-month term a good idea for a commercial vehicle?
A 72-month (6-year) term can be a smart strategy for a commercial vehicle. It lowers the monthly payment, which helps with business cash flow. However, it also means you'll pay more interest over the life of the loan. The key is to balance a manageable payment with the total cost of borrowing, ensuring the van's useful life extends well beyond the loan term.
What documents do I need as a self-employed person in NB to get a van loan?
While requirements vary by lender, self-employed individuals should typically be prepared to provide: 3-6 months of business bank statements, Notices of Assessment (NOA) from the CRA for the last 2 years, articles of incorporation (if applicable), and major contract details. This documentation proves income stability in place of traditional pay stubs.
Will my interest rate be high with a 600-700 credit score?
Your interest rate will be higher than someone with a prime score (750+), but it should still be competitive. For a 600-700 score, rates for a commercial vehicle loan typically range from 9% to 18%. The final rate depends on factors like your down payment, income consistency, time in business, and the age/mileage of the van itself.
