New Car Loan Calculator: New Brunswick | 600-700 Credit Score | 60-Month Term
You're in the right place. This calculator is specifically designed for New Brunswick residents with a credit score between 600 and 700, looking for a 60-month loan on a new car. We'll break down the numbers, including the 15% Harmonized Sales Tax (HST), to give you a clear, realistic monthly payment estimate.
How This Calculator Works for New Brunswick Drivers
This tool isn't just a generic payment estimator. It's calibrated for your exact situation:
- Vehicle Price: The sticker price of the new car you're considering.
- Down Payment: The cash you're putting down upfront. This amount is subtracted from the vehicle price before taxes are calculated.
- Trade-in Value: The value of your current vehicle. In New Brunswick, the trade-in value is deducted from the new car's price before the 15% HST is applied, which can save you a significant amount in taxes.
- Interest Rate (APR): For a 600-700 credit score, you're in the 'fair' or 'near-prime' category. Rates are typically higher than prime rates but much better than subprime loans. A realistic range is often between 8% and 14% APR, depending on the lender and your overall financial profile.
- Loan Term: You've selected 60 months (5 years), a very common term for new car loans.
- New Brunswick HST: We automatically add the 15% HST to the final price, ensuring there are no surprises.
Understanding Your Loan: A Real-World NB Example
Let's see how the numbers work in practice. Imagine you're buying a new car with a sticker price of $35,000.
- Vehicle Price: $35,000
- Down Payment: $2,000
- Taxable Amount: $35,000 - $2,000 = $33,000
- NB HST (15%): $33,000 x 0.15 = $4,950
- Total Amount to Finance: $33,000 + $4,950 = $37,950
This $37,950 is the principal amount your loan payments will be based on. This example doesn't include a trade-in, which would further reduce your taxable amount and total loan.
Approval Odds with a 600-700 Credit Score
A score in the 600-700 range places you in a competitive but not guaranteed position. Lenders see you as a responsible borrower who may have had some past credit challenges. To them, you're a manageable risk. Your approval odds are good, but the interest rate will be key. To strengthen your application, lenders will look for:
- Stable Income: Consistent proof of income is crucial.
- Low Debt-to-Income Ratio: Lenders want to see that your existing debts (rent/mortgage, credit cards, other loans) plus the new car payment don't exceed about 40% of your gross monthly income.
- A Down Payment: Putting money down shows commitment and reduces the lender's risk, improving your chances and potentially lowering your rate.
Having the right documents ready can make all the difference. While this article is for Alberta, the required documents are very similar across Canada. For a detailed list, check out our guide on Approval Secrets: Exactly What Paperwork You Need for Alberta Car Financing.
Example New Car Payments in New Brunswick (60-Month Term)
Here are some realistic estimates based on a 9.99% APR, a common rate for the 600-700 credit range. This table assumes a $2,000 down payment.
| Vehicle Price | Taxable Amount | NB HST (15%) | Total Loan Amount | Estimated Monthly Payment |
|---|---|---|---|---|
| $25,000 | $23,000 | $3,450 | $26,450 | ~$559/mo |
| $35,000 | $33,000 | $4,950 | $37,950 | ~$802/mo |
| $45,000 | $43,000 | $6,450 | $49,450 | ~$1,045/mo |
Disclaimer: These are estimates for illustrative purposes only. Your actual rate and payment will vary based on the lender's final approval (OAC - On Approved Credit).
If you're rebuilding your credit after a major event, options are still available. Many people in your credit range are recovering from past difficulties. To understand how this works, our article on Bankruptcy Discharge: Your Car Loan's Starting Line provides valuable insight into the post-bankruptcy financing process.
Furthermore, if a past debt settlement is part of your credit history, getting a car loan is still very achievable. Learn more about your options in our guide on Zero Down Car Loan After Debt Settlement.
Frequently Asked Questions
What interest rate can I expect in New Brunswick with a 600-700 credit score?
With a credit score in the 600-700 range, you are typically considered a 'near-prime' borrower. For a new car loan in New Brunswick, you can generally expect an interest rate (APR) between 8% and 14%. The final rate depends on the specific lender, your income stability, your debt-to-income ratio, and the size of your down payment.
How is the 15% HST applied to a new car loan in New Brunswick?
In New Brunswick, the 15% HST is calculated on the final sale price of the vehicle after any down payment or trade-in value has been deducted. For example, on a $40,000 car with a $5,000 trade-in, the HST is calculated on $35,000 ($5,250 in tax), not the full $40,000. This tax amount is then added to the price to determine the total amount you finance.
Can I get a zero-down car loan with a 600 credit score?
Yes, it is possible, but a down payment is highly recommended. For borrowers in the 600-700 score range, a down payment significantly reduces the lender's risk, which increases your approval chances and can help you secure a lower interest rate. Lenders are more willing to offer $0 down options to those with higher scores and pristine credit histories.
Does a 60-month (5-year) term make sense for a new car?
A 60-month term is one of the most popular choices for new car loans. It provides a balanced approach, offering a manageable monthly payment without extending the loan over an excessively long period where you might risk owing more than the car is worth (negative equity). It's a solid, standard term for financing a new vehicle.
Besides my credit score, what else do lenders in NB look at?
Lenders look at your entire financial picture. The most important factors beyond your 600-700 score are: 1) Proof of stable and sufficient income to cover the payment. 2) Your Debt-to-Income (DTI) ratio, which compares your monthly debt payments to your monthly gross income. 3) Your employment history and residence stability. A strong profile in these areas can often outweigh a borderline credit score.
