Used Car Loan Payments in New Brunswick for 600-700 Credit Scores
Navigating the world of used car financing in New Brunswick with a credit score between 600 and 700 can feel complex, but you're in a strong position to secure a loan. This calculator is specifically designed for your situation-factoring in New Brunswick's 15% HST, a 72-month term, and the typical interest rates available for your credit profile.
How This Calculator Works for Your Scenario
This isn't a generic tool. It uses data relevant to your specific circumstances to provide a realistic estimate. Here's what's happening behind the numbers:
- Vehicle Price & 15% HST: In New Brunswick, the 15% Harmonized Sales Tax (HST) is applied to the purchase price of a used vehicle sold by a dealer. We automatically add this to the vehicle price to calculate the total amount you need to finance. For example, a $20,000 car actually costs $23,000 to finance before any other fees.
- Estimated Interest Rate (APR): With a credit score in the 600-700 range, you are typically considered a "near-prime" borrower. For a used vehicle, lenders will likely offer you an interest rate between 8.99% and 15.99%. Your exact rate depends on your specific credit history, income, and the vehicle you choose. Our calculator uses a midpoint in this range for its estimates.
- 72-Month Loan Term: A 72-month (6-year) term is a popular choice for lowering monthly payments. While this makes the vehicle more affordable on a month-to-month basis, it's important to remember that you will pay more in total interest over the life of the loan compared to a shorter term.
Example: 72-Month Used Car Loan Scenarios in New Brunswick
To give you a clearer picture, here are some estimated monthly payments for different used car prices. These examples assume a 12.99% APR and include the 15% NB HST, with a $0 down payment.
| Vehicle Price | Total Financed (with 15% HST) | Estimated Monthly Payment (72 Months) |
|---|---|---|
| $15,000 | $17,250 | ~$346 |
| $20,000 | $23,000 | ~$461 |
| $25,000 | $28,750 | ~$576 |
Disclaimer: These are estimates for illustrative purposes only. Your actual payment will vary based on the final approved interest rate (OAC).
Your Approval Odds with a 600-700 Credit Score
Your approval odds are quite high. Lenders see a 600-700 score as a sign that you are actively managing your credit, even if you've had challenges in the past. To secure the best possible rate, lenders will also consider:
- Stable Income: Lenders want to see consistent, provable income that can comfortably cover the new payment, plus your existing debts.
- Debt-to-Income Ratio: Your total monthly debt payments (including the new car loan) should ideally be less than 40% of your gross monthly income.
- Down Payment: A down payment of 10% or more significantly reduces the lender's risk, which can lead to a better interest rate and a higher chance of approval.
Even if your situation is complex due to self-employment or past credit issues, options are available. Many people find that Your 'Impossible' Car Loan Just Got Approved. Self-Employed, Poor Credit. This is because specialized lenders focus on your current ability to pay rather than just your past history. If you've had a consumer proposal, don't be discouraged; many lenders understand this is a responsible step towards financial health. For more details, see our guide on how Your Consumer Proposal? We Don't Judge Your Drive. Finally, remember that these financing options aren't limited to dealerships. You can also get financing for vehicles from private sellers, a process we simplify in our guide: Bad Credit? Private Sale? We're Already Writing the Cheque.
Frequently Asked Questions
What interest rate can I expect for a used car loan in New Brunswick with a 650 credit score?
With a credit score of 650, you fall squarely in the 'fair' or 'near-prime' category. For a used car on a 72-month term in New Brunswick, you can realistically expect an interest rate (APR) in the range of 8.99% to 15.99%. The final rate will depend on factors like your income stability, debt-to-income ratio, and the age and mileage of the vehicle.
How does the 15% HST in New Brunswick affect my total car loan amount?
The 15% HST is a significant factor. It's calculated on the vehicle's selling price and added to the total amount you finance. For example, a car listed at $20,000 will have $3,000 in HST added, making the total amount to be financed $23,000 before any other fees, warranties, or a down payment.
Is a 72-month loan a good idea for a used car?
A 72-month (6-year) loan can be a strategic choice to achieve a lower, more manageable monthly payment. However, the trade-off is that you'll pay more interest over the life of the loan. It's also important to consider that you may owe more than the car is worth (negative equity) for a longer period, which can be a factor if you decide to sell or trade it in early.
Will making a down payment help my approval chances with a fair credit score?
Absolutely. A down payment is one of the most effective ways to improve your loan application. It lowers the amount the lender has to risk, which can lead to a higher chance of approval, a lower interest rate, and a smaller monthly payment. Even a down payment of $500 to $1,000 can make a positive difference.
Can I get approved for a car loan in New Brunswick if I have a past consumer proposal?
Yes, you can. Many lenders in New Brunswick specialize in financing for individuals who are in or have completed a consumer proposal. As long as you have stable, provable income and have been managing your finances well since the proposal, getting approved for a car loan is very achievable.
