Used Car Financing in New Brunswick for a 600-700 Credit Score
Welcome to your specialized auto finance calculator, tailored for purchasing a used car in New Brunswick with a credit score between 600 and 700, on a 96-month loan term. We understand your specific situation-you're in the 'fair' credit range, which means you have good approval chances but need to be smart about rates and terms. This page will break down the numbers, including New Brunswick's 15% Harmonized Sales Tax (HST), to give you a clear financial picture.
How This Calculator Works
This tool is pre-configured with the key data for your scenario. Here's a breakdown of the factors at play:
- Province: New Brunswick (NB)
- Provincial Sales Tax: 15% HST is automatically calculated on the vehicle's price. This is a significant cost unique to NB that many people forget to budget for.
- Credit Profile: 600-700. This range typically qualifies for interest rates from subvented lender programs and non-prime lenders. We estimate rates between 9.99% and 15.99% for a used vehicle on a 96-month term, depending on the vehicle's age and your specific profile.
- Vehicle Type: Used Car. Lenders often have slightly higher rates for used vehicles compared to new ones, which is factored into our estimates.
- Loan Term: 96 months (8 years). This term significantly lowers your monthly payment but increases the total interest you'll pay over the life of the loan. It's a trade-off between monthly affordability and long-term cost.
The Impact of New Brunswick's 15% HST
In New Brunswick, the 15% HST is applied to the sale price of the vehicle. This amount is then added to the total you need to finance. For example:
- Vehicle Price: $20,000
- NB HST (15%): $3,000
- Total Price Before Financing: $23,000
This $3,000 is a real cost that gets financed along with the car, increasing your monthly payment.
Example 96-Month Loan Scenarios in New Brunswick
To give you a realistic idea of monthly payments, here are some data-driven examples. These figures are estimates and are subject to approved credit (OAC).
| Vehicle Price | Down Payment | Total Financed (incl. 15% NB HST) | Estimated Interest Rate | Estimated Monthly Payment |
|---|---|---|---|---|
| $18,000 | $2,000 | $18,700 | 13.99% | $325 |
| $22,000 | $2,500 | $22,800 | 12.99% | $385 |
| $27,000 | $3,000 | $28,050 | 11.99% | $455 |
*Estimates are for illustrative purposes only. Your actual payment will depend on the lender's final approval.
Your Approval Odds with a 600-700 Credit Score
Your approval odds are very high. A score in the 600-700 range is often considered 'fair' or 'near-prime'. Lenders see you as a responsible borrower who may have had some past credit challenges but is on the right track. They will focus heavily on two things: income stability and your debt-to-income ratio.
Lenders want to see that your total monthly debt payments (including the new car loan) do not exceed 40-45% of your gross monthly income. Proving your income is therefore essential. For a deeper dive into how lenders verify this, see our article on why bank statements are the only resume your car loan needs. If you've recently finished a credit-rebuilding program, your story is even stronger. Many drivers successfully secure financing right after, as explained in our guide to getting a car loan after a debt program.
It's also vital to work with reputable lenders. As you shop for loans, be sure to read our guide on how to check car loan legitimacy to avoid predatory offers.
Frequently Asked Questions
What interest rate can I expect in New Brunswick with a 600-700 credit score?
For a used car on a 96-month term, a realistic interest rate with a 600-700 credit score in New Brunswick would typically fall between 9.99% and 15.99%. The final rate depends on the specific lender, the age and mileage of the vehicle, your income stability, and your down payment amount.
Is a 96-month loan a good idea for a used car?
It can be, but caution is needed. The main benefit is a lower, more manageable monthly payment. However, the major drawbacks are paying significantly more interest over the loan's life and the high risk of 'negative equity' (owing more than the car is worth) for a longer period, as used cars depreciate faster.
How is the 15% HST calculated on a private used car sale in New Brunswick?
If you buy from a dealership, the 15% HST is calculated on the agreed-upon sale price. If you buy from a private seller, you will pay the 15% provincial portion of the tax on the greater of the purchase price or the vehicle's book value when you go to register the vehicle at Service New Brunswick.
Can I get approved for a car loan in NB with a 650 credit score if I have a low income?
Yes, it's possible, but the loan amount will be limited. Lenders prioritize your ability to repay the loan, which is measured by your debt-to-income (DTI) ratio. With a 650 score, your credit is not the main barrier. Lenders will calculate a maximum affordable payment (typically 15-20% of your gross monthly income) and approve you for a loan that fits within that budget.
Does a long loan term like 96 months hurt my credit score?
The loan term itself doesn't directly hurt your credit score. Making consistent, on-time payments for the life of the loan will have a positive impact. However, a longer loan means you carry the debt for longer, which can affect your debt-to-income ratio and your ability to qualify for other credit (like a mortgage) during that 8-year period.
