New Car Loan Calculator for New Brunswick (96-Month Term, 700+ Credit)
Welcome! You're in a strong position. With a credit score of 700 or higher, you have access to some of the best auto financing rates available. This calculator is specifically tailored to your situation: purchasing a new vehicle in New Brunswick with a 96-month (8-year) loan term. Use it to get a clear, data-driven estimate of your monthly payments and total costs, factoring in the provincial 15% HST.
How This Calculator Works for New Brunswick Buyers
Our tool provides a precise estimate by breaking down the key financial components of your purchase. Here's what it considers:
- Vehicle Price: The starting point of your calculation-the sticker price of the new car you're considering.
- Down Payment & Trade-in: The amount you pay upfront or the value of your trade-in. This amount is subtracted from the total price to reduce the amount you need to finance. A larger down payment is always beneficial as it lowers your monthly payment and reduces the total interest you'll pay. However, some buyers prefer to keep their cash on hand. For more on this strategy, see Your Cash Stays Put. Assets Just Bought Your Car, No Down Payment, Toronto.
- New Brunswick HST (15%): In New Brunswick, a Harmonized Sales Tax (HST) of 15% is applied to the vehicle's selling price. Our calculator automatically adds this to your total, ensuring there are no surprises. For example, a $40,000 vehicle will have $6,000 in HST, bringing the total to $46,000 before your down payment.
- Interest Rate (APR): With a 700+ credit score, you qualify for prime rates. For a new vehicle on a 96-month term, you can expect rates to be competitive, typically ranging from 6.5% to 8.5% APR (OAC - On Approved Credit). Longer terms sometimes carry slightly higher rates than shorter ones.
- Loan Term: This is fixed at 96 months, which spreads the cost over eight years to achieve a lower monthly payment.
Example Scenarios: 96-Month New Car Loans in New Brunswick
To give you a practical idea of costs, here are a few examples based on popular new vehicle price points in New Brunswick. These estimates assume a 7.49% APR, which is a common rate for a well-qualified buyer on an extended term.
| Vehicle Price | Total Price with 15% HST | Down Payment | Total Financed Amount | Estimated Monthly Payment* |
|---|---|---|---|---|
| $35,000 | $40,250 | $5,000 | $35,250 | ~$481/month |
| $50,000 | $57,500 | $7,500 | $50,000 | ~$682/month |
| $65,000 | $74,750 | $10,000 | $64,750 | ~$883/month |
*Estimates are for illustrative purposes only. Rates are On Approved Credit (OAC) and subject to change.
Approval Odds with a 700+ Credit Score
Your approval odds are excellent. With a score above 700, lenders see you as a low-risk borrower. The main factor they will assess is your capacity to handle the payment, which is determined by your Debt-to-Income (DTI) ratio. Lenders generally want to see that your total monthly debt obligations (including the new car payment) do not exceed 40-45% of your gross monthly income. For instance, if you earn $6,000/month, your total debt payments should ideally be under $2,400.
Even with great credit, your income source matters. For those who are self-employed, the documentation process can be slightly different. Learn more in our guide: Self-Employed? Your Bank Doesn't Need a Resume.
The Pros and Cons of a 96-Month Loan Term
An 8-year loan term can be a useful tool, but it's important to understand the trade-offs.
Pros:
- Lower Monthly Payments: Spreading the cost over a longer period significantly reduces your monthly payment, making a more expensive vehicle feel more affordable.
Cons:
- Higher Total Interest Cost: You will pay much more in interest over eight years compared to a 60 or 72-month loan.
- Negative Equity Risk: Cars depreciate fastest in their first few years. With a 96-month loan, your payments build equity very slowly. This makes it easy to become 'upside-down' on your loan, meaning you owe more than the car is worth. If you find yourself in this situation down the road, it's important to know your options. Explore solutions in our article on Upside-Down Car Loan? How to Refinance Without a Trade 2026.
Frequently Asked Questions
What interest rate can I expect for a new car in New Brunswick with a 700+ credit score?
With a credit score over 700, you are considered a prime borrower. For a new car on a 96-month term, you can typically expect competitive rates, often in the range of 6.5% to 8.5% APR. The final rate depends on the specific lender, current market conditions, and your overall financial profile.
How is the 15% HST calculated on a new car purchase in NB?
The 15% HST in New Brunswick is calculated on the final selling price of the vehicle, after any manufacturer rebates or discounts are applied, but before your down payment or trade-in value is deducted. For example, on a $40,000 car with a $2,000 rebate, HST is calculated on $38,000.
Is a 96-month car loan a good idea?
It depends on your priorities. If your primary goal is the lowest possible monthly payment to fit a specific vehicle into your budget, it can be an effective tool. However, you will pay more in total interest and face a higher risk of negative equity for a longer period. It's best for buyers who plan to keep their vehicle for the full term.
Does my 700+ credit score guarantee approval for any car I want?
Not necessarily. While a 700+ score makes you a highly attractive applicant, lenders must also approve your income and ability to repay the loan (Debt-to-Income ratio). If the monthly payment for a very expensive vehicle exceeds what your income can safely support, a lender may ask for a larger down payment or suggest a more affordable vehicle.
Can I pay off a 96-month loan early without penalties in Canada?
Yes, in Canada, most auto loans, including those from major banks and manufacturer financing arms, are open loans. This means you can make extra payments or pay off the entire balance at any time without incurring a penalty. It is always wise to confirm this with your specific lender before signing.
