Financing a Commercial Van in New Brunswick After a Repossession: Your 12-Month Loan Breakdown
Navigating the auto finance market after a repossession presents a unique set of challenges, especially when you need a commercial van to run your business in New Brunswick. This calculator is specifically designed for your situation, factoring in NB's 15% HST, the high-interest rates associated with a credit score between 300-500, and the aggressive payment schedule of a 12-month term.
A past repossession signals high risk to lenders, and a commercial vehicle loan is already scrutinized more than a personal one. The goal here isn't just to get approved; it's to understand the real-world costs and ensure the monthly payment is sustainable for your business's cash flow.
How This Calculator Works for Your Specific Scenario
Our tool demystifies the numbers by breaking down the key factors that lenders in New Brunswick will use to evaluate your application:
- Vehicle Price & 15% NB HST: In New Brunswick, the 15% Harmonized Sales Tax (HST) is applied to the vehicle's selling price. This amount is typically added to the total loan. For example, a $30,000 van will have $4,500 in HST, bringing the total to $34,500 before any other fees or your down payment.
- Post-Repossession Interest Rates: With a credit score in the 300-500 range and a repossession on file, you are in the highest-risk category. You must be prepared for interest rates between 25% and 29.99%. This rate reflects the lender's risk in financing a vehicle after a previous loan default.
- The 12-Month Term Impact: A 12-month term is extremely short. While you'll pay significantly less in total interest over the life of the loan, it creates a very high monthly payment. Lenders may see this short term as a positive sign of your commitment to repay quickly, but you must be certain your business income can support the aggressive payment.
- Down Payment: After a repossession, a significant down payment is often non-negotiable. It reduces the lender's risk and shows your financial commitment. For a commercial van, expect to need at least 15-25% down.
Example Commercial Van Loan Scenarios (New Brunswick, Post-Repossession, 12 Months)
The table below illustrates how these factors combine to create your estimated monthly payment. Note the substantial impact of the short term and high interest rate.
| Vehicle Price | Down Payment (20%) | HST (15%) | Total Financed | Est. Interest Rate | Estimated Monthly Payment |
|---|---|---|---|---|---|
| $25,000 | $5,000 | $3,750 | $23,750 | 29.9% | ~$2,302/mo |
| $35,000 | $7,000 | $5,250 | $33,250 | 29.9% | ~$3,223/mo |
| $45,000 | $9,000 | $6,750 | $42,750 | 29.9% | ~$4,144/mo |
Disclaimer: These are estimates for illustrative purposes only. Your actual rate and payment will depend on the specific lender, vehicle, and your complete financial profile. O.A.C. (On Approved Credit).
Your Approval Odds and What Lenders Need to See
Getting approved for a commercial van loan after a repossession is difficult, but not impossible. Lenders will bypass the credit score and focus heavily on two things: your ability to pay and your stability.
- Strong, Verifiable Income: This is the most critical factor. As a business owner, your income might not be a simple pay stub. Lenders need to see clear proof of consistent revenue. If you're self-employed, understanding how to present your earnings is key. For more on this, check out our guide on Self-Employed? Your Income Verification Just Got Fired.
- A Substantial Down Payment: As shown above, a large down payment (20%+) dramatically lowers the amount financed and shows lenders you have 'skin in the game'. It's the best way to offset the risk of your credit history.
- A Clear Business Need: Be prepared to explain how this specific van will generate the income needed to make the high monthly payments.
- Exploring Alternatives: Traditional banks will almost certainly decline your application. Your best bet is to work with specialized subprime lenders who understand high-risk files. Learn more about your options in our article on Skip Bank Financing: Private Vehicle Purchase Alternatives. For those with fluctuating earnings, our guide on Variable Income Auto Loan 2026: Your Yes Starts Here can also provide valuable insights.
Frequently Asked Questions
Can I really get a commercial van loan in New Brunswick with a recent repossession?
Yes, it is possible, but it requires a specialized approach. Approval hinges less on your credit score and more on providing a large down payment and demonstrating strong, verifiable business income that can comfortably cover the high monthly payments. You will need to work with lenders who specialize in subprime and post-repossession financing.
Why is the interest rate so high for a 300-500 credit score after a repo?
A repossession is one of the most severe negative events on a credit report, indicating a previous failure to meet loan obligations. For lenders, this represents a very high risk of a future default. The high interest rate (often 25-29.99%) is their primary tool to compensate for taking on that significant risk.
How does the 12-month term affect my commercial van loan?
A 12-month term has two major effects. The positive is that you pay off the van very quickly and minimize the total interest paid. The significant negative is that it creates an extremely high monthly payment, which can strain your business's cash flow. You must be absolutely certain your monthly revenue can support this aggressive schedule.
Will I need a down payment for a commercial van after a repossession?
Almost certainly, yes. A substantial down payment (typically 20% or more of the vehicle's total price including tax) is usually a mandatory requirement from lenders in this situation. It reduces their lending risk and demonstrates your financial capacity and commitment to the new loan.
I'm self-employed in NB. How does that impact my application for a commercial van?
Being self-employed adds a layer of complexity because your income isn't as straightforward as a T4 employee's. Lenders will require extensive documentation, such as bank statements (often 6-12 months), tax returns (NOAs), and business registration documents to verify a stable and sufficient income stream. A clear and well-documented financial history is crucial for approval.
