Get Your Business Moving Again: Financing a Commercial Van in New Brunswick After a Repossession
A past repossession can feel like a major roadblock, especially when you need a commercial van to earn a living in New Brunswick. Traditional lenders may have said no, but your situation is far from impossible. This calculator is designed specifically for you-it accounts for the unique factors of financing in NB with a challenging credit history (scores typically 300-500), focusing on a 36-month term for a commercial vehicle.
We'll break down the numbers, including New Brunswick's 15% Harmonized Sales Tax (HST), and show you what a realistic payment looks like. Use the tool above to get an instant estimate tailored to your situation.
How This Calculator Works for Your Scenario
This isn't a generic calculator. It's calibrated for the realities of the subprime market in New Brunswick for commercial vehicles.
- Vehicle Price: The sticker price of the van you need.
- New Brunswick HST (15.00%): We automatically add the 15% HST to the vehicle price, as this tax must be financed as part of the loan. This is a crucial step many calculators miss.
- Interest Rate (Post-Repossession): We use an estimated interest rate between 24.99% and 29.99%. A repossession places you in the highest risk category, and this rate reflects the reality of what subprime lenders offer. Your final rate will depend on your specific income, down payment, and the vehicle itself.
- Loan Term (36 Months): This shorter term means a higher monthly payment, but you'll own your van faster and pay significantly less in total interest compared to longer terms.
Example Scenarios: 36-Month Commercial Van Loans in New Brunswick
To give you a clear picture, here are some data-driven examples of what you might expect. These figures include the 15% NB HST and are based on an estimated 28.99% APR O.A.C. (On Approved Credit).
| Vehicle Price | Total Financed (incl. 15% NB HST) | Estimated Monthly Payment (36 Months) |
|---|---|---|
| $20,000 | $23,000 | ~$894 |
| $25,000 | $28,750 | ~$1,118 |
| $30,000 | $34,500 | ~$1,341 |
Disclaimer: These are estimates only. Your actual payment may vary based on the lender's final approval.
Your Approval Odds After a Repossession
A repossession is one of the most serious events on a credit report. Lenders will scrutinize your application, but approval hinges on proving you are a good risk *now*, despite the past. Here's what lenders focus on:
- Stable & Provable Income: This is your most powerful tool. For commercial van buyers, income isn't always a simple pay stub. Lenders who specialize in this area understand this. If you're a contractor or run your own business, your bank statements can often be used to verify your earnings. For more details on this, see our guide: Self-Employed? Your Bank Statement is Our 'Income Proof'.
- A Significant Down Payment: After a repo, a down payment isn't just a suggestion; it's often a requirement. It reduces the lender's risk (the Loan-to-Value ratio) and shows you have skin in the game. Even 10-20% can dramatically increase your chances of approval. If coming up with cash is a challenge, there are still pathways to getting a vehicle. Learn more about your options in our article, Your Down Payment Just Called In Sick. Get Your Car.
- Time Since the Event: The more time that has passed since the repossession, the better. If you have re-established some positive credit history since then (like a secured credit card), it demonstrates recovery. Understanding the long-term impact of credit events is key; a past repo, much like a past bankruptcy, has a lasting effect that can be overcome with the right strategy. For context on how severe credit events are viewed, you might find this helpful: Your Car Loan Isn't Discharged. Even If Your Bankruptcy Is.
Frequently Asked Questions
Can I get a commercial van loan in NB with a recent repossession?
Yes, it's possible, but it requires working with specialized lenders. Your approval will heavily depend on the strength of your current income, your ability to provide a down payment, and the time that has passed since the repossession. The more you can do to reduce the lender's risk, the higher your chances.
How does the 15% HST in New Brunswick affect my van loan?
The 15% HST is calculated on the selling price of the vehicle and added to your total loan amount. For example, a $25,000 van becomes a $28,750 loan before any other fees. This increases your monthly payment and the total interest you'll pay over the life of the loan, making it a critical factor in your budget.
Why is my interest rate so high after a repossession?
A repossession signals a history of non-payment to lenders, placing you in the highest-risk borrowing category. The high interest rate (often 20% or more) is how lenders offset the increased risk that you might default on the new loan. Consistently making payments on this new loan is the fastest way to rebuild your credit and qualify for better rates in the future.
Is a 36-month term a good idea for a subprime commercial van loan?
It's a trade-off. A 36-month term results in a higher monthly payment, which can be tough on cash flow. However, the benefits are significant: you pay thousands less in total interest compared to a 60 or 72-month term, and you own your work vehicle outright much faster, turning it into a debt-free asset for your business sooner.
What kind of income proof do I need for a commercial van if I'm self-employed?
If you're self-employed, a contractor, or a small business owner in New Brunswick, you likely won't have traditional pay stubs. Lenders specializing in these loans will typically ask for 3 to 6 months of recent bank statements to verify your cash flow, along with your business registration and sometimes tax documents like a Notice of Assessment (NOA).
