Financing a Commercial Van in New Brunswick After a Repossession
Getting back on your feet after a repossession feels tough, especially when your livelihood depends on a vehicle. If you need a commercial van to run your business in New Brunswick, you're in the right place. A past repo doesn't have to be a dead end. This calculator is designed specifically for your situation, factoring in the unique challenges and variables you face, including a credit score in the 300-500 range and the 15% New Brunswick HST.
Lenders see a commercial vehicle as an asset that generates income, which can sometimes work in your favour. They will, however, look very closely at your business's stability and your ability to make a down payment. Let's break down the numbers.
How This Calculator Works for Your Scenario
This isn't a generic calculator. It's calibrated for the realities of the subprime lending market in New Brunswick for business-use vehicles.
- New Brunswick HST (15%): We automatically calculate the 15% Harmonized Sales Tax on your entered vehicle price and add it to the total amount you need to finance. This prevents any surprises.
- High-Risk Interest Rates: A repossession places you in the highest risk category. We use an estimated interest rate range of 24.99% - 29.99% in our calculations. While this is high, it's a realistic reflection of what lenders may offer to mitigate their risk. Your final rate will depend on your specific income, down payment, and time since the credit event.
- 60-Month Term: The calculation is fixed to a 60-month (5-year) term, a common length for balancing monthly payments and total interest paid on subprime loans.
- Focus on Affordability: The goal is to find a payment that fits your business cash flow, proving to the lender that this new loan will be successful.
Example Scenarios: 60-Month Loan on a Commercial Van
Let's assume you're looking at a reliable, used commercial van priced at $25,000. Here's how the 15% NB HST and a potential down payment impact your 60-month loan. We'll use an estimated interest rate of 27.99% for this example.
| Metric | Scenario 1: $0 Down | Scenario 2: $2,500 Down | Scenario 3: $5,000 Down |
|---|---|---|---|
| Vehicle Price | $25,000.00 | $25,000.00 | $25,000.00 |
| NB HST (15%) | $3,750.00 | $3,750.00 | $3,750.00 |
| Total Cost | $28,750.00 | $28,750.00 | $28,750.00 |
| Down Payment | $0.00 | -$2,500.00 | -$5,000.00 |
| Total Amount Financed | $28,750.00 | $26,250.00 | $23,750.00 |
| Estimated Monthly Payment | ~$801/month | ~$731/month | ~$662/month |
Your Approval Odds After a Repossession
Approval is challenging, but not impossible. Lenders need to see that your situation has fundamentally changed since the repossession. Here's what they will focus on:
- Strong, Provable Income: For a commercial van, this means business bank statements, contracts, or invoices showing consistent cash flow. If you're self-employed, having clear records is non-negotiable. For a deeper look into how lenders view different income types, our article Your 'Impossible' Car Loan Just Got Approved. Self-Employed, Poor Credit. provides excellent insights.
- Significant Down Payment: As the table shows, a down payment is the most powerful tool you have. It reduces the lender's risk and shows your commitment. After a major event like a repossession or bankruptcy, this can make or break a deal. For more on this, check out our Car Loan After Bankruptcy & 400 Credit Score 2026 Guide, as the principles are very similar.
- Business Case: Be prepared to explain why this specific van is essential for your business's operation and growth. A strong business plan can be a compelling part of your application. The logic behind this is detailed in Your Brand New Business? That's Your Car Loan Resume. Get Approved, Manitoba., and the advice is relevant across Canada.
- Time: The more time that has passed since the repossession (ideally over a year) with a clean payment history on other obligations, the better your chances.
Frequently Asked Questions
What interest rate should I expect for a commercial van loan in NB after a repo?
With a credit score between 300-500 and a recent repossession on file, you should realistically prepare for interest rates in the subprime category, typically ranging from 24% to the maximum allowable rate in the province, which can be near 30%. The exact rate depends on your down payment, income stability, and the vehicle's age and value.
Is a down payment mandatory for a commercial van with a 400 credit score?
While not legally mandatory, it is practically required by most lenders in this situation. A repossession is a significant default, and lenders need to see you have 'skin in the game' to mitigate their risk. A down payment of at least 10-20% of the vehicle's selling price drastically increases your approval chances.
How does the 15% HST in New Brunswick affect my commercial van loan?
The 15% HST is calculated on the selling price of the van and is added to the total amount you finance. For example, a $30,000 van will have $4,500 in HST, making the total to be financed $34,500 before any down payment. This increases your monthly payment and the total interest paid over the life of the 60-month loan.
Can I get a loan for a commercial van if my business is new?
It's more challenging but possible. Lenders will scrutinize your business plan and personal financial stability more heavily. You will need to provide business registration documents, any existing contracts or invoices, and at least 3-6 months of business bank statements showing consistent deposits. A larger down payment will be crucial.
Will financing a commercial van help rebuild my credit after a repossession?
Yes, absolutely. A new auto loan is a powerful credit-rebuilding tool. Making every payment on time for the full 60-month term will demonstrate financial responsibility and add a positive, high-value tradeline to your credit report. This can significantly improve your score over time, making future financing much easier and cheaper to obtain.
