Financing a Commercial Van in New Brunswick After a Repossession: Your 72-Month Loan Estimate
Facing a vehicle loan application after a repossession can feel like an uphill battle, especially when your business depends on it. In New Brunswick, with a credit score between 300-500, lenders view your application through a high-risk lens. However, financing a commercial van-a tool that generates income-can sometimes be viewed more favourably than a personal vehicle. This calculator is specifically designed to give you a realistic estimate based on your unique situation, factoring in New Brunswick's 15% HST and the interest rates typical for post-repossession financing.
How This Calculator Works: The New Brunswick Reality
This isn't a generic calculator. It's calibrated for the challenges and realities of your specific scenario:
- Vehicle Price: The sticker price of the commercial van you need.
- New Brunswick HST (15%): We automatically add the 15% Harmonized Sales Tax to the vehicle price. A $30,000 van is actually a $34,500 purchase before any financing costs.
- Interest Rate (APR): After a repossession, rates are high. Lenders need to offset the risk. Expect rates between 19.99% and 29.99%. We use this range to provide a realistic, not an idealistic, payment estimate.
- Loan Term: This is set to 72 months (6 years), a common term used to make monthly payments more manageable on higher-cost loans.
- Down Payment: A crucial element in your situation. A larger down payment reduces the amount you need to finance and demonstrates your commitment to the lender, significantly increasing approval odds.
Approval Odds: High-Risk, High-Reward
With a credit score in the 300-500 range and a recent repossession, your approval odds with traditional banks are extremely low. Your best path forward is with specialized subprime lenders who work with credit situations like yours.
Your key approval factors will be:
- Provable Income: Lenders need to see stable, provable income that can comfortably cover the new payment, plus your other debts and living expenses. For a commercial van, showing business revenue or contracts is powerful. The idea that the van helps you earn is a strong point, a concept we explore in Your Brand New Business? That's Your Car Loan Resume. Get Approved, Manitoba.
- Down Payment: We cannot overstate this. A down payment of 10-20% (or more) drastically changes the conversation. It lowers the lender's risk and shows you have skin in the game. A past repossession is a major credit event, similar in weight to bankruptcy, and requires a strong strategy to overcome. For more on recovering from major credit events, check out our Car Loan After Bankruptcy Discharge? The 2026 Approval Guide.
- Time Since Repossession: If the repossession was over two years ago and you've had some positive credit history since (like a secured credit card), your chances improve.
Example Scenarios: 72-Month Commercial Van Loans in New Brunswick
This table illustrates how different vehicle prices and interest rates impact your monthly payment, always including the 15% NB HST. Note: These are estimates for illustrative purposes only. OAC.
| Vehicle Price | HST (15%) | Total Price | Interest Rate (APR) | Estimated Monthly Payment (72 Months) |
|---|---|---|---|---|
| $20,000 | $3,000 | $23,000 | 22.99% | $565 |
| $25,000 | $3,750 | $28,750 | 24.99% | $735 |
| $30,000 | $4,500 | $34,500 | 26.99% | $910 |
| $35,000 | $5,250 | $40,250 | 29.99% | $1,125 |
It's crucial to be prepared for these higher payments. A down payment can significantly reduce these figures. A past history of missed payments leading to a repo can be offset by a strong down payment today. For more on this strategy, read about how Your Missed Payments? We See a Down Payment.
Frequently Asked Questions
What interest rate can I really expect in NB for a van loan after a repossession?
With a credit score between 300-500 and a repossession on file, you should realistically prepare for interest rates in the subprime category, typically ranging from 19.99% to 29.99%. The exact rate depends on the age of the repossession, your income stability, and the size of your down payment.
Is it easier to get approved for a commercial van than a personal car after a repo?
It can be. Some lenders view a commercial vehicle as an asset that generates income, which makes it a slightly less risky proposition than a personal-use car. If you can provide proof of business (registration, contracts, invoices), it strengthens your application by showing the vehicle is essential for your livelihood.
How does the 15% HST in New Brunswick impact my total loan amount?
The 15% HST is calculated on the vehicle's selling price and is added to the total amount you finance. For example, a $25,000 van will have $3,750 in HST added, making the total amount to be financed $28,750 before any other fees. This increases your monthly payment and the total interest you pay over the life of the 72-month loan.
Do I absolutely need a down payment for a commercial van with a 400 credit score?
While some lenders advertise '$0 down', it's extremely unlikely in your situation. After a repossession, lenders need to see your commitment and a reduction in their risk. A significant down payment (10-20% of the vehicle's price) is one of the most powerful tools you have to secure an approval and get a more reasonable interest rate.
How long after a repossession should I wait before applying for a van loan in New Brunswick?
Ideally, you should wait at least 12-24 months. This gives you time to re-establish some positive credit history, even if it's just with a secured credit card or a small personal loan that you pay perfectly. The more time and positive payment history you can show between the repo and your new application, the better your chances of approval will be.
