Your Guide to an 84-Month AWD Car Loan in the Northwest Territories with a 600-700 Credit Score
Navigating auto financing in the Northwest Territories presents unique opportunities. An All-Wheel Drive (AWD) vehicle isn't just a preference; it's often a necessity for navigating challenging road conditions and long distances. With a credit score between 600 and 700, you're in a strong position to secure financing, especially when you understand the landscape. This calculator is designed specifically for your situation: an 84-month term to keep payments affordable, an AWD vehicle for NWT life, and the massive advantage of 0% provincial sales tax.
How This Calculator Works for You
This tool demystifies your financing options by focusing on the key variables that matter in your scenario:
- Vehicle Price: The total cost of the AWD vehicle you're considering. Remember, in the NWT, the price you see is the price you finance, thanks to 0% PST.
- Down Payment: Any cash you put down upfront. While not always required, a down payment can lower your monthly costs and may help secure a better interest rate.
- Trade-in Value: The value of your current vehicle, which acts like a down payment. If you have an existing loan on it, you'll need to account for that balance. Dealing with an existing loan can be complex, but solutions exist. For more on this, read about how we can help if you have an Underwater Car Loan? Perfect. We'll Refinance It, Toronto!
- Interest Rate (APR): For a credit score of 600-700, lenders typically offer rates ranging from 8% to 16%. Your exact rate depends on your income stability, debt-to-income ratio, and the specific vehicle.
The NWT Advantage: 0% Tax Changes Everything
The single biggest financial benefit of buying a car in the Northwest Territories is the 0% Provincial Sales Tax (PST). This isn't a small detail; it's a game-changer for affordability.
Consider a $35,000 AWD SUV:
- In Northwest Territories (0% PST + 5% GST): Total tax is $1,750. Total financed amount is $36,750.
- In Ontario (13% HST): Total tax is $4,550. Total financed amount is $39,550.
You save $2,800 instantly, which means a lower loan principal and less interest paid over the 84-month term.
Example AWD Vehicle Loan Scenarios (84-Month Term)
Let's look at some realistic monthly payments for an 84-month loan in the NWT, assuming a 11.99% APR, which is a common rate for the 600-700 credit range. All prices include the 5% GST.
| Total Vehicle Price (incl. GST) | Down Payment | Amount Financed | Estimated Monthly Payment | Total Interest Paid |
|---|---|---|---|---|
| $21,000 | $0 | $21,000 | ~$370 | ~$10,080 |
| $31,500 | $2,000 | $29,500 | ~$520 | ~$14,180 |
| $42,000 | $4,000 | $38,000 | ~$670 | ~$18,280 |
*Payments are estimates. Your actual rate and payment may vary.
Your Approval Odds with a 600-700 Credit Score
Your approval odds are very high. Lenders view a 600-700 score as "near-prime." They see you as a responsible borrower who might have had some past credit challenges but is on the right track. They will focus on two key factors:
- Income Stability: Lenders want to see a consistent and provable source of income. This doesn't have to be a traditional 9-to-5 job. If you have non-traditional income, it's important to work with a lender who understands your situation. Our expertise shines here, especially if you're in a unique situation, as detailed in our guide for those who are Self-Employed? Your Income Verification Just Got Fired.
- Debt-to-Income (DTI) Ratio: This is the percentage of your gross monthly income that goes towards debt payments (rent/mortgage, credit cards, other loans). Lenders generally look for a DTI below 40-45%. An 84-month term helps keep the new auto loan payment low, which positively impacts your DTI.
Even if you've faced rejection from traditional banks, don't be discouraged. Many people find success with specialized lenders who understand fair credit profiles. In fact, we believe that being previously turned down is not the end of the road. See our approach to these situations in Why 'Denied Everywhere' Is Our Favourite Challenge, Vancouver.
Frequently Asked Questions
What interest rate can I expect in NWT with a 650 credit score for an 84-month loan?
With a 650 credit score in the Northwest Territories, you can typically expect an interest rate between 8% and 16% for an 84-month term on an AWD vehicle. The final rate will depend on your income, employment history, and the specific vehicle's age and mileage. A longer term like 84 months might have a slightly higher rate than a 60-month term.
Does the 0% tax in the Northwest Territories apply to the entire vehicle price?
The Northwest Territories has no Provincial Sales Tax (PST). However, you are still required to pay the 5% federal Goods and Services Tax (GST) on the vehicle's purchase price. So, while you save significantly compared to provinces with PST or HST, the purchase is not entirely tax-free.
Is an 84-month loan a good idea for an AWD vehicle?
An 84-month (7-year) loan can be a strategic choice. The primary benefit is a lower, more manageable monthly payment, which can free up cash flow. The main drawback is that you'll pay more in total interest over the life of the loan. It's best suited for newer, reliable AWD vehicles that are expected to last well beyond the loan term.
Can I get approved with a 600-700 score if I'm self-employed in the NWT?
Yes, absolutely. Approval for self-employed individuals with a 600-700 credit score is very common. Lenders will want to see proof of stable income, typically through bank statements or tax documents, rather than traditional pay stubs. Working with a financing partner who specializes in self-employment income is key to a smooth process.
How much of a down payment do I need for an AWD vehicle with my credit score?
With a credit score in the 600-700 range, a down payment is often not mandatory. Many lenders offer zero-down financing. However, providing a down payment of 10% or more can be beneficial. It reduces the amount you need to finance, lowers your monthly payment, and shows financial commitment to the lender, which could help you secure a better interest rate. For more information on this topic, check out our guide on Zero Down Car Loan After Debt Settlement, which has principles that apply even without a settlement.
