Used Car Financing in NWT: Your 84-Month Loan with a 600-700 Credit Score
Navigating the auto loan process in the Northwest Territories with a credit score between 600 and 700 puts you in a strong position. You're not considered a high-risk borrower, but you're in a phase where lenders will look closely at your financial stability. This calculator is specifically designed for your situation: financing a used car over a longer 84-month term, taking into account the unique tax rules of the NWT.
An 84-month term can significantly lower your monthly payments, making a more reliable vehicle accessible. Let's break down the numbers and what you can expect.
How This Calculator Works
This tool empowers you to see real numbers based on your specific scenario. Here's how to use it effectively:
- Vehicle Price: Enter the sticker price of the used car you're considering. Remember that in the NWT, you only pay the 5% federal Goods and Services Tax (GST), not any provincial sales tax. The calculator adds this for you.
- Down Payment: This is the cash you're putting down upfront. A larger down payment reduces your loan amount and can improve your interest rate. If you're looking to finance with little to no money down, it's still possible. For more on this, check out our guide on No Down Payment? Your Gig Just Bought a Hybrid. Seriously.
- Trade-in Value: The amount a dealership offers for your current vehicle. This also acts like a down payment.
- Interest Rate (APR): This is the most critical factor. For a 600-700 credit score on a used vehicle over 84 months, a realistic APR is typically between 9.99% and 15.99%. We recommend starting with 12.99% as a reasonable estimate.
Approval Odds for Your Profile: Good
With a credit score in the 600-700 range, your approval odds are good. Lenders see you as a responsible borrower who is likely building or rebuilding credit. They will focus on two key areas:
- Income Stability: Lenders need to see consistent, provable income that can comfortably cover the new car payment plus your existing debts. Whether you're traditionally employed or have a different income stream, proving it is key. If you're self-employed, we have specific advice that can help: Self-Employed? Your Bank Doesn't Need a Resume.
- Debt-to-Service Ratio (TDSR): This is the percentage of your gross monthly income that goes towards debt payments (rent/mortgage, credit cards, other loans, and the new car payment). Lenders generally want this to be below 40-45%.
The 84-month term on a used car can sometimes be a hurdle. Lenders may have restrictions on the age and mileage of the vehicle for such a long term (e.g., the car must be less than 6 years old). However, our network of lenders specializes in these exact scenarios.
Example Scenarios: 84-Month Used Car Loan in NWT
Let's look at some real-world numbers. These examples assume a 12.99% APR and a $1,000 down payment, which is common for this credit tier. The price includes the mandatory 5% GST.
| Vehicle Sticker Price | 5% GST | Total Price | Total Financed (after $1k down) | Estimated Monthly Payment (84 Months) |
|---|---|---|---|---|
| $20,000 | $1,000 | $21,000 | $20,000 | ~$362/month |
| $25,000 | $1,250 | $26,250 | $25,250 | ~$457/month |
| $30,000 | $1,500 | $31,500 | $30,500 | ~$552/month |
*Payments are estimates. Your actual rate and payment may vary based on lender approval and vehicle specifics.
Improving your credit score even slightly can have a big impact on your interest rate and total cost. For those looking to manage existing obligations, our guide on how a Bad Credit Car Loan: Consolidate Payday Debt Canada 2026 can be a powerful tool.
Frequently Asked Questions
What interest rate can I expect in NWT with a 650 credit score for a used car?
With a credit score of around 650, financing a used car over an 84-month term, you can typically expect an interest rate (APR) in the range of 9.99% to 15.99%. The final rate depends on your overall financial profile, including income stability, debt-to-income ratio, and the specific vehicle's age and mileage.
Does the 84-month term affect my approval for a used car loan?
Yes, it can. Lenders are more cautious with long terms on used vehicles because of depreciation. They often have rules, such as the car's age plus the loan term not exceeding 10 years (e.g., a 3-year-old car is eligible for an 84-month/7-year term). Newer used cars have a much higher chance of being approved for this term length.
Is there any sales tax on used cars in the Northwest Territories?
The Northwest Territories does not have a Provincial Sales Tax (PST). However, you are required to pay the 5% federal Goods and Services Tax (GST) on the purchase price of the vehicle from a dealership. This 5% is added to the vehicle price before financing.
How much of a down payment do I need with a 600-700 credit score?
While a down payment is not always mandatory, providing one is highly recommended with a 600-700 credit score. It shows financial commitment and reduces the lender's risk. A down payment of $500 to $2,000, or 10% of the vehicle's price, can significantly improve your approval chances and potentially lower your interest rate.
Can I finance an older used car (e.g., 8+ years old) for 84 months?
It is very unlikely. Most lenders will not extend an 84-month loan on a vehicle that is already 8 years old or older. The risk of mechanical failure and the vehicle's value dropping below the loan balance is too high. For older vehicles, shorter loan terms of 48 to 60 months are standard.
