Get Your 60-Month Pickup Truck Loan Estimate with a Consumer Proposal in Ontario
Completing a consumer proposal is a major step toward financial recovery, but it often leaves a temporary mark on your credit score. If you're in Ontario and need a reliable pickup truck for work or daily life, you've come to the right place. This calculator is specifically designed for your situation: a 60-month term on a pickup truck, factoring in the realities of post-proposal financing and Ontario's 13% HST.
Traditional banks may see a credit score between 300-500 and say 'no'. We work with lenders who see your stable income and commitment to rebuilding as the real qualification. Let's find out what you can afford.
How This Calculator Works: The Ontario-Specific Math
Understanding the numbers is the first step to a confident purchase. Here's a transparent breakdown of how we estimate your payment:
- Vehicle Price: The sticker price of the pickup truck you're interested in.
- Ontario HST (13%): We add the Harmonized Sales Tax directly to the vehicle price. This is crucial because you finance the *total* cost, not just the sticker price. For example, a $25,000 truck actually costs $28,250 to finance.
- Estimated Interest Rate: For a consumer proposal profile, rates are typically higher due to perceived risk. We use realistic rates (often between 19.99% and 29.99%) from lenders who specialize in this area to provide a true-to-life estimate.
- Loan Term: You've selected 60 months, a common term that balances a manageable monthly payment with the total cost of borrowing.
Example Calculation:
Vehicle Price: $25,000
Ontario HST (13%): +$3,250
Total Amount to Finance: $28,250
Interest Rate: 24.99%
Term: 60 Months
Estimated Monthly Payment: ~$775
Your Approval Odds: Better Than You Think
With a consumer proposal on your file, your credit score is not the primary factor for approval. Lenders who specialize in this field focus on what matters now:
- Stable, Provable Income: A consistent job history and verifiable income of at least $2,200/month is the number one requirement. For those with non-traditional income, options are available. To learn more, see our guide for gig workers: Uber Driver, No Credit? Your Car Loan Just Solved Your First Problem. Toronto.
- Debt-to-Service Ratio (DSR): Lenders want to see that your new truck payment won't overextend you. They typically look for your total monthly debt payments (including the new loan) to be under 40-45% of your gross monthly income.
- Proposal Status: Whether your proposal is active or fully discharged can influence which lenders are available. Both situations are financeable, but a discharged proposal opens up more options.
Many believe a specific score is required, but that's often not the case in this lending space. For a deeper dive, read The Truth About the Minimum Credit Score for Ontario Car Loans.
Example 60-Month Pickup Truck Loan Scenarios (Ontario)
This table illustrates estimated monthly payments for different truck prices, including the 13% HST. These examples assume an interest rate of 24.99%, which is representative for this credit profile. (Note: OAC - On Approved Credit. Your actual rate may vary.)
| Vehicle Price | 13% HST | Total Financed | Est. Monthly Payment (60 Months) |
|---|---|---|---|
| $20,000 | $2,600 | $22,600 | ~$620 |
| $25,000 | $3,250 | $28,250 | ~$775 |
| $30,000 | $3,900 | $33,900 | ~$930 |
| $35,000 | $4,550 | $39,550 | ~$1,085 |
Trading in your old vehicle? If you owe more than it's worth, that's called negative equity. We have solutions for that. Find out how we can help with our guide: Negative Equity in Ontario? Your 'No' Just Became 'Yes'.
Frequently Asked Questions
Can I get a pickup truck loan while my consumer proposal is still active in Ontario?
Yes, it is possible to get a truck loan while still making payments on your consumer proposal. Lenders will require a letter from your Licensed Insolvency Trustee permitting you to take on new credit. Approval will heavily depend on your income stability and how much room you have in your budget for a new payment.
What interest rate should I realistically expect for a 60-month loan with a 400 credit score?
For a credit profile with a recent consumer proposal and a score in the 300-500 range, interest rates typically fall between 19.99% and 29.99%. The exact rate depends on factors like your income, job stability, the vehicle's age and mileage, and whether you provide a down payment.
Will I need a large down payment for a truck after a consumer proposal?
A down payment is not always mandatory, but it is highly recommended. Providing even $500 - $1,000 down shows financial commitment, reduces the lender's risk, and lowers your monthly payment. For higher-priced trucks, a lender may require a down payment to approve the loan.
How does the 13% Ontario HST impact the total loan amount?
The 13% HST is calculated on the vehicle's selling price and added to your total loan. For a $30,000 truck, this adds $3,900, making your total financed amount $33,900 before any other fees. This is a significant increase, and our calculator includes it to prevent surprises.
What documents are needed to get approved for a truck loan with a consumer proposal?
Lenders will want to verify your ability to pay. Be prepared with recent pay stubs (or bank statements if self-employed), a valid driver's license, a void cheque for direct deposit, and a copy of your consumer proposal documents (either active or certificate of completion).
