Your 24-Month AWD Auto Loan Estimate for Ontario
You're in a specific situation: you're in Ontario, have a credit score between 600 and 700, need an All-Wheel Drive (AWD) vehicle for those tough winters, and you want to pay it off quickly over a 24-month term. This calculator is built precisely for you. It navigates the nuances of Ontario's 13% HST and the interest rates available for your credit profile.
A 600-700 credit score puts you in the "near-prime" or "fair credit" category. While you won't get the rock-bottom rates reserved for 800+ scores, you have solid options. A short 24-month term is a powerful signal to lenders that you're financially responsible, but it also means a higher monthly payment. Let's break down the numbers.
How This Calculator Works
This tool isn't just a generic payment estimator. It's calibrated for your exact scenario:
- Vehicle Price: The sticker price of the AWD you're considering.
- Down Payment & Trade-In: The cash you're putting down and/or the value of your current vehicle. A higher amount here significantly lowers your payment and improves approval odds.
- Ontario HST (13%): We automatically add the 13% Harmonized Sales Tax to the vehicle's price, as this is financed as part of the loan. On a $25,000 vehicle, that's an extra $3,250 you need to finance.
- Estimated Interest Rate: For a 600-700 credit score in Ontario on a used AWD, rates typically range from 8.99% to 15.99% APR. We use a realistic midpoint for our estimates. Your final rate depends on your specific income, debt, and vehicle choice.
- Loan Term (24 Months): This is fixed to show you the aggressive payment plan you're aiming for.
Your Approval Odds with a 600-700 Credit Score
Your approval odds are strong, but lenders will focus on two key areas: income stability and your Total Debt Service Ratio (TDSR). They want to see that your new, higher car payment (due to the short 24-month term) plus your other debts (rent/mortgage, credit cards, etc.) don't exceed about 40-45% of your gross monthly income.
Proving your income is crucial. If you don't have traditional pay stubs, don't worry, you have options. Lenders we work with are experienced with different income types. For more details, see our guide: Self-Employed? Your Bank Doesn't Need a Resume.
If your credit profile has past challenges like a consumer proposal, getting approved is still very possible, especially in a major market like Toronto. The key is working with a lender who understands how to structure these loans. Learn more in our guide on the Consumer Proposal Car Loan 2026: Get Approved in Toronto.
Example 24-Month AWD Loan Scenarios in Ontario
Here are some realistic examples for popular used AWD vehicles in the Ontario market. This table illustrates how quickly the total loan amount and monthly payments can change.
| Vehicle Price | Down Payment | Total Loan Amount (incl. 13% HST) | Estimated Monthly Payment |
|---|---|---|---|
| $20,000 | $2,000 | $20,600 | ~$950/mo |
| $25,000 | $3,000 | $25,250 | ~$1,165/mo |
| $30,000 | $4,000 | $29,900 | ~$1,380/mo |
| Disclaimer: Estimates are based on a sample 10.99% APR (OAC). Your actual payment and rate may vary. This table is for illustrative purposes only. | |||
As you can see, the 24-month term leads to substantial payments. The benefit is that you'll be car-payment-free in just two years and will have paid far less in total interest compared to a 60 or 72-month loan. If you're at the end of a lease and facing a large buyout payment, a similar financing structure can be arranged. We explain this process here: Your Lease Buyout Is Due. We're Buying It (For You).
Frequently Asked Questions
What interest rate can I expect in Ontario with a 650 credit score?
With a 650 credit score for an AWD vehicle, you're in the near-prime category. In Ontario, you can typically expect interest rates ranging from 8.99% to 15.99% APR. The final rate will depend on factors like your income stability, down payment, the age of the vehicle, and your overall debt load.
How does the 24-month term affect my approval chances?
It's a double-edged sword. Lenders view a short term favourably because it reduces their risk and shows you're financially confident. However, it creates a much higher monthly payment. Your income must be high enough to comfortably support this payment without exceeding the lender's debt-to-income ratio limits (typically around 40-45%).
Is an AWD vehicle more expensive to finance?
Not directly. The drivetrain (AWD vs. FWD) doesn't change the interest rate. However, AWD models are typically more expensive to purchase than their FWD counterparts, which means you'll be financing a larger amount. This larger loan amount results in a higher monthly payment.
Can I get an auto loan with a 600-700 score if I have a recent consumer proposal?
Yes, it's absolutely possible. Many specialized lenders in Ontario work with clients who are in or have recently completed a consumer proposal. They will focus more on your current income stability and down payment. Having a score in the 600s after a proposal shows you are actively rebuilding your credit, which is a positive sign.
How much does the 13% HST add to a car loan in Ontario?
The 13% HST is calculated on the final sale price of the vehicle after any trade-in credits are applied. For example, on a $30,000 vehicle, the HST is $3,900. This amount is added to your loan, so you would be financing a total of $33,900 before any down payment. It's a significant cost to factor into your budget.
