Your 84-Month Electric Vehicle Loan in Ontario with a 600-700 Credit Score
You're in a specific but common situation: you're ready to switch to an electric vehicle in Ontario, you have a fair credit score (600-700), and you're looking at an 84-month term to keep payments manageable. This calculator is built precisely for you. It factors in Ontario's 13% HST and provides realistic estimates for your credit profile.
A 600-700 credit score places you in the "near-prime" or "fair" credit category. This means you have good approval chances, but the interest rate will be higher than what's advertised for top-tier credit. Lenders will focus heavily on your income stability and overall debt load to approve your loan. An 84-month term is a popular choice for more expensive EVs, as it significantly lowers the monthly payment, but it's important to understand the total interest cost.
How This Calculator Works
Our calculator isn't just a generic tool; it's calibrated for the realities of financing an EV in Ontario with your credit profile. Here's the step-by-step breakdown:
- Vehicle Price: The starting point. Enter the negotiated price of the EV before taxes and fees.
- Down Payment/Trade-in: The amount you contribute upfront. This reduces the amount you need to finance and lowers the tax payable on a trade-in.
- Ontario HST (13%): We calculate the Harmonized Sales Tax (13%) on the vehicle's price after deducting your trade-in value. This tax is then added to your total loan amount. For example, on a $50,000 EV with a $5,000 trade-in, HST is calculated on $45,000 ($5,850) and added to the loan.
- Interest Rate (APR): For a 600-700 credit score, rates typically range from 8.99% to 15.99% OAC. We use a realistic average for this bracket. Your exact rate depends on your full credit history, income, and the specific lender.
- Loan Term (84 Months): We amortize the total financed amount (including tax) over 7 years to determine your estimated monthly payment.
Example Scenarios: 84-Month EV Loans in Ontario
To give you a clear picture, here are some examples based on popular EV price points. These scenarios assume a $4,000 down payment/trade-in and an estimated interest rate of 11.9% for a 650 credit score.
| Vehicle Price | Amount After Down Payment | Ontario HST (13%) | Total Financed Amount | Estimated Monthly Payment (84 Months) |
|---|---|---|---|---|
| $45,000 | $41,000 | $5,330 | $46,330 | ~$803 |
| $60,000 | $56,000 | $7,280 | $63,280 | ~$1,097 |
| $75,000 | $71,000 | $9,230 | $80,230 | ~$1,391 |
Disclaimer: These are estimates for illustrative purposes only. Your actual payment will vary based on the final approved interest rate and vehicle price.
Your Approval Odds with a 600-700 Credit Score
Your approval odds are strong, but not guaranteed. Lenders in Ontario who specialize in this credit range will prioritize two things above all: income and stability.
- Debt-to-Income (DTI) Ratio: Lenders want to see that your total monthly debt payments (including this new car loan) don't exceed 40-45% of your gross monthly income.
- Proof of Income: Consistent, provable income is non-negotiable. If you're self-employed, be prepared with tax returns or bank statements. For more on this, our guide Your 'Impossible' Car Loan Just Got Approved. Self-Employed, Poor Credit. provides valuable insights.
- Credit History Nuances: A 650 score with a past bankruptcy that is now discharged is viewed differently than a 650 score with recent missed payments. If you've recently completed a debt program, understanding your options is key. Learn more in our article on Get Car Loan After Debt Program Completion: Guide.
Even if you've faced financial challenges in the past, a stable present can secure an approval. For instance, if you're navigating a post-bankruptcy period, lenders have specific programs designed for you. Check out our resource on Bankruptcy Discharge: Your Car Loan's Starting Line. to see how a fresh start works for auto financing.
Frequently Asked Questions
What interest rate can I expect in Ontario with a 600-700 credit score for an EV?
For a 600-700 credit score in Ontario, you can typically expect an interest rate ranging from 8.99% to 15.99% on an EV loan. The final rate depends on the lender, your income stability, down payment, and the specific details of your credit file. While not prime rates, they are competitive for the near-prime category.
How is the 13% HST calculated on an EV loan in Ontario?
The 13% HST is calculated on the final selling price of the vehicle *after* any trade-in value has been deducted, but *before* a cash down payment is applied. For example, if an EV is $50,000 and you have a $5,000 trade-in, the HST is calculated on $45,000. This tax amount is then added to your principal loan balance to be financed.
Is an 84-month loan a good idea for an electric car?
It can be, but it requires careful consideration. The main advantage is a lower, more affordable monthly payment, making expensive EVs accessible. The disadvantages are paying more total interest over the life of the loan and a higher risk of being in a negative equity position (owing more than the car is worth) for a longer period.
Do I need a down payment for an EV loan with a 650 credit score?
While not always mandatory, a down payment is highly recommended, especially with a credit score in the 600-700 range. A down payment of 10% or more reduces the lender's risk, can help you secure a better interest rate, and lowers your monthly payment. It shows financial commitment and improves your approval chances significantly.
Do federal or provincial EV rebates in Ontario affect the loan amount?
Yes, significantly. The federal iZEV rebate is typically applied at the point of sale, directly reducing the vehicle's purchase price before taxes. This lowers the amount you need to finance and the total HST paid. Always confirm with your dealer how the rebate will be applied, as this directly impacts the final loan calculation.
