24-Month Truck Loan Calculator for Ontario (600-700 Credit Score)
You're in a specific situation: you need a truck in Ontario, have a credit score between 600 and 700, and want to pay it off quickly with a 24-month term. This is a smart approach to minimize interest costs, and you've come to the right place. This calculator is designed specifically for your scenario, factoring in the realities of Ontario's 13% HST and the interest rates available for your credit profile.
How This Calculator Works for You
This tool does more than just divide numbers. It builds a realistic financial picture based on the key factors for an Ontario truck loan with a fair credit score.
- Vehicle Price: The sticker price of the truck you're considering.
- Down Payment/Trade-in: The amount you're putting down in cash or the value of your trade-in. This reduces the total amount you need to finance.
- Ontario HST (13%): We automatically add the 13% Harmonized Sales Tax to the vehicle price, as this is a mandatory cost that must be financed if not paid upfront. For example, a $35,000 truck will have $4,550 in HST, making the total pre-financing cost $39,550.
- Estimated Interest Rate (600-700 Score): A credit score in this range is considered 'fair' or 'near-prime'. You won't get the 0% financing advertised for top-tier credit, but you can secure competitive rates. We base our calculations on an estimated interest rate range of 8.99% to 14.99%, which is typical for this credit tier in Ontario.
- Loan Term (24 Months): Your chosen term is aggressive and smart for saving on interest. The calculator will show you the higher monthly payment that comes with this shorter term.
Disclaimer: The calculated payments are estimates only and are for informational purposes. Your actual interest rate and payment will depend on the specific lender's approval (OAC - On Approved Credit).
Approval Odds with a 600-700 Credit Score in Ontario
Your approval odds are high. A score in the 600s is a common starting point for many Ontarians, and lenders are very familiar with this profile. They will look beyond just the score and focus on:
- Income Stability: Demonstrating consistent employment is key. Even non-traditional income sources can be used for approval. For instance, if you receive EI, it's important to know your options. For more on this, check out our guide on EI Income? Your Car Loan Just Said 'Welcome Aboard!'.
- Debt-to-Income Ratio: Lenders want to see that your total monthly debt payments (including the new truck loan) don't exceed a certain percentage of your gross monthly income, typically around 40-45%.
- Down Payment: While not always mandatory, a down payment of 10% or more significantly strengthens your application. It shows commitment and reduces the lender's risk.
Example 24-Month Truck Loan Scenarios in Ontario
Here's a breakdown of potential monthly payments for different truck prices. This table includes the 13% HST and uses an estimated interest rate of 10.99% for a 600-700 credit score.
| Vehicle Price | Price with 13% HST | Amount Financed (w/ $2,000 Down) | Estimated Monthly Payment (24 Months) |
|---|---|---|---|
| $25,000 | $28,250 | $26,250 | ~$1,225/mo |
| $35,000 | $39,550 | $37,550 | ~$1,752/mo |
| $45,000 | $50,850 | $48,850 | ~$2,279/mo |
As you can see, the 24-month term leads to higher payments but allows you to own the truck free-and-clear in just two years. If you are considering buying from a private seller to keep costs down, specialized financing is available. Learn more in our article: Bad Credit? Private Sale? We're Already Writing the Cheque.
For those coming to the end of a vehicle lease, you might be considering a truck as your next vehicle. Understanding how to finance the residual value of your current car can be complex, but we have resources to help. You can explore your options here: Your Lease Is Over. The Car's Story Isn't. Finance Full Residual, Toronto.
Frequently Asked Questions
What interest rate can I expect for a truck loan in Ontario with a 650 credit score?
With a credit score of 650, you fall squarely in the 'fair' or 'near-prime' category. For a truck loan in Ontario, you can generally expect interest rates ranging from 8.99% to 14.99%. The final rate depends on factors like your income stability, down payment size, and the age and mileage of the truck.
How does the 24-month term affect my truck loan approval and payments?
A 24-month term has two main effects. Positively, it shows financial discipline and reduces the lender's long-term risk, which can be a plus for approval. Negatively, it results in a much higher monthly payment compared to longer terms (like 60 or 72 months). Lenders will need to ensure your income can comfortably support this higher payment within your debt-to-income ratio.
Is a down payment required for a truck loan with a 600-700 credit score?
While not always mandatory, a down payment is highly recommended. For a 600-700 credit score, providing a down payment of 10-20% significantly increases your chances of approval, can help secure a lower interest rate, and reduces the total amount of interest you'll pay over the life of the loan.
How is the 13% HST applied to a used truck purchase in Ontario?
If you buy a used truck from a registered dealership in Ontario, the 13% HST is charged on the sale price. This amount is added to the price before financing. If you buy from a private seller, you will pay the 13% RST (Retail Sales Tax) portion directly to the Ministry of Transportation when you register the vehicle, based on the higher of the purchase price or the vehicle's wholesale value (Red Book).
Can I finance a truck from a private seller with my credit score?
Yes, you can. While traditional banks are often hesitant to finance private sales, specialized lenders are equipped to handle them. They will verify the vehicle's condition and ensure there are no liens on it. Having a 600-700 credit score makes you a strong candidate for these types of private sale auto loans.
