Get Your Business Moving: 84-Month Commercial Van Financing in Quebec After Bankruptcy
Rebuilding after bankruptcy requires the right tools, and for many entrepreneurs and tradespeople in Quebec, a reliable commercial van is non-negotiable. We understand that a credit score between 300-500 can feel like a major roadblock. This calculator is specifically designed to provide realistic estimates for your unique situation: financing a commercial van on an 84-month term in Quebec, post-bankruptcy.
Traditional banks often decline applications based on credit score alone. However, specialized lenders focus on your current financial stability and your ability to pay. Let's get you the numbers you need to plan your next move.
How This Calculator Works
This tool provides an estimate, not a guarantee. The most significant variable in your calculation will be the interest rate, which is determined by lenders based on your specific file. Here's what we factor in:
- Vehicle Price: The asking price of the commercial van.
- Down Payment/Trade-In: A larger down payment significantly reduces the lender's risk and can lower your interest rate and monthly payment.
- Quebec Sales Tax (QST): Our calculator automatically adds the 9.975% QST, as this is required for all dealer vehicle purchases in Quebec. The tax is calculated on the vehicle price *after* any trade-in value is applied. Private sales have different tax rules.
- Interest Rate (APR): For a post-bankruptcy profile (300-500 credit score), rates typically range from 18% to 29.99%. We use a realistic average within this range for our estimates.
- Loan Term: You've selected 84 months, the longest term available. This results in the lowest possible monthly payment but increases the total interest paid over the life of the loan.
Example Commercial Van Loan Scenarios (84-Month Term)
Let's look at some real-world numbers for a typical post-bankruptcy applicant in Quebec. These examples assume a 22.99% APR and a $2,000 down payment.
| Vehicle Price | QST (9.975%) | Total Amount Financed (After $2k Down) | Estimated Monthly Payment |
|---|---|---|---|
| $25,000 | $2,493.75 | $25,493.75 | $645 |
| $35,000 | $3,491.25 | $36,491.25 | $923 |
| $45,000 | $4,488.75 | $47,488.75 | $1,201 |
Disclaimer: These are estimates for illustrative purposes only. Your actual payment and rate will vary based on lender approval (OAC).
Your Approval Odds: What Lenders in Quebec Look For
A credit score of 300-500 doesn't automatically mean denial. Lenders specializing in post-bankruptcy auto loans prioritize these factors:
- Proof of Income: This is the most critical factor. Lenders need to see stable, provable income of at least $2,200 per month. For business owners, this can be more complex. If you're self-employed, your bank statements are your best tool for proving your income. For a deeper dive, read our guide: Self-Employed? Your Bank Account *Is* Your Proof. Get Approved.
- Time Since Bankruptcy Discharge: The more time that has passed since your discharge, the better. Lenders want to see that you are on a stable path to rebuilding your finances.
- Re-established Credit: Even a small, secured credit card with a positive payment history shows lenders you are serious about financial recovery. This simple step can dramatically improve your chances. Our guide on life after bankruptcy offers more tips. Check out our New PR After Bankruptcy Canada Guide for strategies.
- Debt-to-Service Ratio (DSR): Lenders will look at your total monthly debt payments (including the new van loan) and compare it to your gross monthly income. They generally want this ratio to be under 40%.
While a past bankruptcy presents challenges, a strong income and a solid plan are what truly matter. We believe in second chances, a philosophy we apply everywhere. To see how we approach this in other provinces, you can read Alberta: They See Bankruptcy. We See Your Next Car. Drive Today.
Frequently Asked Questions
Can I really get a loan for a commercial van in Quebec right after my bankruptcy is discharged?
Yes, it is possible. While some lenders require a waiting period, many specialized lenders will approve you as soon as you are officially discharged. The key requirements will be stable, provable income and a reasonable down payment to offset the lender's risk.
What interest rate should I expect for an 84-month van loan with a 400 credit score?
With a credit score in the 300-500 range post-bankruptcy, you should realistically expect an interest rate (APR) between 18% and 29.99%. An 84-month term is considered higher risk, so the rate may be at the higher end of this spectrum. A significant down payment is the best way to help secure a more favourable rate.
How much income do I need to prove for a commercial van loan?
Most subprime lenders in Quebec require a minimum gross monthly income of around $2,200. However, for a commercial vehicle, they will also assess the vehicle's cost against your income. A general rule is that your total monthly car payment should not exceed 15-20% of your gross monthly income.
Is an 84-month term a good idea for a post-bankruptcy loan?
It can be a useful tool to achieve an affordable monthly payment, which is critical when you're rebuilding your finances. However, be aware that you will pay significantly more in total interest over the life of the loan. A great strategy is to take the 84-month term for payment flexibility and then make extra payments when possible to pay it off faster. Down the road, you may also be able to refinance. For more on that, see our guide on Approval Secrets: How to Refinance Your Canadian Car Loan with Bad Credit.
Will I need a co-signer for a commercial vehicle loan after bankruptcy?
Not necessarily. While a strong co-signer can always help, many of our lending partners specialize in approvals without one. If you have solid, provable income and have been discharged from bankruptcy, you have a strong chance of being approved on your own merit.
