New Car Loan in Quebec with a Consumer Proposal: Your 84-Month Estimate
Navigating a major purchase like a new car while in a consumer proposal can feel impossible, but it's more common than you think. Lenders in Quebec understand that life happens and that reliable transportation is a necessity, not a luxury. This calculator is designed specifically for your situation: a new car purchase on an 84-month term in Quebec, with the unique credit profile of a consumer proposal (credit score 300-500).
Use the tool above to get a realistic monthly payment estimate based on data from lenders who specialize in these scenarios.
How This Calculator Works for Your Quebec Scenario
This calculator is calibrated to reflect the realities of financing a new vehicle in Quebec with a consumer proposal. Here's what each field means for you:
- Vehicle Price: The sticker price of the new car you're considering. Remember, a lower price significantly increases your approval chances.
- Down Payment: This is cash you pay upfront. For subprime loans, a down payment is powerful. It reduces the lender's risk, lowers your monthly payment, and shows financial discipline-a key factor for lenders working with proposal clients.
- Trade-in Value: The value of your current vehicle, which acts like a down payment.
The Impact of a Consumer Proposal on Your Interest Rate
With a credit score between 300-500 due to a consumer proposal, you won't qualify for the 0% or low-interest promotional rates advertised by manufacturers. Instead, you'll be working with specialized lenders. Expect an interest rate (APR) between 19.99% and 29.99%. Our calculator uses a realistic rate within this range to provide a grounded estimate, not an optimistic fantasy.
A Note on Quebec Sales Tax (GST/QST)
This calculator is set to 0% tax based on this specific page's configuration, which might apply if the vehicle price is listed as 'all-in' or if a trade-in's tax credit covers the full amount. However, please be aware that Quebec typically has a combined GST and QST of 14.975% that is applied to the vehicle's purchase price. Always confirm the final, all-in price with your dealer.
Example New Car Payments in Quebec (84-Month Term)
To give you a clear picture, here are some sample calculations for a new car loan in Quebec. These estimates assume a 24.99% APR, a common rate for this credit profile, with a $0 down payment over 84 months.
| New Vehicle Price | Loan Amount | Estimated Monthly Payment |
|---|---|---|
| $25,000 | $25,000 | ~$631 |
| $35,000 | $35,000 | ~$884 |
| $45,000 | $45,000 | ~$1,137 |
Disclaimer: These are estimates only and do not constitute a loan offer. Rates are On Approved Credit (OAC).
Your Approval Odds for a New Car Loan with a Consumer Proposal
Lenders who approve loans for clients with consumer proposals in Quebec look past the credit score. They focus on two key things: stability and ability to pay.
- Stable, Provable Income: They need to see consistent income of at least $2,200/month. This doesn't have to be a traditional T4 job. If you have non-traditional income streams, that's often acceptable. For more on this, check out our guide on how Don't Tell Your Bank: Royalty Income Just Bought Your Car, Quebec.
- Debt-to-Service Ratio (DSR): Your total monthly debt payments (including the new car loan and your proposal payment) should not exceed about 40% of your gross monthly income. The 84-month term helps keep the payment low to fit within this ratio.
- Proposal Payment History: Lenders want to see that you are making your proposal payments on time. This is the most recent evidence of your creditworthiness.
Completing a proposal is a major step toward rebuilding your financial health. If you're nearing the end of your term or have recently finished, our Get Car Loan After Debt Program Completion: 2026 Guide provides a roadmap for what comes next. Even if you're in a tricky situation, like trying to get out of a lease, options exist. Many people think a proposal makes a buyout impossible, but we've found that often Lease Buyout After Proposal: Your 'Impossible' Just Became Our 'Tuesday'.
Frequently Asked Questions
Can I really get a *new* car loan in Quebec during a consumer proposal?
Yes, absolutely. While banks will likely decline your application, specialized subprime lenders in Quebec focus on your current income and stability, not just your past credit history. They understand the purpose of a consumer proposal and are willing to finance a vehicle if you can demonstrate the ability to make the payments.
What interest rate should I expect with a 300-500 credit score in Quebec?
With an active consumer proposal and a credit score in the 300-500 range, you should realistically expect an interest rate between 19.99% and 29.99%. The exact rate will depend on your income, job stability, the vehicle you choose, and the size of your down payment.
Why is the loan term 84 months? Can I choose a shorter one?
An 84-month (7-year) term is very common in subprime auto lending. The primary reason is to lower the monthly payment, making it easier for the loan to fit within the lender's required debt-to-service ratio. While you can request a shorter term, it will increase the monthly payment and may make it harder to get approved.
Does a down payment help my approval chances with a consumer proposal?
Yes, a down payment is one of the most effective ways to improve your approval odds. It reduces the amount the lender has to finance, lowering their risk. It also demonstrates your commitment and financial capacity, which are very positive signals to a subprime lender. Even unconventional sources can sometimes be used; learn more in our article: Your EI Is Your Down Payment. (Seriously, No Cash Needed.).
The calculator shows 0% tax. Is that correct for Quebec?
This calculator page is set to 0% for specific scenarios, but it is not the standard. Normally, vehicle purchases in Quebec are subject to 5% GST and 9.975% QST, for a total of 14.975%. You should always assume taxes will be added to the final price unless the dealer explicitly states the price is 'tax-in' or you have a trade-in providing a full tax credit.
