New Car Loan Payments in Quebec for a 24-Month Term & 600-700 Credit Score
Navigating the auto finance landscape in Quebec with a credit score between 600 and 700 places you in a unique position. You're often past the major hurdles of subprime lending but not yet in the prime category. This calculator is specifically calibrated for your situation: financing a new car in Quebec over a short 24-month term.
This tool removes the guesswork by pre-configuring the key variables: Quebec's tax rate, a realistic interest rate for your credit profile, and your chosen loan term. Use it to understand the true cost and what you can realistically afford.
How This Calculator Works
Our engine provides a data-driven estimate based on the details you've selected. Here's a breakdown of the calculation:
- Vehicle Price: The starting point of your calculation. This is the MSRP of the new car you're considering.
- Taxes (GST/QST): In Quebec, new vehicle purchases are subject to 5% GST and 9.975% QST, for a combined total of 14.975%. We automatically add this to your loan amount.
- Down Payment/Trade-in: Any amount you contribute upfront. This is subtracted from the total price after taxes, reducing the amount you need to finance.
- Estimated Interest Rate (APR): For a 600-700 credit score, lenders typically offer rates between 8% and 14%. We use a conservative estimate of 9.99% APR for our calculations, reflecting a fair-credit profile for a new vehicle.
- Loan Term: Fixed at 24 months. This aggressive term means higher payments but significant savings on total interest paid.
Approval Odds with a 600-700 Credit Score
Your approval odds are generally good in this range, but lenders will look closely at your entire financial picture. A 600-700 score signals that you are actively managing or rebuilding your credit. Lenders in Quebec will focus on two key factors:
- Income Stability: Verifiable, consistent income is crucial. Lenders want to see that you can comfortably handle the monthly payment.
- Debt-to-Service Ratio (DSR): Lenders calculate your total monthly debt payments (including the potential new car loan) and divide it by your gross monthly income. They typically want this ratio to be below 40-45%. With a short 24-month term, the high payments can quickly push this ratio up, so be mindful of the total price.
While your score is a major factor, a strong application can overcome a borderline score. To learn more about identifying trustworthy lenders, read our guide on Unmasking 'Bad Credit' Car Lenders: Red Flags You Miss, Quebec.
Example: 24-Month New Car Loan Scenarios in Quebec
The table below illustrates how a short 24-month term impacts your monthly payments for different new car prices. Notice how quickly the payment increases. (Calculations use a 9.99% APR estimate and include 14.975% Quebec tax).
| Vehicle Price (Before Tax) | Total Loan Amount (After Tax) | Estimated Monthly Payment | Total Interest Paid |
|---|---|---|---|
| $25,000 | $28,743.75 | ~$1,327 | ~$3,104 |
| $35,000 | $40,241.25 | ~$1,858 | ~$4,346 |
| $45,000 | $51,738.75 | ~$2,389 | ~$5,588 |
Disclaimer: These are estimates for illustrative purposes only. Your actual payment and interest rate will vary based on the lender's final approval (O.A.C.).
The primary challenge with a 24-month term is affordability. A payment of nearly $1,900 for a $35,000 vehicle requires a significant monthly income to keep your DSR in a healthy range. If you've recently overcome financial challenges, such as bankruptcy, it's important to understand your options. For more insight, see our article: Discharged? Your Car Loan Starts Sooner Than You're Told.
For those with non-traditional income streams, like gig work, proving income stability is key. Lenders are increasingly adapting to these profiles. Learn how your work can build your case in Your Deliveries Are Your Credit. Get the Car.
Frequently Asked Questions
What interest rate can I expect in Quebec with a 600-700 credit score?
For a new car loan, borrowers in the 600-700 credit score range can typically expect an Annual Percentage Rate (APR) between 8% and 14%. The exact rate depends on your specific credit history, income, the vehicle's value, and the lender. Our calculator uses a 9.99% APR as a realistic midpoint for this scenario.
How is sales tax calculated on a new car in Quebec?
In Quebec, you pay both the federal Goods and Services Tax (GST) at 5% and the Quebec Sales Tax (QST) at 9.975%. These are calculated on the vehicle's selling price. The total combined tax rate is 14.975%, which is automatically factored into our calculator's 'Total Loan Amount'.
Is a 24-month loan a good idea for a new car?
A 24-month loan has significant pros and cons. The main advantage is that you pay the car off very quickly and pay much less in total interest compared to a longer term. The major disadvantage is the very high monthly payment, which can strain your budget and limit the price of the car you can afford while staying within lender-required debt-to-service ratios.
Can I get approved with a 620 score and a new job?
Yes, it's possible. While a 620 score is on the lower end of this range, lenders prioritize stable, verifiable income. If you are past your probationary period at the new job and can provide pay stubs, your chances are much stronger. Lenders want to see proof of consistent earnings to offset the perceived risk of the credit score.
Do I need a down payment for a car loan in this credit range?
A down payment is not always mandatory, but it is highly recommended. For a borrower with a 600-700 score, a down payment of 10-20% does three things: it reduces the total amount financed (and your monthly payment), it lowers the lender's risk, and it shows financial discipline, all of which can lead to a better interest rate and a higher chance of approval.
