New Car Financing in Quebec with a 600-700 Credit Score
Navigating the car loan market in Quebec with a credit score between 600 and 700 places you in a unique position. You're not considered a high-risk borrower, but you may not qualify for the prime rates advertised by manufacturers. This calculator is designed specifically for your situation: financing a new car over a 72-month term in Quebec.
This tool helps you understand the numbers before you step into a dealership, providing a realistic estimate of your monthly payments and total costs based on data from lenders who work with clients in your credit range.
How This Calculator Works
Our engine provides a data-driven estimate by focusing on the key variables for your scenario:
- Vehicle Price: The sticker price of the new car you're considering.
- Down Payment/Trade-in: The amount of cash you're putting down or the value of your trade-in. This reduces the total amount you need to finance.
- Estimated Interest Rate: For a 600-700 credit score on a new vehicle, rates typically range from 8% to 15%. We use a realistic mid-point for this calculation, but your final rate will depend on your specific credit history and the lender.
- Quebec Sales Tax (GST/QST): Unlike other provinces, Quebec calculates tax in two steps. We automatically apply the 5% GST to the vehicle price, and then the 9.975% QST to that new total. This precise calculation (totaling 14.975%) is built-in to give you an accurate total loan amount.
- Loan Term: Fixed at 72 months to show you the payment for this specific long-term financing option.
Example Scenarios: 72-Month New Car Loan in Quebec
Here are some realistic monthly payment estimates for a borrower with a 600-700 credit score, assuming an estimated interest rate of 11.99% and a $2,000 down payment. All figures include the 14.975% Quebec sales tax.
| Vehicle Price (Before Tax) | Total Financed Amount (After Tax & Down Payment) | Estimated Monthly Payment |
|---|---|---|
| $30,000 | $32,482 | $617 |
| $40,000 | $43,976 | $836 |
| $50,000 | $55,470 | $1,054 |
Disclaimer: These are estimates for illustrative purposes only. Your actual payment and interest rate will vary based on the lender's final approval (OAC).
Your Approval Odds with a 600-700 Credit Score
Your approval odds are generally high in this scenario. Lenders view a 600-700 score as a sign of a responsible borrower who may have had some past credit challenges. Here's what works in your favour:
- New Vehicle: Lenders prefer financing new cars because they have a predictable value and lower risk of mechanical failure.
- Fair Credit, Not Bad Credit: You are not in the subprime category, which opens up more lending options beyond specialized 'bad credit' lenders.
- Longer Term: A 72-month term lowers the monthly payment, making it easier to fit within a lender's debt-to-income ratio requirements.
The primary factor will be the interest rate offered. It's crucial to understand the difference between legitimate lenders and those who might take advantage of your credit score. To learn more about identifying potential issues, it's wise to read up on Unmasking 'Bad Credit' Car Lenders: Red Flags You Miss, Quebec.
If you've had a recent consumer proposal, your score might be in this range, but you still have strong options. Many people are surprised to learn that financing is possible; you can explore this further in our guide on The Consumer Proposal Car Loan You Were Told Was Impossible.
For those who are self-employed, a fair credit score can sometimes be a result of non-traditional income reporting. Banks may struggle with this, but specialized lenders are much more flexible. Learn about how this works in our article, Self-Employed? Your Income Verification Just Got Fired.
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 interest rates between 8% and 15%. The final rate depends on your detailed credit report, income stability, and the specific lender. A down payment can often help secure a rate at the lower end of this range.
How is sales tax calculated on a new car in Quebec?
Quebec has a two-part sales tax system. First, the federal Goods and Services Tax (GST) of 5% is applied to the vehicle's selling price. Then, the Quebec Sales Tax (QST) of 9.975% is applied to the subtotal (selling price + GST). This results in an effective total tax rate of 14.975%.
Is a 72-month loan a good idea for a new car?
A 72-month (6-year) loan can be a good tool to achieve an affordable monthly payment. The main advantage is lowering the payment to fit your budget. The disadvantage is that you will pay more in total interest over the life of the loan compared to a shorter term. It's a trade-off between monthly affordability and total cost.
Will making a larger down payment help my approval with a 650 credit score?
Yes, absolutely. A significant down payment (10% or more) reduces the lender's risk because it lowers the loan-to-value (LTV) ratio. This shows financial commitment and can lead to better interest rates and a higher chance of approval, even with a credit score in the 600-700 range.
Can I get approved for a car loan in Quebec if my bank said no?
Yes. Traditional banks often have very strict, automated lending criteria that may decline applications with scores under 700. We work with a network of lenders, including credit unions and financial institutions that specialize in auto loans for clients with fair credit. They often evaluate the entire financial picture, not just the score.
