New Car Financing in Quebec with a 600-700 Credit Score
Welcome to your specialized auto finance calculator for Quebec. This tool is designed specifically for individuals with a credit score between 600 and 700, looking to finance a new vehicle over an 84-month term. A score in this range is often considered 'fair' or 'near-prime,' which means you have solid financing options available, though the interest rates will differ from those offered to prime borrowers.
This calculator will help you decode the numbers, understand your budget, and approach lenders with confidence. Let's break down how your payments are estimated and what lenders are looking for.
How This Calculator Works
Our calculator uses key data points to provide a realistic monthly payment estimate. Understanding these factors is the first step to securing a loan that fits your budget.
- Vehicle Price: The total cost of the new car you're interested in.
- Down Payment/Trade-in: Any amount you pay upfront or the value of your trade-in vehicle. This amount is subtracted directly from the vehicle price, reducing the total amount you need to finance. A larger down payment can significantly lower your monthly payments and improve your approval odds.
- Loan Term: You've selected an 84-month (7-year) term. This longer term results in lower monthly payments but means you will pay more in total interest over the life of the loan.
- Estimated Interest Rate (APR): For a 600-700 credit score in Quebec, interest rates for a new car typically range from 8.99% to 15.99%. Your exact rate depends on your specific credit history, income stability, and the lender. Our calculator uses a representative rate from this range for its estimates.
- Quebec Sales Tax (GST/QST): A critical detail for Quebec buyers. Unlike other provinces where sales tax is added to the vehicle price and financed, in Quebec, GST (5%) and QST (9.975%) are applied to your monthly loan payment. Our calculator shows you the pre-tax payment and the final payment with taxes included, so there are no surprises.
Approval Odds with a 600-700 Credit Score
With a credit score in the 600s, lenders view you as a developing borrower. Your approval odds are generally good, especially if you have stable income and a reasonable debt-to-income ratio. Many people in this credit range are actively rebuilding their financial standing, perhaps after a major life event. If you've recently completed a consumer proposal, your path to a car loan is clearer than you might think. For more details on this, see our guide on Your Consumer Proposal? We're Handing You Keys. Lenders will focus on:
- Income Verification: Proof of steady income is non-negotiable.
- Debt-to-Service Ratio (DSR): Your total monthly debt payments (including the new car loan) should ideally not exceed 40% of your gross monthly income.
- Credit History Details: Lenders will look at the 'why' behind your score. A score recovering from a past issue like a Bankruptcy Discharge: Your Car Loan's Starting Line. is often viewed more favourably than a score that's declining due to recent missed payments.
Example Scenarios: 84-Month New Car Loan in Quebec
To give you a clearer picture, here are some estimated monthly payments for a new car on an 84-month term, assuming a $3,000 down payment and an estimated APR of 12.49%.
| New Vehicle Price | Loan Amount | Est. Monthly Payment (Before Tax) | Est. Monthly GST/QST (14.975%) | Est. Total Monthly Payment |
|---|---|---|---|---|
| $30,000 | $27,000 | $487 | $73 | $560 |
| $40,000 | $37,000 | $667 | $100 | $767 |
| $50,000 | $47,000 | $848 | $127 | $975 |
Disclaimer: These are estimates for illustrative purposes only. Your actual payment will vary based on the final approved interest rate and vehicle price. OAC (On Approved Credit).
As you plan your purchase, ensuring you're working with a reputable dealer and lender is paramount. Always do your due diligence. For tips on what to look for, our guide on How to Check Car Loan Legitimacy 2026: Canada Guide provides valuable insights.
Frequently Asked Questions
What APR can I expect in Quebec with a 650 credit score for a new car?
With a credit score around 650, you're in the 'fair' credit range. For a new vehicle, you can typically expect an interest rate (APR) between 8.99% and 15.99%. The final rate will depend on your full financial profile, including income stability, employment history, and your overall debt load.
Why is an 84-month loan popular, and what are the risks?
An 84-month (7-year) term is popular because it spreads the cost of the vehicle over a longer period, resulting in a lower, more manageable monthly payment. The main risk is that you'll pay significantly more in total interest over the life of the loan. Additionally, you may be in a 'negative equity' position for longer, where you owe more on the loan than the car is worth.
How does Quebec's sales tax work on car loans?
Quebec has a unique system. Instead of capitalizing the sales tax (GST and QST) into the total loan amount, the taxes are calculated and applied to each individual monthly payment. For example, if your pre-tax payment is $500, you will pay an additional $74.88 in taxes ($500 x 14.975%) each month, for a total payment of $574.88.
Can I get approved for a new car loan if I recently finished a consumer proposal?
Yes, absolutely. Many lenders in Quebec specialize in financing for individuals who are rebuilding their credit after a consumer proposal or bankruptcy. A credit score in the 600-700 range often reflects this rebuilding phase. Lenders will want to see proof of discharge and evidence of stable income and responsible credit use since the proposal ended.
Does a large down payment significantly help with a 600-700 credit score?
Yes, a substantial down payment is one of the most powerful tools you have. For lenders, it reduces their risk because they are financing a smaller amount. For you, it lowers your monthly payments, reduces the total interest you pay, and can help you secure a better interest rate. It shows financial discipline and commitment, which is very positive for borrowers in this credit tier.
