Your 96-Month New Car Loan Estimate for Quebec (600-700 Credit)
Welcome to your specialized auto loan calculator, tailored for purchasing a new car in Quebec with a credit score between 600 and 700. An 8-year (96-month) term can make a new vehicle more affordable by lowering the monthly payments, and your credit score puts you in a position where lenders are ready to compete for your business. This page will help you understand the numbers, manage expectations, and plan your purchase with confidence.
How This Calculator Works
This tool is designed for simplicity and accuracy based on your specific situation. Here's a breakdown of the inputs:
- Vehicle Price: Enter the total price of the new car. For this Quebec-specific calculator, we assume this is the 'all-in' price, with taxes (GST/QST) already included, as is common with some advertised pricing.
- Down Payment: The amount of cash you're putting down upfront. A larger down payment reduces your loan amount and can improve your interest rate.
- Trade-in Value: The value of your current vehicle that you're trading in. This amount is subtracted from the total price, further reducing the amount you need to finance.
The calculator then uses these figures, combined with an estimated interest rate for your credit profile, to instantly show your estimated monthly payment over the 96-month term.
Example Scenarios: New Car, 96-Month Term, Fair Credit
With a credit score in the 600-700 range for a new vehicle on a long term, interest rates typically fall between 8.99% and 12.99%. We've used a representative rate of 9.99% for these examples. Your final rate will depend on your specific financial profile and the lender.
| Vehicle Price (Taxes In) | Down Payment | Loan Amount | Estimated Monthly Payment |
|---|---|---|---|
| $35,000 | $3,000 | $32,000 | $485 |
| $45,000 | $5,000 | $40,000 | $606 |
| $55,000 | $5,000 | $50,000 | $758 |
Your Approval Odds with a 600-700 Credit Score
A credit score in the 600-700 range is considered 'fair' or 'near-prime'. Your approval odds are high, but lenders will look closely at other factors to mitigate the risk of a long 96-month loan. They will focus on:
- Income Stability: Lenders need to see a consistent and provable source of income that can comfortably cover the new payment. Even if you're new to a job, options are available. For instance, some lenders have specific programs for those on the job, as detailed in our guide Probation Period? That's Your Down Payment. Car Loan Approved, Montreal.
- Debt-to-Income (DTI) Ratio: This is a critical metric. Lenders in Quebec want to see that your total monthly debt payments (including the new car loan) do not exceed 40-45% of your gross monthly income.
- Loan-to-Value (LTV) Ratio: For a 96-month term, lenders are cautious about lending significantly more than the car is worth. A down payment is highly recommended to show commitment and reduce the LTV.
Even if you've had past credit challenges, such as a consumer proposal, you can still get approved. Lenders are more interested in your recent payment history and current stability. Learn more about your options in our article, Your Consumer Proposal? We Don't Judge Your Drive.
Frequently Asked Questions
Is a 96-month car loan a good idea in Quebec?
A 96-month (8-year) loan can be a useful tool to lower your monthly payments and afford a reliable new vehicle. However, the main drawbacks are paying more interest over the life of the loan and the risk of being 'upside-down' (owing more than the car is worth) for a longer period due to depreciation. It's best for buyers who plan to keep their vehicle for the full term.
What interest rate can I really expect with a 650 credit score for a new car?
With a score around 650, you are on the cusp of prime and near-prime rates. For a new car on a 96-month term, you can generally expect interest rates from 8.99% to 12.99%. The final rate depends on your full credit history, income, down payment, and the specific lender's programs. Applying with a strong co-signer or a larger down payment can help secure a rate at the lower end of this range.
Will lenders approve an 8-year loan with my credit score?
Yes, many lenders in Quebec and across Canada will approve 96-month terms for borrowers with a 600-700 credit score, especially on new vehicles. The key is a strong application that demonstrates stable income and a manageable debt-to-income ratio. Lenders see new cars as lower risk, which works in your favour. It's also important to show that you can handle payments, even if your income source isn't a typical 9-to-5 job; for example, many people wonder, EI Benefits? Your Car Loan Just Got Its Paycheck. The answer is often yes, as various income types can be considered.
Why does this calculator show 0% tax for Quebec?
This calculator is configured to assume the 'Vehicle Price' you enter is the 'out-the-door' or 'all-in' price, which already includes Quebec's GST (5%) and QST (9.975%). This is a common way for dealerships to advertise pricing. By entering the final price, you get a more accurate estimate of the monthly payment on the total amount you will finance.
How can I improve my approval chances with a 600-700 score?
To strengthen your application, focus on three areas: 1) Provide a down payment of at least 10-20% to reduce the lender's risk. 2) Have proof of stable income for the last 3 months (pay stubs, bank statements). 3) Pay down any high-interest credit card debt before applying to lower your debt-to-income ratio. This shows financial discipline and makes your application much more attractive to lenders.
