Used Car Loan Payments in Quebec for Fair Credit (60-Month Term)
Navigating the car loan process in Quebec with a credit score between 600 and 700 puts you in a strong position. You're often considered a 'near-prime' borrower, which means you have access to better rates than those with lower scores. This calculator is specifically designed to give you a realistic estimate for a 60-month (5-year) loan on a used vehicle, factoring in the typical lending conditions for your credit profile in Quebec.
How This Calculator Works for Your Scenario
This tool provides a data-driven estimate based on the following factors specific to your situation:
- Credit Score (600-700): For a used car in Quebec, lenders typically offer interest rates ranging from 9.99% to 15.99% APR for this credit tier. Your exact rate depends on your full credit history, income, and the vehicle's age and mileage.
- Loan Term (60 Months): A 5-year term is a popular choice for used vehicles as it balances a manageable monthly payment with paying off the car in a reasonable timeframe.
- Vehicle Type (Used): Lenders often have slightly higher interest rates for used cars compared to new ones due to depreciation. Our calculation reflects this.
- Taxes (Quebec): This calculator shows the loan principal before tax. In Quebec, the dealership will add GST (5%) and QST (9.975%) to the final vehicle price. For example, a $20,000 car would have a final price of approximately $22,995 after taxes, and this is the amount you would finance if you made no down payment.
Example Scenarios: 60-Month Used Car Loan in Quebec
To give you a clear picture, here are some common scenarios for a borrower with a fair credit score. We've used an estimated interest rate of 12.99% APR for these examples.
| Vehicle Price | Down Payment | Amount Financed | Estimated Monthly Payment |
|---|---|---|---|
| $15,000 | $1,500 | $13,500 | $308 |
| $20,000 | $2,000 | $18,000 | $410 |
| $25,000 | $2,500 | $22,500 | $513 |
| $30,000 | $3,000 | $27,000 | $615 |
Disclaimer: These are estimates for illustrative purposes only. Your actual payment will depend on the final interest rate approved by the lender (O.A.C. - On Approved Credit).
What Are Your Approval Odds with a 600-700 Credit Score?
Your approval odds are very high. With a score in this range, lenders are less concerned about *if* you'll be approved and more focused on determining the right interest rate and loan amount for you. They will primarily assess two things:
- Debt-to-Income (DTI) Ratio: Lenders want to see that your total monthly debt payments (including the new car loan) do not exceed 40-45% of your gross monthly income.
- Income Stability: Demonstrating consistent employment is key. However, even if your income stream is unconventional, options are available. For more on this, see our guide: Your Income's a Playlist, Not a Single. Get Your Car, Edmonton.
If you are in this credit range because you are rebuilding your financial standing, you are on the right track. Many Canadians secure financing after taking steps to manage their debt. For instance, if you've recently finished a debt management program, your path to a car loan is clear. Learn more about DMP Done? Your Car Loan Awaits. Canada. Similarly, financing is also very possible after a debt settlement. Explore your options in our guide to Vehicle Financing After Debt Settlement: Non-Dealer Car.
Frequently Asked Questions
What interest rate can I expect in Quebec with a 650 credit score for a used car?
With a 650 credit score in Quebec, you are typically considered a near-prime borrower. For a 60-month loan on a used car, you can generally expect an interest rate (APR) between 9.99% and 15.99%. The final rate will depend on your complete financial profile, including income stability and the specifics of the vehicle.
Does a 60-month term make sense for a used car loan?
Yes, a 60-month (5-year) term is often a good balance for a used car. It keeps monthly payments affordable while ensuring you don't pay interest for an excessively long period. For older, higher-mileage vehicles, a shorter term like 48 months might be preferable to avoid being 'upside-down' on the loan (owing more than the car is worth).
How is tax calculated on a used car in Quebec?
In Quebec, you pay both the Goods and Services Tax (GST) of 5% and the Quebec Sales Tax (QST) of 9.975% on the purchase price of the vehicle from a dealership. This total tax amount is added to the vehicle's price before your down payment is subtracted to determine the final amount to be financed.
Will I need a down payment with a 600-700 credit score in Quebec?
A down payment is not always mandatory, but it is highly recommended. With a score in the 600-700 range, providing a down payment of 10% or more strengthens your application, can help you secure a lower interest rate, and reduces your monthly payment. Some zero-down options may be available depending on the lender and your income.
Can I get approved for a car loan in Quebec if I've recently completed a consumer proposal?
Yes, getting a car loan after a consumer proposal is very possible in Quebec. Many lenders specialize in post-proposal financing. They will want to see that the proposal has been discharged and that you have started to re-establish some positive credit history, such as with a secured credit card. Having a stable income and a down payment will significantly increase your chances of approval. For more on this topic, our article What If Your Consumer Proposal *Unlocks* Your Car Loan, Ontario? provides insights that apply across Canada.
