Used Car Financing in Quebec: Your 72-Month Loan with a 600-700 Credit Score
Navigating the auto loan process in Quebec with a credit score in the 600-700 range can feel uncertain, but you're in a solid position. This score is often considered 'fair' or 'building' credit, opening up several financing options, especially for used vehicles. This calculator is specifically designed to give you a realistic estimate for a 72-month term, factoring in the unique financial landscape of Quebec.
A 72-month (6-year) loan is a popular choice for lowering monthly payments, making a wider range of quality used cars more accessible. Let's break down the numbers so you can plan your purchase with confidence.
How This Calculator Works for Your Scenario
This tool isn't just a generic calculator; it's calibrated for your specific situation. Here's what it considers:
- Vehicle Price: The sticker price of the used car you're interested in.
- Down Payment/Trade-in: The amount you contribute upfront. With a 600-700 credit score, a down payment of 10-20% can significantly improve your interest rate and approval odds.
- Quebec Sales Tax (QST/GST): A critical factor. Our calculator automatically adds the combined Quebec Sales Tax (QST) and Goods and Services Tax (GST) of 14.975% to the vehicle price. This is the total amount you will be financing, ensuring there are no surprises.
- Estimated Interest Rate: For a 600-700 credit score on a used vehicle, rates typically range from 8.99% to 15.99% OAC. Lenders will look at your full credit history, income stability, and the vehicle's age to determine your final rate.
- Loan Term: Locked at 72 months to show you exactly how this longer term impacts your payments.
Your Approval Odds with a 600-700 Credit Score
With a score in this range, lenders see you as a responsible borrower who may have had some credit challenges in the past. Your approval odds are generally good, but lenders will focus on two key areas: income verification and your overall debt-to-income ratio.
They want to see a stable, provable income that can comfortably support the new car payment alongside your existing obligations (rent/mortgage, other loans, etc.). If you have a unique income situation, such as being self-employed, don't worry. For more details on this, check out our guide on Self-Employed? Your Bank Doesn't Need a Resume.. Many lenders specialize in these scenarios. Additionally, if your credit history includes a past credit event, it's often not a barrier to approval. Many Quebecers find financing even after challenges, as explained in our article Your Consumer Proposal? We Don't Judge Your Drive.
Example Scenarios: 72-Month Used Car Loan in Quebec
Here are some data-driven examples to illustrate potential monthly payments. We've used an average interest rate of 11.99% for this credit profile.
| Vehicle Price | Price with QST/GST (14.975%) | Down Payment | Total Financed | Estimated Monthly Payment (72 mo @ 11.99%) |
|---|---|---|---|---|
| $15,000 | $17,246 | $1,500 | $15,746 | ~$299 |
| $20,000 | $22,995 | $2,000 | $20,995 | ~$399 |
| $25,000 | $28,744 | $2,500 | $26,244 | ~$499 |
Disclaimer: These calculations are for illustrative purposes only. Your actual interest rate and monthly payment will depend on your specific credit profile and the lender's final approval (OAC).
While a 72-month term provides an affordable payment, it's wise to consider paying extra when possible to reduce the total interest paid. Over time, you may also be able to improve your credit and qualify for a better rate. To learn more about this strategy, read our guide on Approval Secrets: How to Refinance Your Canadian Car Loan with Bad Credit.
Frequently Asked Questions
What interest rate can I expect in Quebec with a 650 credit score?
With a credit score of around 650, you can typically expect an interest rate ranging from 8.99% to 15.99% for a used car on a 72-month term. The final rate will depend on factors like your income stability, employment history, the age and mileage of the vehicle, and the size of your down payment.
How is sales tax calculated on a used car in Quebec?
In Quebec, you pay both the federal Goods and Services Tax (GST) of 5% and the provincial Quebec Sales Tax (QST) of 9.975%. These are applied to the sale price of the vehicle for a combined total of 14.975%. This tax amount is typically added to the vehicle price and included in your total loan amount.
Is a 72-month loan a good idea for a used car?
A 72-month loan can be a strategic choice. The primary benefit is a lower, more manageable monthly payment. However, the downside is that you will pay more in total interest over the life of the loan. It's also important to consider that you may have negative equity (owe more than the car is worth) for a longer period.
Will a down payment help my approval with a 600-700 credit score?
Absolutely. A down payment is one of the most powerful tools you have. It reduces the lender's risk, which can lead to a higher chance of approval and a lower interest rate. For a 600-700 score, aiming for a down payment of at least 10% of the vehicle's price is highly recommended.
Can I get approved for a car loan in Quebec if I have a discharged bankruptcy or consumer proposal?
Yes, many people secure auto financing after a discharged bankruptcy or completed consumer proposal. Lenders specializing in these situations focus more on your current income and financial stability rather than just your past credit history. Having re-established some credit and showing a stable income are key to getting approved.
