Estimate Your 96-Month Used Car Loan in Quebec with a 600-700 Credit Score
You're in a unique position. With a credit score between 600 and 700, you're on the cusp of prime lending but might still be navigating options from specialized lenders. You're looking for a used car in Quebec and considering a 96-month term to keep payments manageable. This calculator is designed specifically for your scenario, cutting through the guesswork to give you a clear financial picture.
This tool helps you understand the numbers behind a long-term used car loan in Quebec, factoring in the specific financial landscape for someone with a fair credit profile. Let's break down what your payments could look like and what lenders are thinking.
How This Calculator Works
This calculator provides a precise estimate based on the variables you've selected. Here's what's happening behind the scenes:
- Vehicle Price: The starting point of your loan calculation.
- Down Payment/Trade-in: Any amount you put down reduces the total loan amount, lowering your monthly payment and the total interest you'll pay.
- Interest Rate (APR): For a 600-700 credit score on a 96-month term for a used vehicle, rates typically range from 9.99% to 16.99% APR (OAC). We use a realistic average for this bracket in our calculations. Your final rate depends on your specific credit history, income, and the vehicle's age and mileage.
- Loan Term: Fixed at 96 months (8 years). This extended term significantly lowers the monthly payment but increases the total interest paid over the life of the loan.
- Tax Rate (0%): This calculator assumes a private vehicle sale in Quebec, where you do not pay QST or GST on the purchase. If you buy from a dealership, you would be charged GST (5%) and QST (9.975%), which would increase the total loan amount. Financing a private sale is a powerful way to save money, and we can help. For more details, see our guide: Bad Credit? Private Sale? We're Already Writing the Cheque.
Understanding Your Approval Odds (600-700 Credit Score)
A score in the 600-700 range places you in the "fair" or "near-prime" category. This is good news. You've likely moved past major credit challenges and are rebuilding. Lenders see this as a positive sign, but they still perceive some risk, especially with a long 96-month term on a used vehicle.
- More Options Than Subprime: You have access to a wider range of lenders than someone with a score below 600.
- Income is Key: Lenders will heavily scrutinize your income stability and your debt-to-income ratio. They want to see that the monthly payment doesn't exceed 15-20% of your gross monthly income.
- Down Payment Helps: While not always required, a down payment strengthens your application significantly. It shows commitment and reduces the lender's risk. Don't have one? Don't worry. Options exist, which you can explore in our article: Your Down Payment Just Called In Sick. Get Your Car.
Example Scenarios: 96-Month Used Car Loans in Quebec
Let's look at some real numbers. The table below shows estimated monthly payments for different used vehicle prices, assuming a 12.99% APR, which is a representative rate for a 600-700 credit score on a long-term loan (OAC). This assumes a private sale with $0 tax and a $0 down payment.
| Vehicle Price (Private Sale) | Loan Amount | Estimated Monthly Payment (96 Months @ 12.99% APR) | Total Interest Paid |
|---|---|---|---|
| $15,000 | $15,000 | $251 | $9,096 |
| $25,000 | $25,000 | $418 | $15,128 |
| $35,000 | $35,000 | $585 | $21,160
*Disclaimer: These calculations are for illustrative purposes only and do not constitute a loan offer. Your actual payment and interest rate will vary based on lender approval, your credit profile, and the vehicle.
Notice how the total interest paid over 8 years is substantial. This is the trade-off for a lower monthly payment. If you've been through a credit event like a consumer proposal, managing your monthly budget is critical, making this trade-off one that many people are willing to make. For more on this, read about how Your Consumer Proposal? We Don't Judge Your Drive.
Frequently Asked Questions
Why is the tax 0% for this Quebec calculator?
This calculator is set to 0% tax to reflect a private sale scenario in Quebec. When you buy a used car from a private individual (not a dealership), you are not required to pay Quebec Sales Tax (QST) or the federal Goods and Services Tax (GST). This can result in thousands of dollars in savings. If you were to buy from a dealer, both taxes (totaling 14.975%) would apply.
What interest rate can I really expect with a 650 credit score in Quebec?
With a 650 score, for a used car on a 96-month term, you should expect interest rates between 9.99% and 16.99% (OAC). The exact rate depends on several factors: the stability of your income, your employment history, the age and mileage of the vehicle, and the specific lender's risk assessment. A newer used car might secure a lower rate than an older one with high mileage.
Is a 96-month car loan a bad idea?
It's a trade-off. The primary benefit is a significantly lower monthly payment, which can make a more reliable vehicle affordable. The downsides are substantial: you'll pay much more in total interest, and you'll be in a negative equity position (owing more than the car is worth) for a longer period. This can make it difficult to sell or trade in the vehicle in the first few years. It's best for those who plan to keep the car for the full term and need the lowest possible payment.
Can I get approved for a 96-month loan with no money down?
Yes, it is possible, especially with a credit score in the 600-700 range. Lenders will focus more on your income and ability to make the payments. However, providing a down payment of 10% or more will significantly improve your approval chances and likely secure you a better interest rate because it reduces the lender's overall risk.
How does a long-term loan affect my ability to trade in the car?
A 96-month loan increases the time you'll be in negative equity. Cars depreciate fastest in their first few years. With a long loan, your payments are smaller, so your loan balance decreases more slowly than the car's value. If you try to trade it in after 3-4 years, you might owe $15,000 on a car that's only worth $10,000. This $5,000 difference (negative equity) would need to be paid off or rolled into your next car loan, making your next purchase more expensive.
