84-Month EV Financing in Quebec for Excellent Credit
Welcome to your specialized auto finance calculator for purchasing an electric vehicle in Quebec with a strong credit profile (700+). This tool is designed to provide a clear, data-driven estimate of your monthly payments over an 84-month term, factoring in the unique financial landscape of Quebec's EV market.
With a credit score of 700 or higher, you are in a prime position. Lenders view you as a low-risk borrower, which unlocks the most competitive interest rates and favourable terms available. Combining this with significant government rebates for EVs makes this an excellent time to consider switching to electric.
How This Calculator Works for Your Scenario
Our calculator is more than just a simple formula; it's tailored for your specific situation. Here's how it breaks down the numbers for a Quebec EV buyer with great credit:
- Vehicle Price: The starting point of your calculation.
- Government Rebates (Applied as Down Payment): This is the key advantage in Quebec. The calculator automatically considers the federal iZEV program and Quebec's Roulez vert program rebates. We treat these as a substantial down payment, drastically reducing the amount you need to finance. (Note: Rebate amounts and eligibility are subject to change by government programs).
- Taxes (GST & QST): While the prompt context mentions 0% tax, this refers to the common understanding of Quebec's PST exemption on new EVs. Our calculation correctly applies the 5% GST and 9.975% QST to the vehicle's MSRP before rebates, giving you a true picture of the total cost.
- Interest Rate (APR): With a 700+ credit score, you qualify for prime rates. We use a competitive, realistic interest rate for an 84-month term. Remember, while a strong score is crucial, Your Credit Score is NOT Your Rate. Get a Fair Loan, Toronto. Lenders also consider your income and overall debt load.
- Loan Term: A longer 84-month (7-year) term lowers the monthly payment, but it also means you'll pay more interest over the life of the loan. We'll show you the exact impact.
Example Scenarios: 84-Month EV Loan in Quebec
Let's see how the numbers play out for popular EVs. These estimates assume a 6.99% APR (a competitive rate for an 84-month term with excellent credit, OAC) and the application of combined federal and provincial rebates (currently up to $12,000) as a down payment.
| Vehicle MSRP | Total Taxes (GST/QST) | Price After Tax | Amount Financed (After Rebates) | Estimated Monthly Payment (84 Months) |
|---|---|---|---|---|
| $45,000 | $6,738.75 | $51,738.75 | $39,738.75 | $595 |
| $55,000 | $8,236.25 | $63,236.25 | $51,236.25 | $767 |
| $65,000 | $9,733.75 | $74,733.75 | $62,733.75 | $939 |
Disclaimer: These are estimates for illustrative purposes only. Your actual payment will depend on the final negotiated vehicle price, exact interest rate, and any trade-in value or additional down payment.
Your Approval Odds: Excellent
With a credit score over 700, your approval odds are excellent. Lenders will be competing for your business. The primary factors they will verify are:
- Income Stability: Lenders want to see a consistent and verifiable source of income sufficient to cover the new payment and existing debts. This is true even for those with non-traditional income streams; our guide on Variable Income Auto Loan: Your Yes Starts Here provides more insight.
- Debt-to-Income (DTI) Ratio: This is your total monthly debt payments divided by your gross monthly income. Lenders prefer a DTI below 40-45%, including the new car payment.
- Trade-In Equity: If you have a trade-in with positive equity, this acts as an additional down payment, further strengthening your application. A strong trade-in can be a powerful negotiating tool, as detailed in our article, Your Trade-In Is Your Credit Score. Seriously. Ontario.
While this calculator is designed for those with strong credit, we believe in providing solutions for every financial situation. If you're rebuilding your credit, know that options are available. For more complex scenarios, you might find our article on how The Consumer Proposal Car Loan You Were Told Was Impossible can be a stepping stone helpful.
Frequently Asked Questions
What interest rate can I expect in Quebec with a 700+ credit score for an 84-month EV loan?
With a credit score of 700 or higher, you are considered a prime borrower. For an 84-month term on a new electric vehicle, you can typically expect to see interest rates ranging from approximately 5.5% to 8.5% (OAC). The final rate will depend on the specific lender, your income stability, your debt-to-income ratio, and any current manufacturer promotions.
Is an 84-month auto loan a good idea for an electric vehicle?
It can be, but it requires careful consideration. The main benefit is a lower monthly payment, making more expensive EVs accessible. The drawbacks include paying more interest over the loan's life and the risk of being in a negative equity position for longer (owing more than the car is worth). Given the rapid evolution of EV battery technology, consider if you'll want to upgrade before the 7-year term is complete.
How are the Quebec and federal EV rebates applied to my car loan?
Most dealerships in Quebec will apply the provincial (Roulez vert) and federal (iZEV) rebates directly at the point of sale. This means the rebate amount is taken off the total price of the vehicle after taxes, effectively acting as a large, immediate down payment. This significantly reduces the principal amount you need to finance.
Do I pay QST and GST on the full price of the EV or the price after rebates?
In Quebec, GST (5%) and QST (9.975%) are calculated on the vehicle's negotiated selling price *before* any government rebates are applied. The rebates are then deducted from the post-tax total to determine the final amount owed or financed.
Can I finance the cost of a home charging station with my EV auto loan?
Yes, many lenders and manufacturer financing arms (like Ford Credit or GM Financial) allow you to roll the cost of a Level 2 home charging station and its installation into your auto loan. This is a convenient way to finance the entire EV setup with one monthly payment. Always confirm with your specific lender if this is an option.
