New Car Financing in Quebec with Excellent Credit (72-Month Term)
Welcome to your specialized auto finance calculator for Quebec. You've selected options that put you in a strong borrowing position: a 700+ credit score, financing for a new vehicle, and a 72-month (6-year) term. This combination typically unlocks the most competitive interest rates from A-lenders like major banks and manufacturer financing arms.
This tool is designed to provide a clear, data-driven estimate of your monthly payments. Use it to understand how vehicle price, down payment, and trade-in value affect your budget before you visit the dealership.
How This Calculator Works
Our calculator simplifies the loan estimation process by focusing on the core variables that determine your payment. Here's a breakdown of the calculation based on your profile:
- Vehicle Price: The starting point of your loan. For new cars, this is the Manufacturer's Suggested Retail Price (MSRP) plus any options, but before taxes and fees.
- Down Payment/Trade-In: Any amount you pay upfront. A larger down payment reduces the total amount you need to borrow, lowering your monthly payment and the total interest paid.
- Loan Term: You've selected 72 months. This longer term spreads the cost out, resulting in lower monthly payments compared to shorter terms, but you will pay more in total interest over the life of the loan.
- Interest Rate (APR): With a 700+ credit score, you qualify for prime rates. We use a competitive estimated rate for our calculations, but your final rate will be determined by the lender based on your full financial profile.
- Taxes (GST/QST): Please note, this calculator is set to 0% tax to focus purely on the loan principal. In Quebec, the dealer will add GST (5%) and QST (9.975%) to the final purchase price. Be sure to account for this in your total budget.
Example New Car Payment Scenarios in Quebec (72-Month Term)
To give you a realistic idea of monthly payments, here are some examples based on popular new vehicle price points in Quebec. These estimates assume a 7.49% APR, a competitive rate for a borrower with a 700+ score on a 72-month term.
| Vehicle Price (Before Tax) | Down Payment | Loan Amount | Estimated Monthly Payment |
|---|---|---|---|
| $35,000 | $3,500 | $31,500 | $545/mo |
| $45,000 | $5,000 | $40,000 | $692/mo |
| $55,000 | $7,500 | $47,500 | $822/mo |
| $70,000 | $10,000 | $60,000 | $1,038/mo |
Disclaimer: These are estimates for illustrative purposes only. Your actual payment will vary based on the final negotiated price, interest rate (OAC), and other factors.
Your Approval Odds: Excellent
With a credit score of 700 or higher, your approval odds are excellent. Lenders view you as a low-risk borrower, which means you have significant advantages:
- Access to Prime Lenders: You'll be offered financing from Canada's major banks (RBC, BMO, Scotiabank, etc.) and the automakers' own finance companies (e.g., Ford Credit, Toyota Financial Services).
- Lowest Available Rates: You will qualify for the most competitive interest rates on the market, saving you thousands over the life of the loan.
- Flexible Terms: Lenders are more willing to offer flexible terms, including longer amortization periods like 72 months and potentially zero-down financing options.
- Higher Loan Amounts: Your strong credit profile allows you to qualify for larger loan amounts, provided your income supports the payment.
While your score is a major factor, lenders will also verify your income and calculate your Total Debt Service (TDS) ratio to ensure the new payment is affordable. Remember, as our guide explains, Your Credit Score is NOT Your Rate. Get a Fair Loan, Toronto. Income, employment stability, and overall debt load are also key parts of the final decision.
Even with excellent credit, income stability is crucial. If you've recently started a new job, lenders will want to see proof of employment. For more on this, read our article on how a Probation Period? That's Your Down Payment. Car Loan Approved, Montreal.
For those considering alternatives to buying new, such as buying out a current vehicle, the financing process is similar. You can learn more here: Your Lease Buyout Is Due. We're Buying It (For You).
Frequently Asked Questions
What interest rate can I expect in Quebec with a 700+ credit score on a new car?
With a 700+ credit score, you are considered a prime borrower. For a new car on a 72-month term, you can typically expect interest rates ranging from approximately 5.99% to 8.99% APR from A-lenders. The final rate depends on the specific lender, current promotions from the manufacturer, your income, and your overall debt-to-service ratio.
Why does this calculator show 0% tax for Quebec?
This calculator is designed to help you estimate the payment on the vehicle's principal loan amount. In Quebec, the final purchase price of a new car will include Goods and Services Tax (GST) of 5% and Quebec Sales Tax (QST) of 9.975%. These taxes are calculated on the selling price and are added to the total amount you finance. We exclude them here to provide a baseline calculation, but you must account for them in your final budget.
Is a 72-month car loan a good idea?
A 72-month (6-year) term has pros and cons. The primary benefit is a lower monthly payment, which can make a more expensive vehicle feel more affordable. The main drawbacks are paying more total interest over the loan's life and the increased risk of being in a negative equity position (owing more than the car is worth) for a longer period. With your excellent credit, you should also consider 48 or 60-month terms to see how a higher payment can save you significant interest costs.
How much of a down payment should I make on a new car with good credit?
While you may qualify for a zero-down loan with a 700+ credit score, making a down payment is always recommended. A down payment of 10-20% of the purchase price helps to reduce your monthly payments, lower the total interest paid, and protect you from negative equity. It also demonstrates financial stability to the lender, potentially securing you an even better interest rate.
Can I get approved for a car loan in Quebec if I'm new at my job?
Yes, it's very possible, especially with a strong credit score. Lenders primarily want to see stable, provable income. If you're in a probationary period, they may ask for a signed employment letter detailing your salary, position, and start date. Some lenders have specific programs for those new to the workforce or a new job, recognizing that employment changes are a normal part of life.
