Quebec SUV Financing: Your 96-Month Loan with a 700+ Credit Score
Welcome to your specialized auto finance calculator, tailored for purchasing an SUV in Quebec with an excellent credit profile (700+) over a 96-month term. Your strong credit history is your most powerful asset, unlocking the most competitive interest rates from prime lenders. This page will help you understand your budget, the implications of an 8-year loan, and what to expect from lenders in Quebec.
How This Calculator Works
This tool is designed for precision. Here's how to use it effectively:
- Vehicle Price: Enter the total cost of the SUV you're considering. Remember, in Quebec, this price is subject to GST (5%) and QST (9.975%). While our calculator uses a 0% tax rate for simple payment estimation, your final loan amount from the dealer will include these taxes. For example, a $40,000 SUV is actually $45,990 after tax.
- Down Payment: The amount of cash you're putting down. A larger down payment reduces your loan amount and total interest paid. It's important to understand that your first payment is not the same as a down payment. For more details, read our guide: BC Car Loan: Your First Payment Isn't a Down Payment.
- Interest Rate (APR): With a 700+ score, you qualify for prime rates. We suggest starting with a rate between 4.99% and 7.99% for a used SUV, or potentially lower for a new vehicle with manufacturer incentives.
- Trade-in Value: The value of your current vehicle, which acts like a cash down payment.
Approval Odds with a 700+ Credit Score
Your Approval Odds: Very High.
A credit score over 700 places you in the top tier of borrowers. Lenders like RBC, Desjardins, BMO, and Scotiabank will compete for your business. You can expect quick approvals and favourable terms. The main factors they will still verify are:
- Income Stability: Lenders need to see a consistent and sufficient income to cover the new payment plus existing debts. If you have non-traditional income, it's still possible to get approved. Check out our resource for more info: Self-Employed? Your Bank Account *Is* Your Proof. Get Approved.
- Debt-to-Service Ratio (DSR): Your total monthly debt payments (including the new car loan) should generally not exceed 40-45% of your gross monthly income.
Example 96-Month SUV Loan Scenarios in Quebec
A 96-month (8-year) term lowers your monthly payment, but it also means you pay more interest over the loan's life. Here are some realistic examples for popular SUV segments, assuming a 700+ credit score. (Note: These are estimates. Your actual rate may vary. Taxes are excluded from the initial price for calculation clarity).
| Vehicle Example (SUV) | Vehicle Price (Before Tax) | Interest Rate (Est.) | Down Payment | Estimated Monthly Payment | Total Interest Paid |
|---|---|---|---|---|---|
| Used Compact SUV (e.g., Hyundai Kona) | $25,000 | 6.49% | $3,000 | $294 | $6,224 |
| New Mid-Size SUV (e.g., Toyota RAV4) | $40,000 | 5.99% | $5,000 | $443 | $7,528 |
| Large Family SUV (e.g., Ford Explorer) | $55,000 | 5.49% | $7,000 | $594 | $9,024 |
Is an 8-Year Car Loan Right for You?
While the low monthly payment of a 96-month term is attractive, consider the drawbacks. You'll be paying for the vehicle for eight years, during which time it will significantly depreciate. This increases the risk of being in a "negative equity" position, where you owe more on the loan than the car is worth. Always ensure the loan offer you receive is from a reputable source. It's wise to learn How to Check Car Loan Legitimacy 2026: Canada Guide to protect yourself.
Frequently Asked Questions
What interest rate can I expect for an SUV loan in Quebec with a 700+ credit score?
With a credit score of 700 or higher, you are considered a prime borrower. In today's market, you can typically expect interest rates from major banks and manufacturer financing to range from 4.5% to 8% for a 96-month term on an SUV. New vehicles often have promotional rates that can be even lower.
Is a 96-month car loan a good idea for an SUV?
It depends on your financial goals. The main benefit of a 96-month (8-year) loan is a lower monthly payment, making a more expensive SUV affordable. However, the major drawbacks are paying significantly more interest over the life of the loan and a higher risk of negative equity (owing more than the car is worth) due to depreciation.
How are car loans taxed in Quebec?
In Quebec, you pay both the federal Goods and Services Tax (GST) of 5% and the Quebec Sales Tax (QST) of 9.975% on the vehicle's purchase price. This combined tax of 14.975% is typically added to the vehicle price and financed as part of your total loan amount.
Do I need a down payment for an SUV loan with excellent credit in Quebec?
While not always required with a 700+ credit score, a down payment is highly recommended. It reduces your monthly payment, lowers the total interest you'll pay, and helps prevent negative equity. A down payment of 10-20% is a common and financially sound practice.
Can I pay off a 96-month car loan early in Quebec?
Yes. In Quebec, consumer protection laws allow you to make extra payments or pay off your auto loan in full at any time without penalty. This is a great strategy to save on interest, especially with a long-term loan like this one.
