Your 72-Month SUV Loan in Yukon with a Consumer Proposal
Navigating a car loan after filing a consumer proposal can feel challenging, but it's entirely achievable, especially in Yukon. This calculator is designed specifically for your situation: financing an SUV over a 72-month term with a consumer proposal on your credit file. We'll break down the numbers, explain the key factors lenders consider, and show you what's realistic.
A major advantage in Yukon is the tax situation. You only pay the 5% Goods and Services Tax (GST) on a vehicle purchase, with no Provincial Sales Tax (PST). This immediately saves you thousands compared to other provinces, making your loan more affordable from the start.
How This Calculator Works for Your Scenario
This tool provides a realistic estimate by pre-configuring several key details based on your selection:
- Province (Yukon): We automatically apply the 5% GST to the vehicle price. A $30,000 SUV will have a total financed amount of $31,500 before any down payment.
- Credit Profile (Consumer Proposal): This is the most critical factor. Lenders specializing in this area use higher interest rates to offset risk. Our calculator uses a realistic interest rate range for this profile, typically between 19.99% and 29.99%. Your final rate will depend on your specific income, job stability, and down payment.
- Vehicle Type (SUV): SUVs are a popular and practical choice. Lenders are very comfortable financing them, which works in your favour.
- Loan Term (72 Months): A 72-month (6-year) term helps lower the monthly payment, making it easier to fit into your budget. However, it's important to remember that a longer term means you'll pay more in total interest over the life of the loan.
Approval Odds: Getting a 'Yes' After a Consumer Proposal
A consumer proposal signals to lenders that you are actively working to resolve past debt. While your credit score is low, lenders who specialize in this area focus more on your current ability to pay. They want to see:
- Stable, Provable Income: Consistent pay stubs or bank statements showing at least $2,200/month are typically required.
- A Completed Proposal (or Good Standing): If your proposal is complete and discharged, your chances are excellent. If it's still active, lenders will want to see a perfect payment history with your trustee.
- A Down Payment: While not always mandatory, putting money down reduces the lender's risk and shows your commitment, significantly improving your approval odds.
Getting approved is more than just a score; it's about demonstrating stability. For a deep dive into this process, read our guide: Your Consumer Proposal? We're Handing You Keys.
Example SUV Loan Scenarios in Yukon (72-Month Term)
Let's look at some numbers for common SUV price points in Yukon. These estimates assume a 24.99% interest rate (O.A.C.) and a $0 down payment to show the maximum potential payment.
| Vehicle Price | Total Loan (with 5% GST) | Estimated Monthly Payment | Total Interest Paid |
|---|---|---|---|
| $20,000 | $21,000 | $510 | $15,720 |
| $25,000 | $26,250 | $638 | $19,650 |
| $30,000 | $31,500 | $765 | $23,580 |
Disclaimer: These are estimates only. Your actual payment and interest rate will vary based on the specific vehicle, your credit history, and the lender's final approval (O.A.C.).
This loan is a powerful tool for rebuilding your financial standing. Every on-time payment helps to re-establish a positive credit history. If you're starting from scratch, it can be helpful to understand the fundamentals. Learn more in our article, Zero Credit? Perfect. Your Canadian Car Loan Starts Here.
If you have a vehicle to trade in, it can act as your down payment. Even if you owe more on it than it's worth, there are solutions. Explore how this works in our guide on Your Negative Equity? Consider It Your Fast Pass to a New Car.
Frequently Asked Questions
Can I really get an SUV loan in Yukon during or after a consumer proposal?
Yes, absolutely. Many lenders in Canada specialize in post-proposal financing. They focus on your current income and stability rather than your past credit challenges. The key is to work with a dealership that has strong relationships with these specialized lenders.
What interest rate should I expect with a 300-500 credit score in Yukon?
With a credit score in this range due to a consumer proposal, you should anticipate a subprime interest rate. A realistic range is between 19.99% and 29.99%. While high, this rate allows you to secure a necessary vehicle and, more importantly, gives you the opportunity to rebuild your credit with consistent, on-time payments.
How does the 72-month term affect my SUV loan?
A 72-month term spreads the cost of the SUV over six years. The primary benefit is a lower, more manageable monthly payment. The downside is that you will pay more in total interest compared to a shorter term (e.g., 48 or 60 months). It's a trade-off between monthly affordability and total long-term cost.
Why is there tax on my car in Yukon if the PST is 0%?
Yukon does not have a Provincial Sales Tax (PST), which is a significant saving. However, all vehicle purchases are subject to the federal Goods and Services Tax (GST), which is 5%. Our calculator correctly adds this 5% to the vehicle's price to determine your total loan amount.
Do I need a down payment for an SUV loan after a consumer proposal?
A down payment is highly recommended but not always mandatory. Providing a down payment of $500, $1,000, or more reduces the amount you need to borrow, lowers your monthly payment, and shows the lender you have 'skin in the game'. This can significantly increase your chances of approval and may even help you secure a slightly better interest rate.
