Your 84-Month Electric Vehicle Loan in the Yukon with a 600-700 Credit Score
You've made a smart choice. Opting for an Electric Vehicle (EV) in the Yukon not only reduces your carbon footprint but also offers significant savings, starting with the tax. With a credit score in the 600-700 range, you're in a position to secure financing, and this calculator is designed specifically for your situation-an 84-month term on an EV in a province with 0% PST.
This page will break down the numbers, explain what lenders are looking for, and show you how to leverage Yukon's tax advantage to get behind the wheel of your new EV.
How This Calculator Works for Your Scenario
This isn't a generic tool. It's calibrated for the key factors of your search:
- Vehicle Price & Down Payment: Enter the sticker price of the EV. Remember to factor in the federal iZEV rebate (up to $5,000) which can be used as a direct rebate or part of your down payment, significantly lowering the amount you need to finance.
- Interest Rate (APR): For a credit score between 600 and 700, lenders typically offer rates from 8.99% to 14.99% O.A.C. (On Approved Credit). We use a realistic average in our examples, but your final rate will depend on your specific credit history and income stability.
- Loan Term: You've selected 84 months. This longer term results in a lower, more manageable monthly payment, but it's important to note you'll pay more in total interest over the life of the loan compared to a shorter term.
- Tax Calculation (The Yukon Advantage): The calculator automatically applies the 5% federal GST. Crucially, it excludes any Provincial Sales Tax (PST) because the Yukon has none. On a $60,000 EV, this saves you over $4,000 compared to buying in a province like British Columbia.
Example EV Loan Scenarios in Yukon (84-Month Term)
Let's look at some real-world numbers. These examples assume an estimated interest rate of 11.99% and include the $5,000 federal iZEV rebate being applied to the purchase price. The total price includes 5% GST.
| Vehicle Price (MSRP) | Total Price (inc. 5% GST) | Amount Financed (After $5k Rebate) | Estimated Monthly Payment | Total Interest Paid |
|---|---|---|---|---|
| $45,000 | $47,250 | $42,250 | ~$703 | ~$16,802 |
| $60,000 | $63,000 | $58,000 | ~$965 | ~$23,060 |
| $75,000 | $78,750 | $73,750 | ~$1,227 | ~$29,318 |
Disclaimer: These are estimates for illustrative purposes only. Your actual payment and interest rate will vary based on lender approval.
Your Approval Odds with a 600-700 Credit Score
A credit score in the 600-700 range is considered 'fair' or 'near-prime'. Approval is highly likely, but lenders will look closely at two key factors to mitigate their risk:
- Income Stability: Lenders want to see a consistent and verifiable source of income. If your income is non-traditional, don't worry, options are still available. For more details on this, see our article on how Your Irregular Income Just Qualified You for an EV. Seriously, Quebec.
- Debt-to-Income Ratio: Your total monthly debt payments (including your new estimated car payment) should ideally be below 40% of your gross monthly income. A lower ratio significantly increases your chances of approval for a longer 84-month term.
While a down payment isn't always mandatory, providing one with a fair credit score can unlock better interest rates. Even if you think you're in a tough spot financially, solutions exist. Many people are surprised to learn about creative financing options, like those discussed in The Consumer Proposal Car Loan You Were Told Was Impossible. Our network of lenders specializes in finding paths to approval, even when the bank says no. If you're concerned about having cash on hand, it's worth exploring all possibilities. Some programs even allow gig work to secure a vehicle with minimal upfront cost, as highlighted in our guide: No Down Payment? Your Gig Just Bought a Hybrid. Seriously.
Frequently Asked Questions
What interest rate can I expect for an EV loan in the Yukon with a 650 credit score?
With a credit score of 650, you fall into the 'fair' credit category. For an 84-month term on a new EV, you can typically expect interest rates ranging from 8.99% to 14.99% O.A.C. The final rate depends on your overall financial profile, including income stability and existing debt.
How does the 84-month term affect my EV loan?
An 84-month (7-year) term significantly lowers your monthly payment, making a more expensive EV more affordable on a month-to-month basis. The main drawback is that you will pay more in total interest over the life of the loan compared to a shorter term like 60 or 72 months. It can also lead to being in a negative equity position for a longer period.
Is there sales tax on electric cars in the Yukon?
The Yukon does not have a Provincial Sales Tax (PST), which is a major financial advantage. You only pay the 5% federal Goods and Services Tax (GST) on the purchase of any vehicle, including an EV. This saves you thousands of dollars compared to buying in other provinces.
Can I use the federal iZEV rebate as a down payment?
Yes, absolutely. The federal Incentives for Zero-Emission Vehicles (iZEV) Program provides a rebate of up to $5,000 for eligible new vehicles. This is typically applied directly at the dealership, reducing the vehicle's selling price before taxes. This acts as an instant down payment, lowering the total amount you need to finance.
Is it harder to get an 84-month loan with a 600-700 credit score?
It can be slightly more challenging than a standard 60 or 72-month term, as lenders view longer terms as higher risk. However, with a 600-700 score, it is very achievable, especially on a new vehicle like an EV. Lenders are more willing to extend longer terms on new cars because of their slower depreciation. A stable income and a reasonable down payment will greatly improve your chances of approval.
