Your 84-Month Luxury Car Loan in Yukon: A Clear Calculation
You're in a unique and advantageous position. Financing a luxury vehicle in Yukon means you benefit from 0% Provincial Sales Tax (PST) and 0% Goods and Services Tax (GST) on the purchase. This calculator is specifically calibrated for your circumstances: a fair credit score (600-700), a premium vehicle, and an extended 84-month term. Let's break down what your monthly payments could look like and what lenders consider for your approval.
How This Calculator Works
This tool is designed to provide a precise estimate based on your specific situation in Yukon. Here's how it calculates your payment:
- Vehicle Price: The starting point of your loan.
- Down Payment/Trade-In: Any amount you pay upfront, which directly reduces the principal loan amount.
- Yukon Tax Advantage (0%): Unlike other provinces, we apply $0 for PST and GST, saving you thousands immediately. A $80,000 vehicle in Ontario would cost $90,400 after 13% HST; in Yukon, it's simply $80,000.
- Interest Rate (Estimated for 600-700 Credit): We use an estimated interest rate range typical for a 600-700 credit score. This is considered 'near-prime,' and while rates are higher than for top-tier credit, they are often competitive. Expect rates from approximately 8.99% to 14.99% OAC (On Approved Credit), depending on your specific credit history and income.
- Loan Term (84 Months): We divide the total loan amount over 84 payments to give you a lower monthly figure, ideal for managing the cost of a luxury vehicle.
Approval Odds for a 600-700 Credit Score
Your approval odds are generally strong. A score in the 600-700 range shows lenders you have experience managing credit, even if there have been some bumps along the way. Lenders will focus on two key areas beyond the score:
- Income Stability: Demonstrating consistent, verifiable income is crucial, especially for a larger loan on a luxury car.
- Debt-to-Income (DTI) Ratio: Lenders want to see that your total monthly debt payments (including this new car loan) don't exceed 40-45% of your gross monthly income. For a luxury car payment, a solid income is essential. If you've recently finished a debt program, your path to approval is clearer than you might think. For more details, read our Get Car Loan After Debt Program Completion: 2026 Guide.
Example Scenarios: 84-Month Luxury Car Loans in Yukon
Here are some realistic monthly payment estimates for luxury vehicles in Yukon, assuming a 11.99% APR interest rate, which is a common mid-range for the 600-700 credit profile. Note: These are estimates for illustration purposes only. Your actual rate may vary.
| Vehicle Price (in Yukon) | Tax (GST/PST) | Total Loan Amount (No Down Payment) | Estimated Monthly Payment (84 Months @ 11.99% APR) | Total Interest Paid |
|---|---|---|---|---|
| $65,000 | $0 | $65,000 | ~$1,120 / month | ~$29,080 |
| $80,000 | $0 | $80,000 | ~$1,379 / month | ~$35,830 |
| $95,000 | $0 | $95,000 | ~$1,637 / month | ~$42,510 |
The 84-Month Term: Pros and Cons
An 84-month (7-year) loan makes luxury vehicles more accessible by lowering the monthly payment. However, it's important to understand the trade-offs:
- Pro: Significantly lower monthly payments compared to 60 or 72-month terms.
- Con: You will pay substantially more in total interest over the life of the loan.
- Risk: Higher chance of becoming 'underwater' or having negative equity, where you owe more on the loan than the car is worth. This is especially true for luxury cars which can depreciate quickly. If you find yourself in this situation down the line, options are available. Learn more in our article: Underwater Car Loan? Perfect. We'll Refinance It, Toronto!.
To mitigate this risk, consider making a larger down payment or opting for bi-weekly payments to pay down the principal faster. It's also vital to work with a reputable lender. To be sure you're getting a fair deal, it's wise to understand how to verify a lender's credentials, as explained in our How to Check Car Loan Legitimacy 2026: Canada Guide.
Frequently Asked Questions
What interest rate can I expect for a luxury car in Yukon with a 650 credit score?
With a credit score of around 650, you fall into the 'fair' or 'near-prime' category. For a new or late-model luxury vehicle, you can typically expect interest rates ranging from 8.99% to 14.99% OAC. The final rate depends on your full credit profile, income stability, and the specific vehicle you choose.
Is an 84-month car loan a bad idea for a luxury vehicle?
It's not inherently 'bad,' but it requires careful consideration. The main benefit is a lower, more manageable monthly payment. The primary drawbacks are paying more total interest and the high risk of negative equity (owing more than the car's value) due to the long loan term and the faster depreciation of luxury cars. A significant down payment can help offset this risk.
How does Yukon's 0% tax save me money on a car loan?
The 0% GST/PST in Yukon provides a massive upfront saving. On an $80,000 vehicle, you save $10,400 compared to buying in Ontario (13% HST) or $9,600 compared to BC (12% GST/PST). This entire amount is removed from your loan principal, meaning you finance less, pay less interest over the term, and have a lower monthly payment from day one.
How much income do I need to get approved for an $80,000 luxury car loan?
Lenders use a Debt-to-Income (DTI) ratio. They generally want your total monthly debt payments (including the new car loan, rent/mortgage, credit cards) to be no more than 40-45% of your gross monthly income. For a ~$1,379/month payment on an $80,000 car, a lender would likely want to see a gross annual income of at least $85,000-$100,000, assuming you have other typical monthly debts.
Can I get approved with a 600-700 score if I've had a consumer proposal in the past?
Yes, it's very possible. Lenders are more interested in your financial habits after the proposal has been completed or is in good standing. A stable job, a down payment, and a credit score that is actively being rebuilt in the 600-700 range are strong positive factors for approval. Lenders see that you have taken steps to resolve past issues.
