Your 84-Month Truck Loan in Yukon with a 600-700 Credit Score
Navigating the truck financing landscape in Yukon can be straightforward, even with a credit score in the 600-700 range. This calculator is specifically designed for your situation: financing a truck over a longer 84-month term, leveraging Yukon's favourable tax environment. Here, we'll break down the numbers, explain your approval odds, and show you what to expect.
How This Calculator Works for Yukon Buyers
This tool is more than just a simple payment estimator. It's calibrated for the realities of financing a truck in Yukon with a fair credit profile.
- Vehicle Price: Enter the sticker price of the truck you're considering.
- Yukon Tax Advantage (5% GST): A major benefit of buying in Yukon is the absence of Provincial Sales Tax (PST). Only the 5% federal Goods and Services Tax (GST) applies. Our calculator automatically adds this 5% to the vehicle price to determine your total loan amount.
- Interest Rate (Credit Score: 600-700): For a credit score in this range, lenders typically offer rates from 8% to 15% on a truck loan. We use a realistic average for our estimates, but your final rate will depend on your specific credit history, income, and the vehicle's age.
- Loan Term (84 Months): You've selected a 7-year term. This longer amortization period significantly lowers your monthly payments, making a more expensive truck more affordable. However, it also means you'll pay more in total interest over the life of the loan.
- Down Payment: While not always required, a down payment reduces the amount you need to finance, lowers your monthly payment, and can improve your chances of approval. If you're struggling with a down payment, options are available. For more on this, see our guide: Your Down Payment Just Called In Sick. Get Your Car.
Example Truck Financing Scenarios in Yukon
Let's look at some real-world examples for a buyer with a 600-700 credit score, using an estimated interest rate of 10.99% over 84 months. Note how the 5% GST is applied.
| Vehicle Price | GST (5%) | Total Loan Amount | Estimated Monthly Payment |
|---|---|---|---|
| $30,000 | $1,500 | $31,500 | ~$519 |
| $40,000 | $2,000 | $42,000 | ~$693 |
| $50,000 | $2,500 | $52,500 | ~$866 |
Disclaimer: These are estimates for illustrative purposes only. Your actual payment will vary based on the final approved interest rate (OAC).
Your Approval Odds for a Truck Loan (600-700 Credit)
A credit score between 600 and 700 places you in the "fair" or "near-prime" category. Your approval odds for a truck loan are quite good, but lenders will look closely at other factors to mitigate their risk.
- Income Stability: Lenders want to see consistent, verifiable income that can comfortably support the loan payment plus your other debts. Being self-employed is not a barrier; find out more in our article Self-Employed? Your Bank Account *Is* Your Proof. Get Approved.
- Debt-to-Income (DTI) Ratio: This is crucial. Lenders typically want your total monthly debt payments (including the new truck loan) to be less than 40-45% of your gross monthly income. The 84-month term helps keep this ratio low.
- Loan-to-Value (LTV) Ratio: This compares the loan amount to the truck's actual market value. A down payment helps lower the LTV, making your application stronger.
If you've faced rejection before, don't be discouraged. Many lenders specialize in this credit range and understand that a score doesn't tell the whole story. Past challenges don't have to stop you, as we explain here: They Said 'No' After Your Proposal? We Just Said 'Drive!
Frequently Asked Questions
Can I get an 84-month truck loan in Yukon with a 650 credit score?
Yes, it's very possible. With a 650 score, you fall squarely in the 600-700 range where many lenders are comfortable offering 84-month terms, especially for newer used trucks. The long term helps keep payments affordable, which lenders see as a positive. They will also heavily weigh your income stability and existing debt load.
What interest rate should I expect for a truck loan with a 600-700 score in Yukon?
For a fair credit profile (600-700), you should anticipate an interest rate between 8% and 15% OAC. The exact rate will depend on factors like the age and mileage of the truck, the size of your down payment (if any), and your overall financial profile, including income and employment history.
Is there sales tax on vehicles in Yukon?
Yukon does not have a Provincial Sales Tax (PST), which is a significant saving compared to other provinces. However, you are still required to pay the 5% federal Goods and Services Tax (GST) on the purchase price of the vehicle. Our calculator automatically includes this 5% tax in its calculations.
Does a longer term like 84 months help or hurt my application?
It can do both. An 84-month term helps your application by lowering the monthly payment, which improves your debt-to-income ratio-a key metric for lenders. However, it hurts in the sense that you will pay significantly more interest over the life of the loan. It's a trade-off between monthly affordability and total cost.
Can I get approved for a truck loan with no money down in this credit range?
Yes, $0 down approvals are possible for applicants with a 600-700 credit score, but it's not guaranteed. Lenders may ask for a down payment to reduce their risk, especially on older or higher-mileage trucks. Having a stable income and a low debt-to-income ratio will greatly increase your chances of securing a no-down-payment loan.
