Yukon Used Car Financing: Your 48-Month Loan with a 600-700 Credit Score
You're in a great position. A credit score between 600 and 700 puts you in the 'near-prime' category, opening up more competitive financing options. Combined with Yukon's 0% sales tax, you can get into a quality used car for less than you might think. This calculator is designed specifically for your situation: a 48-month term on a used vehicle in YT.
How This Calculator Works for Yukon Buyers
This tool provides a clear, data-driven estimate based on the details you've selected. Here's what we factor in:
- Vehicle Price: The sticker price of the used car you're considering.
- Down Payment/Trade-in: The cash or trade-in value you're putting towards the vehicle. This reduces the total amount you need to finance.
- Credit Score (600-700): For this range, we estimate an interest rate between 8.99% and 15.99%. Your exact rate depends on your full credit history, income, and the specific vehicle.
- Loan Term (48 Months): A shorter 4-year term means you pay less interest over the life of the loan and own your car faster.
- Yukon Tax Advantage (0%): We automatically apply Yukon's 0% GST/PST. A $25,000 vehicle in Yukon costs $25,000. In a province with 13% tax, that same vehicle would cost $28,250 before financing.
Approval Odds with a 600-700 Credit Score
Your approval odds are very high. Lenders view a score in this range as a sign of financial responsibility, even if you've had minor credit challenges in the past. The main focus will be on two things: your rate and your income stability. Lenders want to see a consistent income that can comfortably support the monthly payment. They typically look for a Total Debt Service Ratio (TDSR) under 40-45%, meaning your total monthly debt payments (including the new car loan) shouldn't exceed 40-45% of your gross monthly income. Proving your income is straightforward, even if you don't have a typical T4. For more on this, see our guide on how Self-Employed? Your Bank Statement is Our 'Income Proof'.
Example Scenario: 48-Month Loan on a $25,000 Used Car in Whitehorse
Let's see how different down payments affect your monthly cost on a typical used SUV or truck in Yukon. Notice how there's no tax added to the vehicle price.
| Vehicle Price | Down Payment | Amount Financed | Est. Interest Rate | Estimated Monthly Payment (48 Mo) |
|---|---|---|---|---|
| $25,000 | $0 | $25,000 | 11.99% | ~$658/mo |
| $25,000 | $2,500 | $22,500 | 10.99% | ~$581/mo |
| $25,000 | $5,000 | $20,000 | 9.99% | ~$507/mo |
As you can see, a down payment not only lowers your monthly payment but can also help you secure a better interest rate. If a large down payment is a challenge right now, don't worry, options are available. In fact, many people get approved with zero down. Learn more in our article: Your Down Payment Just Called In Sick. Get Your Car.
Frequently Asked Questions
What interest rate can I expect in Yukon with a 600-700 credit score?
For a used car on a 48-month term, borrowers in the 600-700 credit score range can typically expect interest rates from 8.99% to 15.99%. The final rate depends on your detailed credit file, income stability, and the age and mileage of the vehicle. A higher down payment can often help secure a rate at the lower end of this range.
How does the 0% tax in Yukon affect my car loan?
The 0% GST/PST in Yukon provides a significant financial advantage. It means the price you see is the price you finance, before fees. A $20,000 vehicle in Yukon is financed at $20,000. In a province like BC (12% tax), that same vehicle would cost $22,400. This lowers your total loan amount, resulting in a smaller monthly payment and less interest paid over the 48-month term.
Is a 48-month term a good choice for a used car loan?
A 48-month (4-year) term is often an excellent choice for a used car. It creates a balance between a manageable monthly payment and paying the loan off quickly to minimize total interest costs. It also helps ensure you build equity in the vehicle faster, reducing the risk of being 'upside down' (owing more than the car is worth).
How much of a down payment do I really need for a used car with fair credit?
While a down payment is always recommended to lower your payment and improve your rate, it is not always mandatory. With a 600-700 credit score and stable income, many lenders will approve an application with $0 down. However, putting down even $500 to $2,000 can significantly strengthen your application.
My score is over 600 because I'm rebuilding after a consumer proposal. Can I still get approved?
Yes, absolutely. Lenders are more interested in your recent payment history and current financial stability than past issues. Having a score above 600 after a consumer proposal shows you are on the right track. Many lenders specialize in these situations. For more details on this specific scenario, read about how a Consumer Proposal? Good. Your Car Loan Just Got Easier.
