84-Month SUV Loan Calculator for Albertans with a Consumer Proposal
A consumer proposal is a strategic step toward financial recovery, not a roadblock. If you're in Alberta, need the utility of an SUV, and are looking for a manageable monthly payment, you've landed in the right place. This calculator is specifically designed for your situation: financing a reliable SUV over an 84-month term while navigating a consumer proposal. The best part? In Alberta, you only pay the 5% GST, saving you thousands compared to other provinces.
Many believe financing is out of reach during this period, but that's a common misconception. For a deeper dive, explore our guide on The Consumer Proposal Car Loan You Were Told Was Impossible.
How This Calculator Works for Your Situation
This tool is calibrated for the realities of financing with a consumer proposal in Alberta. Here's what the numbers mean:
- Vehicle Price: The sticker price of the SUV you're considering. Remember to factor in dealership fees, but you won't need to add Provincial Sales Tax (PST).
- Down Payment: Crucial for subprime loans. A down payment reduces the amount you need to borrow, lowers your monthly payment, and significantly increases your approval chances by showing lenders you have 'skin in the game'.
- Trade-in Value: The amount a dealer offers for your current vehicle. This acts like a down payment, directly reducing the loan principal.
- Estimated Interest Rate: For a consumer proposal profile (credit score 300-500), rates typically range from 18% to 29.99%. We use a realistic average in our calculations, but your final rate will depend on your specific financial picture.
The Alberta Advantage: Zero Provincial Tax
Living in Alberta gives you a significant financial edge. You only pay the 5% federal GST on a vehicle purchase. Let's see how this impacts a $30,000 SUV compared to a province with PST:
- In Alberta (5% GST): $30,000 + $1,500 (GST) = $31,500 total
- In Ontario (13% HST): $30,000 + $3,900 (HST) = $33,900 total
That's a $2,400 savings upfront, which means a smaller loan and lower monthly payments right from the start.
Example SUV Loan Scenarios (84-Month Term, Consumer Proposal)
Let's look at some real-world numbers. We'll assume a $2,500 down payment and a representative interest rate of 22.9% for this credit profile.
| Vehicle Price (before tax) | Amount to Finance (after GST & Down Payment) | Estimated Monthly Payment | Total Interest Paid |
|---|---|---|---|
| $25,000 (e.g., used Hyundai Kona, Kia Seltos) | $23,750 | ~$520/month | ~$19,930 |
| $35,000 (e.g., used Toyota RAV4, Ford Escape) | $34,250 | ~$749/month | ~$28,666 |
| $45,000 (e.g., used Ford Explorer, Kia Telluride) | $44,750 | ~$979/month | ~$37,486 |
*Payments are estimates. Your actual payment will vary based on the final approved interest rate and loan terms.
Understanding the 84-Month Term
An 84-month (7-year) term is a popular choice for lowering monthly payments, making a more reliable or larger SUV accessible. However, it's a trade-off. While the monthly cost is lower, you will pay significantly more in interest over the life of the loan. This extended term also increases the risk of owing more than the vehicle is worth, known as negative equity. If you're concerned about this, it's wise to learn how to Ditch Negative Equity Car Loan | 2026 Canada Guide.
Your Approval Odds with a Consumer Proposal
Getting approved is more about your current stability than your past credit challenges. Lenders who specialize in this area focus on the big picture. They understand that a consumer proposal is a responsible step. In fact, for many lenders, your credit score is not the most important factor. Our article Alberta Car Loan: What if Your Credit Score Doesn't Matter? explains this in detail.
Key factors for approval:
- Stable, Provable Income: At least $2,200/month is a typical minimum. Pay stubs, bank statements, or a letter of employment are essential.
- Debt Service Ratio: Lenders want to see that your total monthly debt payments (including the new car loan) don't exceed about 40% of your gross monthly income.
- Down Payment: As mentioned, this is one of the strongest signals you can send to a lender.
- Proposal Status: Lenders will want to see consistent payments being made on your proposal. Some may require the proposal to be fully discharged, while others will lend during the proposal.
Frequently Asked Questions
Can I get an SUV loan while I'm still in a consumer proposal in Alberta?
Yes, it is possible. While some lenders prefer you to have completed your proposal, many specialized lenders in Alberta will approve financing for individuals actively paying into one. They will focus more on your income stability, down payment, and the story behind your financial situation rather than just the credit score.
What is a realistic interest rate for an 84-month SUV loan with a consumer proposal?
For a consumer proposal profile with a credit score between 300-500, you should expect subprime interest rates. These typically range from 18% to 29.99%. The final rate depends on your income, job stability, down payment size, and the specific vehicle you choose.
How does the 0% PST in Alberta help my auto loan?
The 0% Provincial Sales Tax (PST) is a major advantage. On a $30,000 SUV, this saves you thousands in taxes compared to other provinces. This directly reduces the total amount you need to finance, resulting in a lower principal, smaller monthly payments, and less interest paid over the 84-month term.
Is an 84-month loan a good idea for rebuilding credit after a consumer proposal?
It can be, with caution. Making consistent, on-time payments for 84 months will have a very positive impact on your credit report. However, the long term means you pay more interest and carry the debt longer. A good strategy is to take the 84-month term for the lower payment, but make extra payments whenever possible to pay it off faster and save on interest.
Do I absolutely need a down payment for an SUV loan with a consumer proposal?
While some $0 down options may exist, a down payment is highly recommended and often required for a consumer proposal loan. It lowers the lender's risk, which can help you secure a better interest rate and a higher chance of approval. Even $1,000 to $2,500 can make a significant difference.
