Your 12-Month Commercial Van Loan in New Brunswick: A Consumer Proposal Plan
You're in a unique situation: you need a commercial van for your business in New Brunswick, you're navigating a consumer proposal, and you're aiming for an aggressive 12-month loan term. This is a bold strategy to rebuild your credit quickly, but it requires a clear understanding of the numbers. This calculator is designed specifically for your scenario, factoring in the 15% NB HST and the realities of subprime commercial lending.
While a consumer proposal places you in a high-risk category (credit scores typically 300-500), securing a vehicle essential for your livelihood is possible. Lenders will focus less on the score and more on the stability and amount of your business income, the quality of the vehicle, and the size of your down payment.
How This Calculator Works for Your NB Scenario
Our tool provides a data-driven estimate based on the variables specific to your situation. Here's the breakdown:
- Vehicle Price: The sticker price of the commercial van you need.
- Down Payment/Trade-in: In a consumer proposal, a significant down payment (10-20% or more) drastically increases approval odds. It reduces the lender's risk and shows your commitment.
- New Brunswick HST (15%): We automatically add the 15% Harmonized Sales Tax to the vehicle price. On a $25,000 van, that's an extra $3,750 you need to finance.
- Interest Rate (APR): For a consumer proposal profile seeking a commercial loan, rates are typically in the 25% to 39.99% range. We use a realistic estimate within this bracket. The final rate depends on your specific income and vehicle details. For guidance on navigating post-debt program financing, our Get Car Loan After Debt Program Completion: 2026 Guide offers valuable insights.
- 12-Month Term: This short term means high payments but minimizes total interest paid and helps rebuild your credit score faster.
Approval Odds: High but Conditional
Your approval odds are higher than you might think, but they are conditional. Lenders specializing in this space understand that a work vehicle is an asset that generates income. They will prioritize:
- Verifiable Income: Since you're likely self-employed, be prepared with 3-6 months of business bank statements to prove consistent revenue. Lenders need to see you can comfortably afford the high monthly payment of a 12-month term. For business owners, bank statements are everything; learn more in our article, Bank Statements: The Only Resume Your Car Loan Needs. Drive, Alberta!
- Reasonable Loan Amount: Lenders will be hesitant to finance an expensive, brand-new van. A reliable, used work van under $30,000 is a more realistic target.
- Significant Down Payment: This is the most powerful tool you have. It directly lowers the amount financed and shows the lender you have skin in the game.
Example Scenarios: The Reality of a 12-Month Term in NB
A 12-month term results in substantial monthly payments. It's crucial to see the numbers. The table below uses an estimated interest rate of 29.99% to illustrate the costs. Notice the comparison with a 60-month term to see the trade-off between payment size and loan duration.
| Vehicle Price | Total with 15% NB HST | Loan Term | Estimated Monthly Payment* | Total Interest Paid |
|---|---|---|---|---|
| $15,000 | $17,250 | 12 Months | ~$1,680 | ~$2,910 |
| $20,000 | $23,000 | 12 Months | ~$2,240 | ~$3,880 |
| $25,000 | $28,750 | 12 Months | ~$2,800 | ~$4,850 |
| $25,000 (Comparison) | $28,750 | 60 Months | ~$845 | ~$21,950 |
*Estimates are for illustrative purposes only and are not a guarantee of credit. OAC.
As you can see, the monthly payment for a 12-month term is significant and requires a very strong, provable business income. For those with fluctuating income streams, understanding how lenders view this is key. Check out our guide on Variable Income Auto Loan 2026: Your Yes Starts Here.
Frequently Asked Questions
Why is the interest rate so high with a consumer proposal?
A consumer proposal is an agreement to pay back a portion of your unsecured debt. While it's a responsible step, it signals to lenders a past difficulty in managing credit. To offset the higher perceived risk of lending to someone who has recently restructured their debts, lenders charge higher interest rates. The rate reflects the risk they are taking on.
Can I get a commercial van loan with no money down in a consumer proposal?
It is extremely unlikely. For a high-risk profile like a consumer proposal, lenders almost always require a down payment. A down payment reduces the loan-to-value ratio, lowers the lender's potential loss if you default, and demonstrates your financial ability to save and invest in the purchase. Aim for at least 10-20% down.
How does the 15% HST in New Brunswick affect my loan?
The 15% HST is calculated on the vehicle's selling price and is added to the total amount you finance. For example, a $20,000 van becomes a $23,000 loan before any other fees. This increases your monthly payment and the total interest you'll pay over the life of the loan. As a business owner, you may be able to claim this HST back as an Input Tax Credit (ITC), but you still need to finance it upfront.
Is a 12-month term realistic for a commercial van loan after a consumer proposal?
It's ambitious but possible under specific conditions. You would need a very high and stable verifiable income to meet the lender's debt service ratio requirements with such a large monthly payment. While it's great for credit rebuilding, most lenders will encourage a longer term (e.g., 48-72 months) to create a more manageable payment, which improves the likelihood of successful repayment.
What documents will I need to prove my income for a commercial van?
Since you are likely self-employed or a business owner, a standard pay stub won't suffice. Lenders will typically ask for a combination of the following: 3 to 6 months of complete business bank statements showing consistent deposits, your most recent Notice of Assessment (NOA) from the CRA, and possibly articles of incorporation or your business license.
