Financing an SUV in Quebec with a Consumer Proposal: Your 96-Month Loan Estimate
You're in a specific situation: you need the utility of an SUV, you're navigating a consumer proposal in Quebec, and you're looking at a 96-month term to make the payments manageable. This is more common than you think, and getting approved is absolutely possible. This calculator is designed to give you a realistic, data-driven estimate based on these exact factors.
Forget generic calculators. We account for the high-interest rates associated with a 300-500 credit score and the realities of lending in Quebec for individuals rebuilding their financial standing.
How This Calculator Works
This tool provides a transparent estimate by focusing on the variables specific to your situation. Here's the breakdown:
- Vehicle Price: The sticker price of the SUV you're considering.
- Down Payment/Trade-In: Any amount you can put down upfront. For a consumer proposal file, a down payment significantly increases approval odds.
- Interest Rate (APR): This is the most critical factor. For a consumer proposal profile (credit score 300-500), lenders typically approve rates between 15.99% and 29.99%. We use a realistic average from this range for our calculations. Your final rate will be determined by your specific income and employment stability.
- Loan Term: Fixed at 96 months to show you the lowest possible monthly payment.
- Quebec Sales Tax (GST/QST): Please note, for calculation clarity, this tool focuses on the loan principal. In Quebec, the final vehicle price will have GST (5%) and QST (9.975%) added, for a total of 14.975%. This combined amount is what you will actually finance. Always factor this in!
Your Approval Odds During a Consumer Proposal
Lenders view a consumer proposal more favourably than a bankruptcy because it shows a commitment to repaying your debts. They will focus on your future, not just your past. To get approved, they need to see:
- Stable, Provable Income: At least $2,200/month is a typical minimum threshold. Lenders need confidence you can handle the new payment.
- Trustee Approval: If your proposal is still active, your Licensed Insolvency Trustee will likely need to approve the new loan. This is a standard step.
- A Reasonable Down Payment: Putting money down reduces the lender's risk and demonstrates your own financial commitment. Even $500 to $1,000 can make a major difference.
Getting a car loan is one of the most effective ways to rebuild your credit score post-proposal. For an in-depth look at how this works, read our guide: Your Consumer Proposal? We're Handing You Keys.
Example 96-Month SUV Loan Scenarios in Quebec
Here are some realistic estimates for used SUVs. Note how the Quebec sales tax (GST/QST) is added to the vehicle price to create the total amount financed. These examples use an estimated interest rate of 22.99%, a common rate for this credit profile.
| SUV Sticker Price | Total Financed (w/ 14.975% Tax) | Estimated Monthly Payment (96 mo @ 22.99%) |
|---|---|---|
| $20,000 | $22,995 | ~$525/month |
| $25,000 | $28,744 | ~$656/month |
| $30,000 | $34,493 | ~$787/month |
Disclaimer: These are estimates for illustrative purposes only. Your actual payment will vary based on the final approved interest rate (OAC) and vehicle price.
The Path to Your Next Vehicle
A consumer proposal isn't a permanent barrier to getting the vehicle you need. It's a stepping stone. Once you're making regular payments on a new auto loan, you'll see your credit score begin to recover, opening up better financing options in the future. The journey to a prime credit score starts with a single, manageable step. To understand the timeline, see our article on how Discharged? Your Car Loan Starts Sooner Than You're Told.
Even if you've been told 'no' by other banks or dealerships, don't be discouraged. We specialize in complex credit situations. As we often say, Why 'Denied Everywhere' Is Our Favourite Challenge, Vancouver.
Frequently Asked Questions
Can I really get an SUV loan in Quebec during a consumer proposal?
Yes, absolutely. Lenders who specialize in this area will evaluate your application based on your current income stability, your ability to afford the payment, and whether you have a down payment. If your proposal is active, you will also need permission from your trustee, which is a standard procedure.
What interest rate should I expect with a 300-500 credit score in Quebec?
For a consumer proposal profile, you should realistically expect an interest rate (APR) between 15.99% and 29.99%. The exact rate depends on factors like your income, time at your job, and the size of your down payment. A higher down payment can sometimes help secure a more favourable rate.
Is a 96-month loan a good idea for an SUV?
A 96-month term is a tool for affordability. Its main advantage is creating the lowest possible monthly payment. The disadvantage is that you will pay much more in total interest over the life of the loan and the vehicle will be in a negative equity position (you owe more than it's worth) for a longer period. It's a trade-off to get you into a reliable vehicle while rebuilding your credit.
Do I need a down payment to get approved?
While some lenders may offer $0 down options, a down payment is highly recommended when you're in a consumer proposal. It significantly increases your chances of approval because it lowers the lender's risk and shows them you are financially invested in the purchase. Even a small amount helps.
How does Quebec's sales tax (QST/GST) affect my auto loan?
The advertised price of a vehicle is before tax. In Quebec, dealerships will add the Goods and Services Tax (GST) of 5% and the Quebec Sales Tax (QST) of 9.975% to the price. The total amount, including these taxes, is what gets financed. For example, a $25,000 SUV becomes approximately $28,744 that you need to secure a loan for.
