84-Month Luxury Car Financing with 700+ Credit in Quebec
You're in an enviable position. With a credit score over 700, you are considered a prime borrower in Quebec, giving you access to the best interest rates and terms available for a luxury vehicle. This calculator is specifically calibrated for your scenario: an 84-month term on a high-end car, leveraging your excellent credit profile.
How This Calculator Works for Your Scenario
This tool estimates your monthly payments by factoring in the unique variables of your situation:
- Vehicle Price: The negotiated price of your luxury car before taxes.
- Down Payment/Trade-in: The amount you're putting down to reduce the loan principal. With a 700+ score, a large down payment isn't always required, but it is highly recommended on an 84-month term to mitigate depreciation.
- Interest Rate (APR): We pre-populate this with a competitive prime rate typical for borrowers with a 700+ score. This is an estimate; your final rate from a lender like a major bank or the manufacturer's financing arm (e.g., BMW Financial Services) may be even lower.
- Loan Term: Fixed at 84 months to show the impact of a longer amortization period on both your monthly payment and total interest cost.
Important Note on Quebec Taxes (GST/QST): This calculator uses a 0% tax rate for initial calculations. However, in Quebec, you must pay GST (5%) and QST (9.975%) on the vehicle's purchase price. For example, an $80,000 vehicle will have a final, taxable price of approximately $91,980. Always factor this into your total loan amount.
Your Approval Odds: Excellent
With a 700+ credit score, you are a top-tier applicant. Lenders see you as very low risk. Approval is highly likely, provided your income can support the payment. Lenders will look at your Total Debt Service Ratio (TDSR), ensuring your total monthly debt obligations (including this new car loan) do not exceed 40-45% of your gross monthly income. For those with non-traditional income streams, such as consultants or sales professionals, understanding how lenders view your earnings is key. For more insight, see our guide on Variable Income Auto Loan 2026: Your Yes Starts Here.
Example Scenarios: 84-Month Luxury Car Payments in Quebec
The table below illustrates potential monthly payments and total interest costs for an 84-month term, assuming a competitive prime APR of 6.99%. (Note: These are estimates for illustrative purposes. OAC. Rates are subject to change.)
| Vehicle Price (Before Tax) | Estimated Prime APR | Loan Amount (After $10k Down) | Estimated Monthly Payment | Total Interest Paid |
|---|---|---|---|---|
| $60,000 | 6.99% | $50,000 | $755 | $13,420 |
| $80,000 | 6.99% | $70,000 | $1,057 | $18,788 |
| $100,000 | 6.99% | $90,000 | $1,359 | $24,156 |
The 84-Month Term: A Double-Edged Sword
While an 84-month (7-year) term lowers your monthly payment, it's crucial to understand the trade-offs, especially with a luxury vehicle that depreciates quickly.
- Benefit: Makes a higher-priced vehicle more affordable on a month-to-month basis.
- Risk: You will pay significantly more in interest over the life of the loan, as shown in the table above.
- Risk: You are at a high risk of being in a negative equity position (or "underwater"), where you owe more than the car is worth for a longer period. This can be problematic if you need to sell or trade the vehicle unexpectedly.
Your excellent credit score also makes you a prime candidate for other financing strategies. For instance, many luxury car owners who previously leased may find financing the residual value is an attractive option. You can learn more about this process in our article: Your Lease Is Over. The Car's Story Isn't. Finance Full Residual, Toronto.
Similarly, buyers in different life stages can leverage their assets and credit differently. For a look at how investment income can be used, our guide Retiree Car Finance: Zero Down with Investment Income offers powerful strategies that may apply.
Frequently Asked Questions
What interest rate can I expect in Quebec with a 700+ credit score?
With a credit score of 700 or higher, you are considered a prime borrower. You can expect to be offered the most competitive rates from major banks and manufacturer's captive lenders. Depending on the market and any promotional offers, rates can range from 4.99% to 7.99% or lower on new vehicles. Always compare the rate from the dealership with a pre-approval from your own bank.
Is an 84-month loan a good idea for a luxury car?
It can be, but with significant caveats. An 84-month term lowers the monthly payment, making the car more accessible. However, you will pay much more in total interest and remain in a negative equity position for longer. We strongly recommend making a substantial down payment (15-20%) if you choose this term to offset the initial depreciation.
How are taxes calculated on a car purchase in Quebec?
In Quebec, car purchases are subject to two taxes: the federal Goods and Services Tax (GST) at 5% and the Quebec Sales Tax (QST) at 9.975%. These are calculated on the final negotiated price of the vehicle. For an $80,000 car, the total tax would be approximately $11,980, bringing the total cost to $91,980 before financing.
Do I need a down payment for a luxury car if I have excellent credit?
While you can often get approved for $0 down with a 700+ score, it's not always advisable, especially on a long-term loan. A down payment reduces the amount you finance, lowers your monthly payment, decreases the total interest paid, and helps protect you against negative equity. For a luxury car on an 84-month term, a down payment is a financially prudent move.
Can I get approved for a six-figure car loan with a 700+ score?
Yes, absolutely. A 700+ credit score clears the primary hurdle. The final approval for a loan over $100,000 will depend on your income and overall debt-to-income ratio. Lenders need to see that you have sufficient, stable income to comfortably service the large monthly payment without financial strain.
