Your 84-Month New Car Loan in Quebec: A Guide for Excellent Credit
Welcome to your specialized auto finance calculator for Quebec. You've selected the optimal scenario: a brand-new vehicle, a strong credit score of 700 or higher, and the longest available term of 84 months. This combination puts you in the driver's seat, giving you access to the lowest interest rates and most flexible payment options on the market.
With excellent credit, lenders view you as a low-risk borrower. This means you can secure larger loan amounts and favourable terms. An 84-month (7-year) term significantly lowers your monthly payment, making a more premium vehicle accessible. However, it's crucial to understand how this longer term affects the total interest paid over the life of the loan. This calculator is designed to give you clarity and control over your financial decisions.
How This Calculator Works
Our tool simplifies the complex calculations involved in auto financing. Here's a breakdown of what each field means for your Quebec car loan:
- Vehicle Price: The Manufacturer's Suggested Retail Price (MSRP) of the new car you're considering. Don't include taxes here; we'll break that down separately.
- Down Payment: The amount of cash you're putting towards the purchase upfront. A larger down payment reduces your loan amount, lowers your monthly payment, and can help you secure an even better interest rate.
- Trade-in Value: The value of your current vehicle that you're trading in. This amount is deducted from the new car's price, further reducing the amount you need to finance.
- Interest Rate (APR): With a 700+ credit score, you can expect prime rates. For a new car on an 84-month term, a realistic estimated range is 6.49% to 7.99% OAC (On Approved Credit). Rates can fluctuate based on the lender and specific promotions.
The calculator uses these inputs to provide a precise monthly payment estimate, helping you see exactly how a new car fits into your budget.
Approval Odds with a 700+ Credit Score
Your approval odds are Excellent. A credit score above 700 signals to lenders like major banks (RBC, BMO, Scotiabank) and manufacturer-specific financing arms (e.g., Ford Credit, Toyota Financial Services) that you have a proven history of managing debt responsibly.
Benefits this unlocks for you in Quebec:
- Lowest Available Interest Rates: You qualify for the best advertised rates, saving you thousands in interest over an 84-month term.
- Higher Loan Amounts: Lenders are comfortable approving you for larger amounts, giving you more choice in vehicle selection.
- Flexible Terms: You can often negotiate terms, including potential $0 down payment options.
- Streamlined Process: Expect a faster, smoother approval process with minimal documentation required compared to other credit tiers.
While banks are a common route, it's also wise to understand all your options. For a deeper dive, see our guide on how to Skip Bank Financing: Private Vehicle Purchase Alternatives.
Understanding Quebec's Tax & Your 84-Month Loan
It is critical to budget for taxes in Quebec. Unlike some provinces, Quebec has two sales taxes that apply to vehicle purchases:
- Goods and Services Tax (GST): 5% (Federal)
- Quebec Sales Tax (QST): 9.975% (Provincial)
These taxes are calculated on the final sale price of the vehicle *after* any trade-in value is applied. The total combined tax rate is 14.975%. This is a significant amount that must be factored into your total loan.
Example Payment Scenarios (84-Month Term in Quebec)
Let's see how this plays out. The table below uses an estimated interest rate of 6.99% for someone with a 700+ credit score.
| New Vehicle Price | Down Payment | Total Tax (14.975%) | Total Financed Amount | Estimated Monthly Payment |
|---|---|---|---|---|
| $40,000 | $5,000 | $5,990 | $40,990 | ~$610/mo |
| $55,000 | $5,000 | $8,236 | $58,236 | ~$867/mo |
| $70,000 | $10,000 | $10,483 | $70,483 | ~$1,049/mo |
*Disclaimer: These are estimates for illustrative purposes only. Your actual payment will depend on the final interest rate and terms offered by the lender.
As you can see, the 84-month term keeps payments manageable even on higher-priced vehicles. However, you will pay more total interest compared to a shorter term. It's a trade-off between monthly affordability and total cost. For those who are self-employed and managing their finances differently, understanding how income is presented is key. You can learn more in our Tax Return Car Loan: Self-Employed Approval Canada guide.
Frequently Asked Questions
What is a good interest rate for an 84-month new car loan in Quebec with a 700+ score?
With a strong credit profile (700+), you should expect to be offered prime interest rates. For a new vehicle on a long term like 84 months, a competitive rate would typically fall between 6.49% and 7.99%. Rates can be influenced by manufacturer incentives (sometimes offering promotional rates as low as 2.99% or 3.99% on specific models), your exact credit score, and your relationship with the lender. Always ensure you are dealing with a reputable source; our How to Check Car Loan Legitimacy: Canada Guide can help you verify offers.
How is sales tax calculated on a new car in Quebec?
In Quebec, you pay both the federal GST (5%) and the provincial QST (9.975%). The total tax of 14.975% is applied to the final purchase price of the vehicle. If you have a trade-in, its value is deducted from the vehicle price *before* the tax is calculated, which provides a significant tax savings.
Are there any downsides to an 84-month car loan, even with good credit?
Yes. The main downside is the total amount of interest paid. While your monthly payment is lower, you pay interest for a longer period (7 years), meaning the total cost of borrowing will be higher than on a 60 or 72-month loan. Another risk is negative equity, where you owe more on the loan than the car is worth for a longer portion of the loan term, which can be problematic if you need to sell or trade the vehicle early.
Can I get approved for a new car loan in Quebec with a 700 score but a new job?
Yes, most likely. With a credit score of 700+, lenders are already confident in your financial history. While they prefer stable employment, a new job (especially if it's full-time and in a stable industry) is not usually a barrier. They will want to see your employment contract or first few pay stubs to verify your income, but your strong credit score carries the most weight.
Do I need a down payment for a new car in Quebec if my credit is excellent?
Often, no. Many lenders and dealerships will offer $0 down financing to well-qualified buyers with credit scores over 700. However, making a down payment is always recommended. It reduces the total amount you finance, lowers your monthly payments, decreases the total interest paid, and helps you build equity in the vehicle faster, protecting you against depreciation.
