Used Car Loan Payments in Yukon for Fair Credit (36-Month Term)
You're in a unique position. With a credit score between 600 and 700, you're on the cusp of prime lending, and living in Yukon gives you a significant financial advantage: 0% Provincial Sales Tax (PST). This calculator is designed specifically for your scenario, helping you budget for a used car on a 36-month term.
A shorter 36-month term means higher monthly payments, but you'll pay significantly less interest over the life of the loan and own your vehicle outright much faster. Use the tool below to get a precise estimate based on your numbers.
How This Calculator Works
Our calculator provides a clear, data-driven estimate by focusing on the key factors for your situation:
- Vehicle Price: The sticker price of the used car you're considering.
- Yukon Tax (GST): While Yukon has 0% PST, a mandatory 5% federal Goods and Services Tax (GST) is applied to the vehicle's price. Our calculation includes this for accuracy.
- Down Payment/Trade-in: The cash you put down or the value of your trade-in. This amount is subtracted from the total price, reducing the amount you need to finance. A larger down payment significantly improves approval odds with a fair credit score. If you owe more on your current vehicle than it's worth, you may need a specific strategy. For more on this, check out our guide on how to Ditch Negative Equity Car Loan | 2026 Canada Guide.
- Estimated Interest Rate (APR): For a 600-700 credit score on a used vehicle, rates typically range from 9% to 16% APR. We use a realistic average in our examples, but your final rate will depend on your specific credit history, income, and the vehicle's age.
Example: Yukon Used Car Loan Scenarios (36-Month Term)
To give you a clear picture, here are some sample calculations. These estimates assume a $2,000 down payment and an estimated interest rate of 12.99% APR, typical for a fair credit profile.
| Vehicle Price | Total Financed (After 5% GST & Down Payment) | Estimated Monthly Payment | Total Interest Paid |
|---|---|---|---|
| $15,000 | $13,750 | $464/month | $2,954 |
| $20,000 | $19,000 | $639/month | $4,004 |
| $25,000 | $24,250 | $816/month | $5,126 |
Disclaimer: These are estimates for illustrative purposes only. Your actual payment will vary based on the final approved interest rate (OAC).
Your Approval Odds with a 600-700 Credit Score
A score in the 600-700 range is often called "fair" or "near-prime." Lenders see you as a responsible borrower who may have had some past credit challenges. Your approval odds are generally good, but lenders will look closely at two key areas:
- Income Stability: Lenders need to see consistent, provable income that can comfortably cover the new car payment plus your existing debts. If you have non-traditional income, it's still possible to get approved. For instance, if you're working for yourself, learn more here: Self-Employed? Your Bank Doesn't Need a Resume.
- Debt-to-Income (DTI) Ratio: This is the percentage of your gross monthly income that goes toward debt payments. Most lenders want to see this below 40-45%, including the new car loan. Proving income can sometimes be complex, especially with fluctuating earnings. Our guide on Variable Income Auto Loan 2026: Your Yes Starts Here. can provide valuable insights.
Providing a down payment of 10% or more can dramatically increase your chances of approval and help you secure a better interest rate.
Frequently Asked Questions
What interest rate can I expect in Yukon with a 650 credit score for a used car?
With a 650 credit score, you fall squarely in the fair credit category. For a used car loan in Yukon, you can generally expect an interest rate (APR) between 9% and 16%. The final rate depends on factors like your income stability, down payment size, and the age/mileage of the vehicle.
How does the 36-month term affect my loan?
A 36-month (3-year) term has two main effects. Your monthly payments will be higher compared to a longer term (like 60 or 72 months). However, the major benefit is that you will pay significantly less in total interest over the life of the loan and build equity in your vehicle much faster.
Is a down payment required for a used car loan with fair credit in Yukon?
While not always mandatory, a down payment is highly recommended for borrowers with a 600-700 credit score. It reduces the lender's risk, which can lead to a higher chance of approval and a lower interest rate. A down payment of 10-20% of the vehicle's price is a strong signal to lenders.
Does Yukon's 0% PST really save me money?
Absolutely. In provinces like British Columbia (7% PST) or Ontario (8% provincial portion of HST), a $20,000 car would have an extra $1,400 to $1,600 in provincial tax added to the price. In Yukon, you only pay the 5% federal GST ($1,000 on a $20,000 car), saving you a substantial amount that doesn't need to be financed and accumulate interest.
Can I get approved if I have a variable or self-employed income in Yukon?
Yes, you can. Lenders will want to see proof of consistent earnings, typically through bank statements (e.g., the last 6-12 months) and tax documents (like Notices of Assessment from the CRA). Demonstrating a stable average income is key to securing an approval.
