Financing a Used Car in Yukon After a Repossession: Your 84-Month Loan Guide
Facing the car financing market after a repossession can feel daunting, especially in Yukon. You're likely dealing with a credit score in the 300-500 range and wondering what's possible. This calculator is designed specifically for your situation: financing a used car over an 84-month term with a past repo on your file. We'll break down the numbers, explain the lender's perspective, and show you a realistic path forward.
One key advantage in Yukon is the tax situation. While the federal 5% GST applies to vehicle purchases, there is no Provincial Sales Tax (PST). This 0% PST means the total amount you need to finance is lower than in most other provinces, which can make a significant difference in your monthly payment.
How This Calculator Works for Your Situation
This tool is more than a simple payment estimator; it's calibrated for the realities of subprime lending in Yukon for individuals with a history of repossession.
- Vehicle Price: Enter the price of the used car you're considering. Remember, lenders may have limits on the age and mileage of vehicles they'll finance for 84 months.
- Down Payment: A down payment is highly recommended after a repossession. It reduces the lender's risk and lowers your monthly payment. Even $500 or $1,000 can improve your approval odds.
- Trade-in Value: If you have a vehicle to trade, enter its value here.
- Estimated Interest Rate (APR): This is the most critical factor. With a credit score between 300-500 and a prior repo, expect rates between 19.99% and 29.99%. Lenders see this profile as high-risk, and the rate reflects that. Our calculator defaults to a realistic rate for this scenario.
Example Scenarios: Used Car, 84-Month Term, Post-Repossession
Let's look at some realistic monthly payment estimates. These examples assume a 24.99% APR, which is common for this credit profile. Note how the 0% PST (with 5% GST applied) impacts the total financed amount.
| Vehicle Price | Down Payment | Total + 5% GST | Amount Financed | Estimated Monthly Payment (84 Months) |
|---|---|---|---|---|
| $15,000 | $1,000 | $15,750 | $14,750 | ~$405 |
| $20,000 | $1,500 | $21,000 | $19,500 | ~$535 |
| $25,000 | $2,000 | $26,250 | $24,250 | ~$665 |
Disclaimer: These are estimates only and do not constitute a loan offer. Payments are calculated On Approved Credit (OAC).
Your Approval Odds & What Lenders Look For
Getting approved after a repossession is challenging, but not impossible. Lenders will shift their focus from your credit score to other key factors:
- Income Stability: Can you prove a stable, verifiable income of at least $2,200 per month? Lenders need to see you can comfortably afford the payment.
- Debt-to-Income Ratio: Your total monthly debt payments (including the new car loan) should ideally be less than 40-45% of your gross monthly income. Lenders want to ensure you're not overextended.
- Time Since Repossession: The more time that has passed since the repo, the better. If you have re-established some positive credit since then (like a secured credit card), it demonstrates responsibility.
- The Vehicle: Lenders are hesitant to finance older, high-mileage vehicles for a long term like 84 months. A newer used car (typically under 6 years old with less than 120,000 km) has a much better chance of being approved for a long term.
Dealing with a repossession is similar in severity to other major credit events. For more on rebuilding, our Car Loan After Bankruptcy Discharge? The 2026 Approval Guide offers valuable strategies that also apply here. Similarly, understanding how to navigate financing with a challenging history is key, as detailed in our guide for Alberta: They See Bankruptcy. We See Your Next Car. Drive Today. If you're struggling with a down payment, which is often a hurdle, learn about your options in our article, Your Down Payment Just Called In Sick. Get Your Car.
Frequently Asked Questions
Can I get an 84-month car loan in Yukon with a past repossession?
Yes, it is possible, but it can be difficult. Lenders are cautious about long terms on used vehicles for high-risk borrowers. Approval often depends on having a stable income, a reasonable down payment, and choosing a newer model used car (typically less than 6 years old) that is likely to last the full 7-year term.
What interest rate should I expect for a used car loan after a repo in Yukon?
With a credit score in the 300-500 range following a repossession, you should anticipate an interest rate (APR) between 19.99% and 29.99%. The exact rate depends on your overall financial profile, including income stability, down payment amount, and the specific vehicle you choose.
How does Yukon's 0% PST affect my car loan calculation?
Yukon's 0% Provincial Sales Tax is a significant benefit. While you still pay the 5% federal Goods and Services Tax (GST), the absence of PST lowers the total purchase price. For example, on a $20,000 car, you only finance the $1,000 GST, not an additional 7-8% PST like in other provinces. This reduces your total loan amount and your monthly payment.
Will a down payment help me get approved for a car loan after a repossession?
Absolutely. A down payment is one of the most effective ways to improve your approval chances after a repo. It reduces the amount the lender has to risk, shows you have 'skin in the game', and lowers your monthly payments, making them more affordable and proving your financial stability.
What kind of used car can I get financed for 84 months with my credit score?
Lenders prefer to finance reliable, newer used vehicles for long terms. With a score of 300-500, focus on cars that are 2-6 years old with under 120,000 kilometers. Lenders are less likely to approve an 84-month term on an older vehicle that may not last the duration of the loan, as this increases their risk.
