Short answer: to estimate a car loan payment in Quebec, add the taxes to the vehicle price (GST 5% + QST 9.975% = 14.975% when you buy from a dealer), subtract your down payment and trade-in, then apply your interest rate over the loan term. The calculator below does it for you and also shows the total interest you will pay.
Quebec car loan calculator
Estimate only. Your actual payment depends on the lender's rate, fees, your credit and the exact tax treatment of your transaction. This tool does not replace advice from a financial professional.
How is a car loan payment calculated?
Lenders use the standard amortization formula:
Payment = P x r / (1 - (1 + r)^-n)
- P = amount financed (price after trade-in, plus taxes, minus down payment).
- r = annual rate divided by 12 (monthly rate).
- n = number of monthly payments.
Worked example: $30,000 car from a Quebec dealer
- Price: $30,000, no trade-in.
- Taxes: $30,000 x 14.975% = $4,492.50.
- Down payment: $3,000.
- Amount financed: $30,000 + $4,492.50 - $3,000 = $31,492.50.
- Rate: 6.99% per year over 60 months.
Result: about $623 per month, with roughly $5,900 of interest over 5 years. Stretch the same loan to 84 months and the payment drops to about $475, but the total interest climbs to over $8,400.
How do taxes work on a car purchase in Quebec?
Buying from a dealer
The dealer charges GST (5%) and QST (9.975%), for a combined 14.975%. When you trade in a vehicle, taxes are generally calculated on the price minus the trade-in value, which is why a trade-in can save more than its face value. Confirm the exact calculation on your bill of sale.
Buying from a private seller
There is no GST on a private sale between individuals, but QST is paid when you register the transfer at the SAAQ. It is usually calculated on the higher of the purchase price and a value set from a reference guide, so a very low declared price does not always lower the tax. Our step-by-step guide to buying a used car in Quebec explains the transfer.
Which loan term should I choose?
| Term | Monthly payment | Total interest | Risk |
|---|---|---|---|
| 36-48 months | Higher | Lowest | Low |
| 60 months | Moderate | Moderate | Moderate |
| 72-96 months | Lowest | Highest | Negative equity for longer |
Long terms make a car look affordable, but you may owe more than the car is worth for years. That matters if you sell, trade in early or if the car is written off.
What else should I budget besides the loan?
Your payment is only part of the cost of owning a car. Plan for:
- Insurance (see how car insurance works in Quebec).
- Registration and driver's licence fees.
- Maintenance and repairs (see average car maintenance cost in Canada).
- Winter tires, mandatory in Quebec during the winter period (see winter tire rules in Quebec).
- Fuel or electricity.
How can I get a lower car loan rate?
- Check your credit report before shopping.
- Get a pre-approval from your bank or credit union to compare with dealer financing.
- Watch for manufacturer promotional rates on new cars, and compare them with any cash rebate offered instead.
- Make a larger down payment.
- Choose a shorter term if the payment fits your budget.
- Read the contract for fees, optional insurance and extended warranties added to the loan.
Loan or lease?
A loan makes you the owner once it is paid. A lease usually offers a lower payment but limits kilometres and ends without ownership unless you buy out the vehicle. If you drive a lot or keep cars a long time, financing is often the better fit.
FAQ
What is the sales tax on a car in Quebec?
From a dealer, GST 5% plus QST 9.975%, for 14.975% in total. On a private used-car sale, only QST is paid, at the SAAQ.
Can I include taxes in my car loan?
Yes, most lenders finance the taxes with the vehicle, as this calculator assumes. You can also pay them with your down payment.
Is a bi-weekly payment cheaper than monthly?
True bi-weekly payments (26 per year) repay the loan slightly faster and reduce interest. Some lenders simply split the monthly amount, so ask how they calculate it.
Does an EV rebate reduce my loan?
If a rebate is applied at the point of sale, it lowers the amount financed. See our page on electric car rebates in Quebec and check current program rules before buying.
