Car Payment Calculator Ontario

In Ontario, HST stands for Harmonized Sales Tax, which is a combined federal and provincial sales tax. Currently, it is 13% and applies to the purchase of both new and used vehicles from licensed dealerships. This tax is calculated on the selling price of the vehicle *before* any trade-in value or down payment is applied, and it is typically rolled into your total loan amount if not paid upfront.

Yes, it is common practice for dealerships to offer extended warranties, rustproofing, protection packages, and other add-ons which can be included in your car loan. While convenient, financing these items means you'll pay interest on them over the life of the loan, significantly increasing their total cost. Always consider whether these add-ons are necessary and if financing them is the most cost-effective option.

Your credit score is a crucial factor that lenders use to assess your creditworthiness and determine the interest rate you qualify for. A higher credit score (typically above 660-700) indicates lower risk to lenders, allowing you to secure lower interest rates and potentially better loan terms. Conversely, a lower credit score may result in higher interest rates, increasing your monthly payments and the total cost of the loan.

Generally, yes, making a higher down payment is beneficial. A larger down payment reduces the principal amount you need to finance, which in turn lowers your monthly payments and the total amount of interest you'll pay over the life of the loan. It also helps you build equity in the vehicle faster and can sometimes qualify you for more favorable loan terms from lenders.