Canadians are buying more cars than almost ever before, but a closer look reveals they’re taking longer and longer to pay them off, too.
More than half of all new car loans are currently financed for 84 months — seven years — or longer. Industry standard used to be to amortize car loans over 60 months — five years — but as low interest rates settled in, payment periods began to stretch longer and longer to make monthly payments as low as possible.
