You may be offered car loans with repayment terms of 6, 7, 8 years or even longer. That’s a stretch from the traditional car loan of five years or less! Be careful about getting over-extended.
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The overall cost of the car is increased when you opt for a longer-term car loan since the interest you will pay over the loan’s term. In the example below, you would pay more than double as much in interest, increasing Car B’s overall cost by an increased amount of $2,700.
While Fabian notes that delinquency rates for car loans are still low, long-term car loans are a growing piece of Canada’s debt picture – especially as Canadians are buying bigger, more.
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