In AB, what should I know about maximum amortization length for car loans?

In Alberta, there isn't a specific provincial regulation that sets a hard maximum amortization length for car loans; instead, these terms are primarily dictated by lender policies and market conditions. Commonly, car loan terms range from 60 to 96 months. For new vehicles or higher-value used vehicles, some financial institutions may offer extended terms up to 108 or even 120 months, though these are less prevalent. These longer terms are a result of competitive pressures and a lender's risk assessment, not a government-mandated cap.

Why this matters to you: While a longer amortization period significantly lowers your monthly payments, it dramatically increases the total interest paid over the life of the loan. In the current 2025 market, where interest rates may be elevated, this extended interest accumulation can add thousands to the overall cost of your vehicle. Furthermore, longer terms substantially heighten the risk of negative equity, meaning you could owe more on the car than its market value, especially considering rapid vehicle depreciation. This can become a significant issue if you need to sell or trade in the vehicle before the loan is fully repaid, potentially forcing you to roll that negative balance into a new loan. It also means you'll be making payments on an older vehicle that will likely incur increasing maintenance and repair costs as it ages.