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

In British Columbia, there isn't a specific provincial legal maximum for car loan amortization periods; instead, market practices and lender policies dictate the practical limits. Commonly, you'll find car loans ranging from 60 to 96 months (5 to 8 years), with 84 months being a frequent upper limit for many prime lenders, though 96 months is increasingly offered, particularly for new or higher-value used vehicles amidst rising prices and interest rates in the Canadian market as of 2025. The primary appeal of a longer amortization is significantly lower monthly payments, which can make a vehicle seem more affordable on a cash flow basis. However, this comes with substantial drawbacks: a much higher total interest cost over the life of the loan and a significantly increased risk of negative equity. Negative equity means owing more on the car than it's worth, which is a common scenario in the early years of extended loans due to rapid vehicle depreciation. This matters deeply to the consumer because it can complicate future trade-ins, make selling the vehicle privately challenging, and expose you to financial loss if the vehicle is stolen or written off and insurance payouts don't cover the outstanding debt. Therefore, while longer terms offer immediate payment relief, consumers in BC should carefully consider the long-term financial implications and potential risks before committing to an extended amortization.