In MB, what should I know about accelerated payments for car loans?

In Manitoba, opting for accelerated payments on your car loan typically means choosing a bi-weekly or weekly payment schedule instead of monthly. The fundamental difference is that an accelerated bi-weekly payment is calculated as half of your standard monthly payment, but you make 26 such payments annually. This effectively results in one extra full monthly payment being made each year compared to a standard 12-month schedule (26 bi-weekly payments equate to 13 'monthly' equivalents).

This strategy significantly benefits consumers by reducing the total interest paid over the life of the loan and shortening the amortization period. In the current 2025 market, where interest rates remain a significant factor in overall borrowing costs, accelerating payments allows you to pay down the principal faster, thereby minimizing the amount of interest that accrues daily. While there are no specific provincial prohibitions against accelerated payments in Manitoba, lenders are obligated under The Consumer Protection Act to clearly disclose all terms and conditions of your loan agreement, including how accelerated payments are calculated and their impact.

Why this matters: By paying down your principal more quickly, you save a substantial amount of money in interest over the loan term, build equity in your vehicle faster, and reach debt-free status sooner. Always confirm with your lender that your chosen payment frequency is indeed 'accelerated' and understand the precise calculation to maximize your financial advantage.