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In MB, what should I know about maximum amortization length for car loans?
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Car Loan Glossary • mb

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

In Manitoba, similar to other Canadian provinces, there isn't a specific provincial or federal regulation that sets a maximum amortization length for car loans. Instead, the maximum term is determined by individual lenders-banks, credit unions, and manufacturer finance companies-based on their internal risk policies, the vehicle's value, and prevailing market conditions. While 60 to 96 months (5 to 8 years) is the most common range, some lenders may offer terms up to 108 or even 120 months (9 to 10 years) for new, higher-value vehicles, particularly as consumers in the 2025 market often seek to lower monthly payments.

This matters significantly to the consumer because longer amortization periods, while making monthly payments more affordable, dramatically increase the total interest paid over the life of the loan. Furthermore, extended terms heighten the risk of negative equity, where the vehicle's rapid depreciation means you owe more than it's worth, which can create financial challenges if you need to trade in the vehicle or if it's written off. It's crucial for Manitoban consumers to carefully weigh the immediate benefit of lower payments against the long-term cost and financial implications of their car loan.

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