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In NL, what should I know about bi-weekly vs monthly payments for car loans?
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In NL, what should I know about bi-weekly vs monthly payments for car loans?

In Newfoundland and Labrador, the choice between bi-weekly and monthly payments for a car loan can significantly impact your financial outcome. While monthly payments are straightforward (12 per year), bi-weekly payments (26 per year) offer a distinct advantage, particularly with the 'accelerated bi-weekly' option. This method takes your standard monthly payment, divides it by two, and applies that amount every two weeks. Because there are 26 bi-weekly periods in a year, you effectively make the equivalent of 13 monthly payments annually, rather than 12. This extra payment directly contributes to reducing your loan's principal balance faster. For Canadian consumers in 2025, especially with the current economic climate and potential for interest rate fluctuations, this accelerated principal reduction translates into substantial interest savings over the life of the loan and shortens your overall amortization period. Beyond the financial savings, bi-weekly payments often align more naturally with common Canadian paycheque schedules, making budgeting simpler and more consistent. It's a strategic financial decision that can lead to owning your vehicle outright sooner and saving you considerable money.

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