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

In Nova Scotia, similar to other Canadian provinces, there isn't a specific legal maximum amortization length for car loans. Instead, the maximum term is determined by lender policies and risk assessment. While 60 to 84 months remain common, terms of 96 months have become increasingly prevalent, and some lenders may even offer up to 108 or 120 months for new vehicles, particularly in the 2025 market where higher vehicle prices and interest rates drive demand for lower monthly payments.

Why this matters: Opting for a longer amortization period will undeniably lower your monthly payments, making a more expensive vehicle appear more accessible within your budget. However, this comes at a significant cost: you will pay substantially more in total interest over the life of the loan. Furthermore, longer terms dramatically increase your risk of negative equity, where the outstanding loan balance exceeds the vehicle's market value due to rapid depreciation. This can create a significant financial burden if you need to sell or trade in the vehicle before the loan is adequately paid down, potentially requiring you to pay the difference out of pocket or roll it into a new loan, which can perpetuate a cycle of debt. Always weigh the benefit of lower monthly payments against the increased total cost and long-term financial implications.