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

In Saskatchewan, as across Canada, there isn't a strict legal maximum amortization length for car loans, but market practices and lender policies typically dictate the terms. While 60 to 84 months remain common, it's increasingly possible to find terms extending to 96 months, and occasionally even 108 or 120 months for new or higher-value used vehicles, particularly in the 2025 market where rising vehicle prices and interest rates drive demand for lower monthly payments. Lenders assess creditworthiness, vehicle value, and loan-to-value ratios when determining eligibility for these extended terms.

Why this matters to you, the consumer, is significant. Opting for a longer amortization period, while reducing your monthly payment and making a vehicle seem more affordable upfront, comes with substantial trade-offs. You will pay considerably more in total interest over the life of the loan. Furthermore, longer terms significantly increase your risk of being in a negative equity position - owing more on the vehicle than it's worth - for an extended period, which can complicate trade-ins, sales, or insurance claims in the event of an accident. It's crucial to balance monthly affordability with the total cost of ownership and your personal financial risk tolerance.

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