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

In Yukon, similar to the rest of Canada, the maximum amortization length for car loans is primarily determined by individual lender policies rather than specific provincial legislation. While 60 to 96 months (5 to 8 years) is the most common range, some financial institutions may extend terms up to 108 or even 120 months (9 to 10 years) for new vehicles, particularly in the current 2025 market where elevated interest rates often lead consumers to seek longer terms to achieve more manageable monthly payments.

However, understanding the implications of extended amortization is crucial. While longer terms undeniably lower your monthly payment, they significantly increase the total interest paid over the life of the loan. More importantly, they substantially heighten the risk of negative equity, where your outstanding loan balance exceeds the vehicle's market value due to rapid depreciation. This can leave you 'upside down' for a prolonged period, creating financial challenges if you need to sell or trade in the vehicle before the loan is fully repaid, potentially requiring you to roll the deficit into a new loan or pay out of pocket. Additionally, a vehicle financed over 8-10 years will likely incur substantial maintenance and repair costs towards the latter part of its loan term, adding to your overall financial commitment.