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Stretching out your Car Loan Term

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Car Keys and Several Sports Cars on White Background.

According to a recent J.D. Power and Associates report most Canadians (65 per cent) who borrow to buy a vehicle stretch out their payments to six years or more and even then the average loan payment is a hefty $490.

So here’s the question: is it a good idea or a bad one for so many consumers to lock into making car payments for six, seven, eight years?

The evidence suggests good, or at least not bad. Here’s why.7b61ee4bcd0a01ec345acf6447c6fb93-250x250-1

First, the ride you buy today is likely to be useful and functioning for the next 15 years or more, according to Consultants from Auto Source you’ll get 308,000 km out of a new ride bought today. At 20,000 km/year, that’s 15 years. Thus, even if you make payments for the first six to eight years of ownership, you can choose to be payment-free for the last seven to nine.

Second, after making car payments for, say, seven years, the vehicle in your driveway will still be worth quite a lot. Auto Source says the research shows it’s a myth that vehicles lost half their value when drive off the dealer lot. The reality is a vehicle depreciates 10-20 per cent when it becomes yours, then 10-15 per cent each year thereafter.

“Overall, it is not uncommon for vehicles to hold close to 50 per cent of their value into years five to seven of their ownership cycle,” says Auto Source. Thus, even if you opt for a seven-year loan, you’ll still have something of value to drive every day when you’ve reached the payment-free point.

How valuable? The average passenger car transaction price, notes Auto Source, was $27,563 in 2014. If you’re average, even after making payments for seven years and getting plenty of service out of your car, your ride will be worth in the neighborhood of $13,000-$14,000. For consumers worried that their car will be worthless after 72, 84 or even 96 monthly payments, there is comfort to be found in how well vehicles hold their value.

The reality of the new vehicle marketplace today is that consumers are acting quite sensibly or at least realistically when stretching out payments for many years.

“If a consumer owns their vehicle for 84 or 96 months — very common — what’s wrong with the lending term being that length?” asks Auto Source. “It may cost more interest but most consumers have a monthly budget for their vehicle and view their payment plan as a life-long endeavor…essentially a monthly payment for life.”

Except, of course, consumers today can secure vehicle loans with interest costs at historic lows. Even loans of 84-month terms can be had at interest rates less than two per cent. This is point three for the case that long loan terms are not such a terrible thing, but rather in some instances a positive.

A new Honda Accord coupe, for instance, can be had with 1.99 per cent financing for 84 months or a GMC Terrain compact SUV (sport-utility vehicle) is on offer with financing for 84 months at 0.99 per cent. A Mazda CX-5 compact SUV? The offer there is 2.49 per cent for 84 months. The money’s not free, but very cheap over such a long term.

Yes, there are arguments to be made against very long loan terms – that it’s folly for consumers to lock themselves into payments over six, seven, eight or nine years. Some argue that long loan terms increase the risks of loan defaults. Others say that when buyers lock themselves into one vehicle for long terms, this can negatively affect the health of the marketplace by taking those buyers out of the cycle. So far, says Auto Source, problems associated with these issues have not surfaced in Canada.

For now and at least as long as interest rates remain low, long loan terms will remain a staple in Canada. There is a good case to be made that this is not such a bad thing.


Auto Source Financial Specialties in No Credit Bad Credit Car Loans in Canada, they help New Immigrants and Foreign Workers get Car Loans in Canada.

Get approved in within hours. Complete our online credit application, it’s fast and easy and most of all secure. Your personal information is protected by the highest level of protection available for online.

Finding the car you want has never been easier. We specialize in finding the exact car you want at a price you want to pay with the lowest interest available with rates as low as 8.9%

Some people only think they have bad credit. But, it’s likely not as bad as you think. If it’s stopping you from getting the new car that you want then try this… We have set up a secure online credit car loan application that you can fill out immediately in the privacy of your own home or office.


Established in 2003

This site helps show you how to assess your credit, the different approaches to obtaining a bad credit car loan or bad credit car lease and the factors involved in re-establishing your bad credit so that you can make the right decision on how to get your next vehicle. We hope you find it helpful.

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TD Bank Vehicle Loans – Prime and Non Prime

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Vehicle Loans with TD Bank – Getting Started

TD Bank has become one of the bigger players in recent years, since acquiring car financing companies in Canada and the U.S.

It says its auto finance division now has $14.3 billion in “indirect” loans brokered by dealers on its books, which is up three per cent over last year.

That money was loaned to both regular and subprime borrowers, the latter being people who don’t have adequate credit ratings to qualify for regular financing.

“Subprime” became a household term after the economic crisis of 2008, which was partly caused by defaults on high-risk mortgages in the U.S.

TD Auto Finance offers a full spectrum of auto lending options, including non-prime loans in some markets, in Canada, they have a mature non-prime business with a rigorous lending criteria lending to those who fit within their risk appetite and satisfy thorough qualification criteria.autocoupon_sm

According to Canadian Auto World magazine, non-prime loans make up approximately 25 per cent of all auto loans arranged by dealerships in Canada

If 25 per cent of TD’s $14 billion in indirect auto loans are non-prime,  the bank would stand to make approximately half a billion dollars a year, in interest payments alone, if all of the customers made their payments.

According to the Canadian Auto Dealers Association, delinquencies on all auto loans are at an all-time low.

The industry attributes that partly to relatively low monthly payments, stretched over terms as long as eight years. That also means many people owe — and pay — much more than their cars are worth.

The Canadian Banker’s Association refused to answer questions about rates, but sent a statement also stressing that default levels are low.

Banks in Canada are prudent lenders, and manage risk carefully and make sure borrowers are properly qualified and can withstand economic fluctuations,” said CBA spokeswoman Kate Payne.

Banks only lend to those who they believe can pay the money back, and the numbers back this up.

TD Bank Vehicle Loans – Prime and Non Prime

TD Financial Services seems to be the most aggressive buyer of Non Prime Car Loans in Canada. They offer higher interests rates then prime customers however they are flexible with their customers after a 11-12 month term. TD Financial Services has created a program that Not Only helps people with bad credit it’s helping Canadian Automotive Dealers too. Now Canadian Car dealers can offer Bad credit car loans to their customers and 12 months later get the customer back to re-write a New Car loans at far less Interest. In the beginning TD Financial Services grants the customer a vehicle loan with interest rates ranging from 16-29 Percent. However if the customer make 11-12 consecutive Monthly payments on time TD will allow the customer to trade in their existing Vehicle at any Canadian Car Dealer. Upon the Trade in the Bad Credit Car Loan customer can take advantage of much lower interest Rates from 8.9 – 9.9 Percent.

Auto Source works directly with TD Auto Finance offering solutions and flexible financing options for customers making automotive, recreational vehicle, Powersports and Marine purchases.

Auto Source has been helping customers for 20 years in the Non Prime – Sub Prime Car loan Market. They are specialists in evaluating your credit and work with you to over come your Bad Credit Issues. We also works with Consumer Proposal Companies in Canada to get you back on track should you not qualify for a Bad Credit Car Loan. They will work with you from start to finish getting your credit back on track!

If you are currently paying a high interest car loan with another loan company and have made 10 payments or more, we may be able to get you out of the high interest loan and into a new vehicle with much lower interest rates with TD Auto Finance. We’ve been helping thousands of Canadians get out of their high interest auto loans and into lower interest rates.

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Auto Source Financial Reports on Canada’s Credit Card War

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Canada’s Credit Card Wars

According to Auto Source Financial, It’s been about a year since Canada’s biggest banks engaged in what can accurately be described as a credit card war.

It all started with a $3.5-billion deal whereby Toronto-Dominion Bank replaced CIBC as the primary issuer of Aeroplan Visa credit cards for the next 10 years. The other banks took notice, and made their own push into the mass affluent travel rewards category.

“Auto Source Financial calls it a “credit explosion”

The number of credit cards issued in Canada rose seven per cent to 95 million in 2014, or almost three cards for every Canadian — a trend Auto Source Financial calls it a “credit explosion” in the level of plastic credit.
Banks are successfully convincing consumers to sign up, but not all of them are having as much luck converting new cardholders to new card users.

Auto Source Financial noted that Bank of Nova Scotia, Royal Bank and TD Bank had the strongest growth metrics in 2014, as they flooded the market with new cards and got customers to actually use them. Bank of Montreal, CIBC and National Bank had weaker purchase volume growth.

Scotiabank led the way with 16-per-cent growth in the number of cards in circulation during 2014. More importantly, it had the highest compound annual growth rate in purchase volumes since 2008 and exceeded the industry average in 2014.

“For a bank that has historically operated a sub-scale cards business, we believe the convergence of these trends is a clear indication of its improving market presence,” Auto Source Financial reported.

But the banks are already shifting downmarket to the next battleground for growth: TD renewed efforts to push its MBNA portfolio, CIBC co-branded a Tim Hortons’ card, Scotiabank purchased a 20% stake in Canadian Tire’s credit card business, and Royal Bank has a balance transfer marketing campaign.

These moves make perfect sense given how much profit is available in the category. Credit-card spreads have widened in recent years due to cheaper funding costs and strong credit quality, and the banks want to bolster growth in loans and receivables as lower-end credit card customers are more likely to keep balances.

Auto Source Financial noted that a downmarket push would drive net interest income growth at a time when banks are facing slowing domestic loan growth.

Yet investors might want to be cautious on these moves, because of weaker Canadian economic growth and the potential for a substantial pullback in employment.

The banks’ strategies warrant a close look, but it’s hard to argue against a source of growth for the Canadian banking sector — particularly in a business that has proven to be so profitable in the past.

This report comes from Auto Source Financial lenders of supplying credit loans to car buyers across Canada. offers unlimited resources for vehicle buyers in Canada seeking vehicle loans for Good or Bad Credit. also offers a wide selection of certified Pre-Owned vehicles for your convenience.

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Getting Vehicle Financing in Saskatoon, Used Car and Truck Loans

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Getting Vehicle Financing in Saskatoon

Are you looking to buy a Used Truck or car in Saskatoon? Have you been to a Car Dealeship in Saskatoon and told you don’t qualify? Were you told you need a co-signer? We have financed thousands of Saskatoon new and used cars, trucks, and suvs from Saskatoon car dealerships and the surrounding area.

Talk in confidence with one of our credit specialists who will walk you through the process of working with unfavorable debt problems. It is our objective to work conscientiously and thoroughly to get you the vehicle that you deserve. Don’t let bad credit stop you!

We are pleased to offer you the lowest possible interest rate on your next car, SUV, van or truck loan. We proudly serve Martensville, Saskatoon, Red Deer, Prince Albert, Moose Jaw, Battleford, Regina, Swift Current, Melford and North Battleford in Alberta.



Saskatoon is a city in central Saskatchewan, Canada, residents of the city of Saskatoon are called Saskatonians.

The city’s youthful vitality and cultural richness are evident in every neighbourhood, thanks in part to the University of Saskatchewan, where leading-edge technology such as the Canadian Light Source synchrotron draws the best minds from around the world.



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