Amortization Period

The amortization period is the length of time over which a car loan is repaid in regular instalments. In Canada, auto loans commonly range from 36 to 84 months, with some extending up to 96 months. A longer amortization period can lower monthly payments but increases the total interest paid. Dealership finance managers ensure the amortization period suits the buyer’s budget while keeping the vehicle’s age and depreciation in mind.