What is Bi-Weekly Payments?

Bi-weekly payments split a vehicle loan or lease into installments made every two weeks rather than once a month. Because there are 26 bi-weekly periods in a year, a true accelerated bi-weekly schedule results in the equivalent of 13 monthly payments annually, which can shorten the loan term and reduce total interest paid. Many Canadian buyers prefer bi-weekly payments because they align with common pay cycles and make budgeting easier. Dealers should be careful to distinguish accelerated bi-weekly payments, which pay the loan off faster, from simple bi-weekly payments that just divide the monthly amount in two. Presenting payments bi-weekly can also make a vehicle feel more affordable, but disclosure of the true cost of borrowing and term remains essential.