Canadians Are Buying A Record Number of New Cars, With A Record Amount of Financing (INCL. SUB-PRIME)
2017-05-09 — betterdwelling.com
``The uptick in average sale price is due to longer financing terms for buyers. According to the Financial Consumer Agency of Canada (FCAC), Canadians are "increasingly purchasing more car that they can afford," due to longer financing becoming fashionable. The agency notes that average leases have crept up 2 months, every year since 2010. According to the Bank of Canada (BoC), the average loan was 74 months as of 2015. Longer terms bring down monthly payments, but increases the total cost of the loan.
... The right to debt seems to be a topic all Canadians are embracing, and the auto sector is no different. The BoC has estimated that 25% of borrowers are non-prime, which incase you didn't know is Canadian-English for "sub-prime."... The boom of vehicle sales should be an indicator of a healthy economy, but is actually a drag due to the dependence on credit.
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