Underwater Financing

Feb 13, 2019 | Jeremy Goldfarb


Some experts believe that a major potential risk in the Canadian economy is in the automotive financing sector. While very recent data shows reduced auto sales, the past number of years has seen creative financing packages offer more expensive vehicles to a wider audience.


The overall credit risk aside, I read and interesting piece on automotive financing earlier this week that I think should be shared both with clients, and their family members. Extended amortizations have long been associated with residential financing, but the onset of extended terms for loans (72, 84 months) has crept into automotive financing in the past number of years. That is a dangerous game for many reasons, but a significant one can be found if you click here