96-Month Car Loans: The True Cost of Lower Payments

Are you considering taking out a 96 month car loan in Canada to afford your dream truck, but wondering how Canadians are affording trucks with the rising cost of living in 2026? The average car payment in Canada is on the rise, and with the current Bank of Canada interest rates, it's becoming increasingly difficult to manage debt, including HELOC debt. According to Statistics Canada wealth data, many Canadians are finding themselves house rich but cash poor, struggling with lifestyle creep and negative equity car loans. In this video, David Finance explores the dangers of the 8-year car loan trap and how it can impact your personal finance and wealth building goals in Canada. With truck prices in Canada at an all-time high and car depreciation a major concern, it's essential to have a solid understanding of money management in Canada to achieve financial freedom. By examining the wealth gap in Canada and sharing success stories, you'll learn how to make informed decisions about your finances and avoid common pitfalls, such as taking on too much debt or falling into the trap of lifestyle creep. Whether you're looking to build wealth in Canada or simply manage your loonies more effectively, this video will provide you with valuable insights and practical advice to help you achieve your goals. Chapters: 0:00 The Hidden Cost of a New Vehicle 2:15 Testing the Limits of Your Budget 3:49 Adding Up the True Ownership Costs 8:27 The Price of Stretching Your Loan 11:21 What Happens if You Need to Sell Early? Subscribe for weekly personal finance breakdowns, and let me know in the comments: have you ever calculated the total interest on an 8-year loan?