84 Month Car Loans: The Solution To Car Buying On a Low Budget

When shopping for a new or used vehicle, many drivers in Ontario are drawn to one particular financing option: 84 month car loans. In Ontario, where the cost of living—and cars—continues to rise, stretching payments over seven years can seem like a smart way to get into the vehicle you want without overwhelming your monthly budget.

 

But while the low payments may look appealing at first glance, there's more to consider beneath the surface. Let’s break down what 84 month car loans in Ontario really mean for your wallet, your vehicle, and your financial future.

 

 

What Is an 84 Month Car Loan?

 

An 84 month car loan is exactly what it sounds like—a loan that spans 7 years, or 84 months. These long-term auto loans are becoming increasingly popular in Ontario, largely due to the rising price of vehicles. With average new car prices often surpassing $50,000, many buyers are turning to longer terms to make their payments more affordable.

 

Instead of paying $800+ a month over five years, you might see a monthly payment closer to $600 when stretched over seven. That immediate savings can be tempting, but it's important to understand the trade-offs.

 

Why So Many Choose 84 Month Car Loans in Ontario

 

Let’s face it: not everyone can afford a hefty car payment on top of housing, groceries, and other living expenses. For many people in Ontario, an 84 month car loan offers an accessible entry point into vehicle ownership—especially for families needing an SUV or truck.

 

Here are some reasons why they’re popular:

 

• Lower monthly payments: Spreading the cost over seven years reduces the strain on your monthly budget.

 

• Access to better vehicles: With smaller monthly payments, some buyers can afford higher trims or newer models.

 

• Flexible options: Many dealerships offer a variety of loan structures, and some consumers prefer having the flexibility to make additional payments down the road.

 

However, this flexibility can come with financial drawbacks if not managed carefully.

 

The Real Cost of Long-Term Auto Loans

 

While 84 month car loans in Ontario lower your monthly payments, they increase the total interest paid over the life of the loan. Even with a low interest rate, a longer term means you’ll be paying interest for two extra years compared to a 60-month loan.

 

Another risk? Depreciation. Vehicles tend to lose their value quickly, especially in the first few years. With an 84 month term, it’s easy to find yourself “underwater” on your loan—owing more than the car is worth—especially if you’re not putting much down upfront.

 

This situation can make it hard to sell or trade in your vehicle before the loan is paid off, unless you’re prepared to roll the remaining balance into a new loan (which only prolongs the cycle).

 

Who Should Consider 84 Month Car Loans in Ontario?

 

These loans aren't inherently bad—they just aren’t right for everyone. If you're considering an 84 month car loan in Ontario, here are a few signs it might work for you:

 

• You plan to keep the vehicle for a long time (7+ years).

 

• You’re confident in your job stability and long-term financial situation.

 

• You're comfortable with the idea of paying more in interest in exchange for lower monthly payments.

 

On the other hand, if you typically switch cars every few years, or if you don’t want to pay extra interest, a shorter loan term may be more appropriate.

 

Final Thoughts

 

84 month car loans in Ontario offer convenience and affordability upfront, but they come with long-term financial responsibilities. Before signing on the dotted line, it’s important to look at the full picture: how much interest you'll pay over time, the potential for negative equity, and how long you actually plan to keep your car.

 

Always read the fine print, ask questions, and make sure the loan aligns with your long-term goals—not just your current monthly budget.

 

If you're making an informed decision, 84 month car loans in Ontario can be a useful tool. Just make sure you’re driving into the future—not into debt.

 

If you're ready for a car loan in Southern Ontario, we'd love to help with that! Simply fill in the form below to get started.