Salient to Investors:

  • JD Power said the average term of a light-vehicle loan in Canada is 69 months versus the peak of 72 months in Q3 2013.
  • Canadians continue to buy big-ticket items and ignore warnings about unsustainable debt growth. Regina Malina at Equifax Canada sees little evidence Canadians are struggling to keep up with their auto loans.
  • Carlos Gomes at Bank of Nova Scotia said Canadian car and light truck sales will rise to a record 1.77 million in 2014.
  • Peter Buchanan at CIBC World Markets said Canadian consumers have been holding the economic fort as exports and business spending lag previous recoveries, but their ability to do so indefinitely is doubtful.
  • Scott Hannah at Credit Counselling Society recommends a maximum car loan length of 5 years with 20 percent down. Dennis DesRosiers at DesRosiers Automotive Consultants said it takes 80-plus months on a 96-month loan before you are back in the money.

Read the full article at  http://www.bloomberg.com/news/2013-09-19/asset-bubbles-found-by-finnish-economist-inspired-by-grandfather.html

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