Students who borrow money from banks or other financial institutions can end up paying more for a car or truck than they would have if they had bought their own car or even borrowed the money from a lender.
But those types of loans have become increasingly popular in recent years.
The National Automobile Dealers Association says loans made on loans are up more than 10 per cent since the recession.
It says it receives between $3.8 billion and $5.6 billion in loan repayments from such borrowers each year.
It’s a significant portion of the $18-billion in total auto loans outstanding.
And a growing number of consumers are now opting to get their own cars or trucks rather than borrow money directly from the banks.
This article originally appeared on The Globe and Mail.