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Top links: Lengthy loans cannibalize auto sector’s future

A roundup of what The Globe and Mail's market strategist Scott Barlow is reading this morning on the World Wide Web.

Bloomberg reports that Canadian auto dealerships are offering eight year financing in a move that amounts to cannibalization of the industry’s future. There is, of course, a short term sugar-high for sales but this is merely pulling potential sales three to five years from now into the present – not driving the sale of additional vehicles. Auto analyst Dennis DesRosiers is quoted in the story, “‘On a 96-month loan it takes 80-plus months before you are back in the money,’ ” he said.