ANC Podcast Replay: Jan. 2, 2026 | Retired John Hiscock on affordability, fraud
About this episode
Reflecting on a distinguished 37-year career in automotive finance, John Hiscock shares insights on vehicle affordability, dealership health, and the ongoing challenges of auto loan fraud. He discusses the impact of rising interest rates on consumer stress and the evolving landscape of auto financing, including the potential for longer loan terms. Hiscock also emphasizes the importance of diversity, equity, and inclusion in the industry, despite recent cutbacks from major automakers. This conversation offers a deep dive into the financial aspects of the automotive sector and Hiscock's perspectives as he transitions into retirement.
In this replay of the June 6, 2025 episode, former Senior Vice-President of Automotive Finance at Scotiabank Canada John Hiscock talks affordability, dealership health, fraud, and retirement.
Ford
"...I was a retail lending officer for Ford Credit, the first company I worked for in Halifax, Nova Scotia."
Ford is a well-known car company that makes many types of vehicles, like the Ford Mustang and Ford F-150.
Ford is a major American automotive manufacturer known for producing a wide range of vehicles, including cars, trucks, and SUVs.
GST
"...the last day before the GST came into place on January 1, 1991."
GST stands for Goods and Services Tax, which is a tax added to the price of most things you buy in Canada. It was introduced to make taxes clearer for consumers.
The Goods and Services Tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption in Canada. It was introduced to replace the previous tax system, making taxation more transparent.
FST
"...the GST was actually replacing a tax called the FST, which was sort of hidden on an invoice..."
FST stands for Federal Sales Tax, which was a tax on goods and services in Canada before the GST. It was not clearly shown on invoices, making it hard for people to see how much they were paying.
The Federal Sales Tax (FST) was a tax that was previously applied to goods and services in Canada before being replaced by the GST. It was often hidden in pricing, making it less transparent for consumers.
OEM
"And then we're certainly starting to see over the past number of months more incentives from the OEM. So we're starting to see what we would call subvented interest rates."
OEM means the original company that made your car or its parts. It's important because it indicates the source of the vehicle's components.
OEM stands for Original Equipment Manufacturer, referring to the company that originally manufactured the vehicle or its parts. In the automotive context, it often relates to the car manufacturers themselves, like Ford or Toyota.
incentives
"And then we're certainly starting to see over the past number of months more incentives from the OEM."
Incentives are deals or discounts that car companies offer to help sell cars. They can make buying a car cheaper or easier.
Incentives in the automotive industry refer to discounts, rebates, or special financing offers provided by manufacturers to encourage vehicle sales. These can include cash rebates, low-interest financing, or lease deals.
subvented interest rates
"So we're starting to see what we would call subvented interest rates. So where they're buying down the market rates to provide the consumer a lower rate."
Subvented interest rates are special low rates that car makers offer to help people buy cars. They make it cheaper to borrow money for a car loan.
Subvented interest rates are lower interest rates offered by manufacturers to encourage consumers to purchase vehicles. This is often done to stimulate sales during slow periods or to promote specific models.
transaction price
"we have seen the average transaction price. And this is overall across all of our brands mixed together, you know, that's down slightly over the previous year."
The transaction price is how much you actually pay for a car after everything is added up. It's different from the sticker price you see on the car.
The transaction price is the final price that a buyer pays for a vehicle after negotiations, incentives, and any additional fees. It reflects the actual cost to the consumer rather than the MSRP (Manufacturer's Suggested Retail Price).
Toyota
"...companies like Ford, Toyota, GM, Nissan, they've all recently taken steps to scale back..."
Toyota is a popular car brand that makes many reliable vehicles, including hybrids like the Prius.
Toyota is a leading Japanese automotive manufacturer recognized for its reliable cars and innovations in hybrid technology, such as the Toyota Prius.
GM
"...companies like Ford, Toyota, GM, Nissan, they've all recently taken steps to scale back..."
GM, or General Motors, is a big car company that makes several brands of vehicles, like Chevrolet and Cadillac.
General Motors (GM) is an American multinational corporation that designs, manufactures, and sells vehicles under various brands, including Chevrolet and Cadillac.
Nissan
"...companies like Ford, Toyota, GM, Nissan, they've all recently taken steps to scale back..."
Nissan is a car brand from Japan that makes many different types of cars, including electric ones like the Leaf.
Nissan is a Japanese automotive manufacturer known for producing a wide range of vehicles, including the popular Nissan Altima and the Nissan Leaf electric car.
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