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For most Alberta residents, having a car is a requirement for everything from going to work to getting groceries. However, many of us in Alberta simply don’t have enough cash to straight-up purchase a vehicle. Thankfully, while maintaining a car and keeping it full of gas can sometimes be time consuming and annoying, buying a car doesn’t have to be. This is thanks to the availability of car loans.
Want to know more about loans in Alberta? Click here.
Just like a standard loan, a car loan makes it easier to purchase large items using many smaller monthly payments, spread out over several years, instead of paying for the item in one lump sum. Furthermore, there are a variety of different types of lenders available for you to work with in Alberta, including:
- Bad credit lenders
- Private lenders
- Online lenders
All lenders in Alberta have their own benefits and drawbacks, depending on your wants and needs. While it can be tempting to choose a lender that offers you the largest loan, get a car loan that you can’t afford is never a good idea. Whatever you borrow, you will eventually have to pay back, plus interest. So unless you want to spend a few years paying back a huge loan, you are better off just getting something practical.
Check out this infographic for a comparison of new vs, used vehicles.
How to Find the Best Car Loan in Alberta?
So you know what a car loan is now and how they can help you out, but how do you go about getting the best car loan possible? Well, there are many things you can do to find the best car loan in Alberta, such as:
- Shopping around to different lenders and dealerships. Each provider in Alberta will have different interest rates, fees, and options. If you only visit one lender, you are doing yourself a disservice
- Make sure your credit report and score are in check before applying. The better your credit, the better your interest rate will be and the more money you will save
- Keep an eye on the total cost of the loan. The interest rate is only one thing to look at. You also need to be aware of the term length as well as any other fees that the lender might charge you
- Have a budget in mind beforehand and stick to it. Car salesmen are notorious for being very convincing, so make sure to stick to your guns
I Want To…
Trading in Your Old Car
Unless you are using this car loan to get your very first car, there is a good chance you are in possession of an old vehicle that you will need to get rid of once you get a new one. While you can sell it privately or just keep it to have two cars, there is also the option to trade it in. Trading in your car basically involves you giving your old car to a dealership, and in return, the dealership will provide you with a discount.
Here are some cars that typically have high trade-in values.
Many dealerships in Alberta have the option to trade in your old vehicle, and it can be a fantastic way to bring down the cost of your new vehicle. While you shouldn’t expect to get a ton, anything is better than nothing.
Wondering if you can trade in a vehicle that isn’t fully paid off? Check this out.
Bad Credit Car Loans in Alberta
While getting any sort of loan is fairly simple when you have good credit, it can sometimes be more difficult when you have bad credit. However, getting a car loan with bad credit isn’t impossible.
Bad credit in Canada generally means you have a credit score under 600. The most common causes of bad credit in Alberta are…
- Multiple missed payments
- Maxed out credit cards
- Defaulting on loans
- Past financial mistakes
- Loss of job or income
While bad credit car loans can come with higher interest rates, they are also a great way for consumers in Alberta to get back in the game and start to improve their credit while also benefiting from the convenience of having a reliable vehicle.
Look here for some information about regular bad credit loans in Alberta.
Want to Improve Your Credit First?
Of course, if owning a car right away isn’t absolutely necessary, you can always opt to improve your bad credit before applying. This can be done by:
- Paying off any active debt you have
- Using your credit card responsibly
- Don’t open too many new cards or seek out new credit too frequently
To find out how applying for new credit affects your credit score, read this.
Can I still qualify for a car loan in Alberta with a bad credit score?
Is it worth paying off a car loan early?
Can I refinance my car to save money?
The Right Car Loan For You in Alberta
There are a lot of Alberta car loan options out there and it can be intimidating. Thankfully, you don’t have to go at it alone. Loans Canada is here and we truly believe we can help you find the car loan that works best for you.