Finding a good car finance rate in Alberta and across Canada requires navigating a landscape of rising interest rates. As of now, the Bank of Canada has set the policy interest rate at about 5%. This benchmark rate influences the rates offered by banks and other lenders for car loans.

Additionally, interest rates can vary based on several factors including your credit score, the loan term, and the type of vehicle you’re financing or whether you have negative or positive equity. At House of Cars, we’re here to help you understand how this all works.

Here’s a breakdown to help you understand what a good finance rate is when buying a car:

1. Prime Rate Influence: The prime rate, which is closely linked to the Bank of Canada’s rate, is currently around 5.25% in July, 2024. 
2. Credit Score: If your credit score is excellent (above 750), you can score car loan rates as low as 5.5% to 6%. For good credit (700-749), expect rates around 6.5% to 7.5%. But if your credit is fair or poor (below 700), rates can climb above 8%, sometimes even hitting double digits.

*Rates mentioned are not guaranteed and are examples based on statistics from the time this article was written only. Please consult with a finance professional for more accurate rates.

1. Loan Term: The length of your car loan affects your interest rate. Shorter terms, like 36-48 months, usually offer lower rates but come with higher monthly payments compared to longer terms, like 60-72 months. It's a trade-off between saving on interest and managing monthly costs.
2. Vehicle Type and Age: New cars typically qualify for lower interest rates compared to older cars. This is because new vehicles have a more predictable depreciation rate and are considered lower risk by lenders.

With inflation and interest rates in flux, locking in a great car loan rate can be tough but doable. As of mid-2024, the Bank of Canada notes that core inflation is easing up, which could mean rates might stabilize or even drop soon. So, while it's tricky, there’s still a shot at securing a good deal on your car loan!

Where to get the best interest rates on used cars in Alberta

At House of Cars, we have a strong network of lenders, offering you competitive financing options. Whether you're having trouble finding a good rate elsewhere or just want to know your options, we can help. 

Visit us online or at any of our dealership locations in Alberta to speak with our finance experts. We can help you secure a car loan that fits your budget.

Deciding whether to lease or finance a car in Alberta can be as tricky as choosing the right toppings for your poutine.

Leasing a car vs financing a car have their perks and pitfalls, and what works for one person might not be the best for another. At House of Cars, we talk about the two options so you can choose the best option for you.

Leasing Pros & Cons

Leasing a car is like renting an apartment. You pay a monthly fee to use the car, but you don't actually own it. At the end of the lease term, you have to return the vehicle or opt to buy it at a predetermined price.

Here’s why leasing might be a good fit:

Lower Monthly Payments

Leasing generally comes with lower monthly payments compared to financing. This can be appealing if you're working with a tight budget but still want to drive a new car. For example, a compact car like the Toyota Corolla might cost significantly less per month to lease than to finance, making it an attractive option if cash flow is a concern.

Driving the Latest Models

Leasing allows you to drive a new car every few years. This means you can always have the latest technology and safety features without the hassle of trading in or selling your old car. For those who love staying current with automotive advancements, leasing offers the flexibility to upgrade more frequently without the hassle of having to sell first, then buy.

Maintenance and Warranty

Since most leases last between 2 to 4 years, the car is usually under the manufacturer’s warranty. This means fewer out-of-pocket expenses for maintenance and repairs, giving you peace of mind while you’re on the road.

The Downsides of Leasing

Mileage Limits

Leases often come with mileage limits, usually around 20,000 to 24,000 kilometres per year. If you exceed this limit, you could face hefty charges. For Albertans who love taking long road trips to the Rockies or frequent drives between cities like Calgary and Edmonton, this can be a significant drawback. However, an option, if within your financial means, could be leasing a car and financing a second car to have for those long trips. 

No Ownership Equity

At the end of the lease, you don’t own the car. You either return it or buy it out, often at a higher cost than if you’d financed it from the start. So, if you like the idea of owning your vehicle outright, leasing might not be for you.

NO Modifications

Most lease agreements prohibit modifications, including changes to the car's interior, exterior, or mechanical parts. The vehicle must be returned in its original condition, excluding normal wear and tear. If you make changes, you might be charged to restore the car to its original state. Additionally, modifications can void the warranty, leading to extra repair costs.

It’s best to contact your leasing company first. They may allow certain reversible modifications, like adding a new stereo system, as long as these changes can be undone without damaging the vehicle. Always get written permission to avoid any disputes later on.

Here’s why financing might better:

When you finance a car, you're essentially taking out a loan to buy it. Over time, you make payments that cover both the principal loan amount and the interest. Once the loan is paid off, the car is yours to keep.

Ownership

One of the biggest perks of financing is ownership. Once you’ve paid off the loan, the car is yours. This means you can drive it for as long as you want, sell it, or trade it in without any restrictions.

No Mileage Limits

Unlike leasing, financing doesn’t come with mileage limits. This is particularly beneficial if you drive a lot or plan on taking long trips. It’s your car, so you can drive it as much as you want without worrying about penalties.

Customisation

Financing gives you the freedom to customise your car however you like. Whether you want to add a new sound system, get custom rims, or slap on some decals or a roof rack, the choice is yours.

The Downsides of Financing

Higher Monthly Payments

Financing typically comes with higher monthly payments compared to leasing. This is because you're paying off the entire cost of the car, plus interest. If you're on a tight budget, this could be a significant drawback.

Depreciation

Cars depreciate, meaning they lose value over time. This is especially noticeable in the first few years. So, if you plan to sell the car shortly after paying it off, you might not recoup your investment.

What’s the Best Choice?

The choice between leasing and financing ultimately depends on your financial situation, driving habits, and personal preferences. If you like driving the latest models and want lower monthly payments, leasing might be the way to go. But if you prefer owning your vehicle and having no restrictions, financing is likely the better option.

Choose House of Cars for Financing

At House of Cars, we offer financing options to suit your needs. With our massive network of banks and lenders, we can secure you a loan with competitive rates for 1000+ used cars. Plus, we provide an easy online financing application that won’t impact your credit score to get a pre-approval, helping you estimate your rate quickly and easily.

Check out our inventory and let us help you find the perfect car with the best financing or leasing plan for you!

House of Cars is very excited to announce the launch of our new Home Delivery service. Complete your application online from the comfort of home, sitting at work, or anywhere you'd like. Our safe and secure process gets you financed and driving a new car in no time. Whether you're in Hinton, Edmonton, Red Deer, or Calgary, we will deliver any car, truck or SUV from our inventory directly to you.

1. Submit an inquiry using the Online Delivery option with our easy chat feature or sending an email to delivery@houseofcars.com

2. Our zero pressure Online team will reach out to you with preliminary information, help explore what you want to be driving next, and send you an application link

3. If you need financing submit your application, submit your documents, and get your car funded. If you're paying cash it's even easier!

4. Pay your deposit, get your trade in value, and schedule a delivery time

5. We do a final inspection on your new vehicle and deliver it to you anywhere in Alberta

Regardless of your credit, regardless of your budget, and regardless of your schedule, House of Cars is happy to find you a new vehicle you can be happy with.

As we all know, trends come and go, but one automotive segment that continues to thrive is the SUV. SUVs have become increasingly popular among car buyers due to their versatility, spaciousness, and off-road capabilities. While new SUVs are a hot commodity these days, there is an undeniable surge in the demand for used SUVs as well. House of Cars carries hundreds of pre-owned SUVs at its 15 Alberta used car dealerships, and we're ready to help you find the perfect one! First, let's explore why SUVs are so popular in Alberta!

Affordability:
One of the main reasons people choose used SUVs is because they are affordable. Buying a new SUV can be quite expensive, especially for popular models, or those equipped with advanced features. On the other hand, purchasing a used SUV allows buyers to get a vehicle that might have previously been out of their budget. Used SUVs experience less depreciation compared to new ones, making them a better long-term investment.

High-Quality Pre-Owned Options:
As the SUV market has been growing steadily over the years and more high-quality pre-owned options are available. Most modern SUVs come equipped with heated seats, heated steering wheel, moon roof, sunroof, ventilated seats, phone charging stations, entertainment canters and much more! Auto manufacturers have been producing durable and reliable SUVs, which means even used models tend to hold up well over time. Many pre-owned SUVs also come with extended warranties or certified pre-owned programs, providing buyers with additional peace of mind regarding their purchase.

Technology and Features:
SUVs manufactured in recent years come equipped with advanced technology and features that cater to safety, convenience, and entertainment. When purchasing a pre-owned SUV, buyers can still access these modern amenities at a fraction of the cost of a new vehicle. Features such as touchscreen infotainment systems, driver assistance technologies, and advanced safety features are commonly found in later-model used SUVs.

Proven Performance:
SUVs are designed to handle various terrains and weather conditions, making them highly versatile for daily commuting and adventurous road trips alike. When considering a used SUV, buyers can research the vehicle's history and performance records to ensure it meets their requirements. A lot of modern SUVs are at the top of the vehicle reliability charts; particularly Toyota, Lexus and Honda. House of Cars offers a free CARFAX Report with every vehicle for additional peace of mind. With extensive user reviews and data available online, making an informed decision has become easier than ever before.

Spaciousness and Practicality:
Families and individuals alike often opt for SUVs due to their spacious interiors and superior cargo space. This practicality makes them ideal for families with children, pet owners, outdoor enthusiasts, or anyone needing extra space for their activities or hobbies. As the demand for multi-purpose vehicles increases, used SUVs become a more attractive option for budget-conscious buyers.

Reduced Insurance Costs:
Insurance premiums are generally lower for used vehicles compared to new ones. SUVs are also usually cheaper to insure than cars. As used SUVs have a lower overall value, insurance companies typically charge lower premiums. This cost-saving benefit further enhances the appeal of buying a pre-owned SUV.

The popularity of used SUVs continues to rise as car buyers recognize the numerous advantages these vehicles offer. From affordability and advanced technology to spaciousness and proven performance, there are compelling reasons for choosing a pre-owned SUV over a brand-new one. Additionally, as the market for used SUVs grows, buyers have access to a wide range of models, making it easier to find the perfect vehicle to fit their needs and budget.

As you embark on the journey of purchasing an SUV, consider exploring the pre-owned market; you might just find the SUV of your dreams without breaking the bank. House of Cars offers unparalleled selection and ensures each vehicle passes a rigorous mechanical inspection. We also include a complementary CARFAX vehicle history report with every vehicle.

Start Your SUV Search Now:

When it comes to purchasing a used car, having good credit can make all the difference in the world. House of Cars offers a wide selection of pre-owned vehicles, at competitive prices, at our 15 used car dealerships across Alberta. However, understanding why good credit matters in the used car buying process is crucial for prospective buyers. Let's explore the main reasons why having good credit is essential when buying a used car at House of Cars dealerships, or any car dealership, in Alberta.

Access to Better Loan Terms:
Having good credit opens door to longer loan terms and better interest rates. Lenders & banks are more likely to offer lower interest rates to individuals with a solid credit history, resulting in more affordable monthly payments. This means you can enjoy owning a reliable used car without the weight of high-interest costs that usually accompany less favorable credit situations. With lower interest rates, you can focus on paying off the car loan quicker and potentially save money in the long run.

Wider Vehicle Selection:
House of Cars boasts an extensive inventory of over 1,000 quality used vehicles, ranging from economical compacts to luxurious SUVs and exotics. However, to have access to the entire selection, it's important to have good credit. A strong credit score assures dealerships that you are a responsible borrower, increasing the likelihood of being approved for financing on a broader larger list of vehicles. This way, you won't be limited to just a few options and can choose the car that best fits your needs and preferences.

Faster Loan Approval Process:
Buying a used car is an exciting process, but it can quickly become frustrating if the loan approval process is delayed due to credit issues. A good credit score expedites the loan approval process, reducing the waiting time significantly. With good credit, House of Cars' finance team can process your application more efficiently, allowing you to drive off in your dream car sooner.

Stronger Negotiating Power:
When you have good credit, you hold an advantage when it comes to negotiating the terms of your car purchase. Lenders and dealers may be more willing to work with you to find a suitable financing solution. With a stronger negotiating power, you can potentially secure even better deals and incentives on the used car, truck or SUV you desire.

Building Better Financial Opportunities:
Buying a used car at House of Cars and responsibly managing your car loan payments can further strengthen your credit history. Timely payments and financial responsibility demonstrate to future lenders that you are a trustworthy borrower. As a result, you will gain access to better financial opportunities down the road, such as lower interest rates on mortgages or credit cards.

In the end, having good credit when purchasing a used car at used car dealerships in Alberta is hugely advantageous. It not only grants access to better loan terms and a wider vehicle selection but also expedites the loan approval process and enhances your negotiating power. Additionally, with good credit, you can build a strong financial foundation for the future. So, if you're planning to buy a used car, take the time to improve your credit score and reap the numerous benefits that come with it. Happy car shopping!

What's Next?:

House Of Cars works with more than 20+ different lenders to provide automotive financing to our customers. We work hard to ensure your vehicle buying experience is as hassle-free as possible by providing you with unparalleled service with competitive finance rates.

With our exclusive credit rebuilding program, we can create a finance package that’s within your budget and tailored to your needs. When you purchase a vehicle from House of Cars, our team of finance experts will sit down with you and review your credit situation and will provide recommendations to help improve your credit and lower your payments over time. They'll send you home with a personalized plan, showing you exactly what you can do to get your credit score improving as early as your next credit card payment. We want to see you succeed, which is why we take the time to go over your personalized plan with you.

We often see our customers returning after a year or two to trade in their vehicle. When they come back, their credit situation is often a whole lot better and we can get them into an even better vehicle with a lower payment.

Our renowned Credit Rebuilding Program has been used by thousands of customers across Alberta. So once you’ve found the right financing option and started paying back what you owe in manageable installments, not only will you have easy access to the car that you want, but you’ll be building up and improving your credit score for the future!

As a result, we’re widely considered to be the very best place to buy a car with bad credit in all of Alberta. Visit one of our 12 Alberta stores or get in touch by phone or email today to learn more.

The best way to rebuild credit is to get yourself an installment loan. Some effective ways are through financing a vehicle or paying off a credit card. The key is to make your payments on time (this goes for phone and utility bills, as well). By being responsible with an installment loan on a vehicle, the credit bureau will keep track of your efforts and it will prove to the banks that you are trustworthy for future loans. Keep in mind, it takes both time and patience. Make a point to pay your bills on time, and you’ll quickly re-establish your credit.

Apply for financing here!

Did you know that House of Cars offers an automotive broker program to give more customers access to our inventory of over 1,000 vehicles?

We regularly work with customers from Calgary, Edmonton, Fort McMurray, Grand Prairie, Southern British Columbia, Saskatchewan, and other areas, to source vehicles and offer low monthly payments to them.

A lot of our out-of-town customers are looking for a specific vehicle, which we can help them locate, bring it in and then deliver to their driveway. That's right; it doesn't matter if you live 1,000km away, we'll deliver!

How does our broker program work? If you reach out to House of Cars, inquiring on a vehicle in our inventory, or a specific vehicle you're looking for, we'll get to work finding it for you. We'll send you photos, walkaround videos and more, via text or email, then we'll send you over all the documentation for your review and signatures. Once the documents are signed, we'll work with the customer on financing options, deposits and payment. We'll then inspect, detail and deliver the vehicle to your door and will collect final signatures from you upon delivery. It's as simple as that!

Did we mention that we can source any vehicle for you? It doesn't matter if we don't have it on out lot! We have 12 other dealerships we can pull inventory from and a network of auctions and wholesalers we can source inventory from, all across Canada. We can find you exactly what you're looking for, guaranteed!

Get started by browsing our inventory here, or reach out to our team to start searching for a vehicle now!

There has been a lot of discussion surrounding Canada's new luxury tax, which was implemented on September 1, 2022. We get a lot of questions from people asking if any of our inventory is affected by the luxury tax. In short, no.

All vehicles priced under $100,000 CAD are not subject to Canada's luxury tax. This makes up about 98% of our inventory.

We do, however, have a selection of inventory priced over $100,000 CAD, so what about those? Will those be subject to the luxury tax?

According to the Government of Canada, all new vehicles priced over $100,000 CAD are subject to a 20% tax for any amount the sale price exceeds $100,000. But that's only if the vehicle is built after 2018 AND has never been registered in Canada.

What that means is: If a brand new vehicle has never been sold before, it has also never been registered at a Canadian registry. If a car is pre-owned, it has therefore previously been registered in Canada. This means all of our inventory is NOT subject to the luxury tax! Weather you're looking for a Honda or a Lamborghini, when you shop at House of Cars, you don't need to be concerned about the luxury tax.

The only scenario where a car in our inventory would be subject to this tax would be if it was imported from another country, like the United States, and has a list price of $100,000 CAD or more.

Browse our entire inventory here.

How does financing a car work? When it comes to making large purchases like a home or a car, most people don’t have large sums of cash in their savings accounts just waiting around. But if you do in fact have thousands of dollars tucked away somewhere, then there is a clear benefit in putting it towards your car purchase. But there's also benefits to keeping that money in your pocket.

The main benefit of a cash purchase is that you get to avoid paying interest.

If you have the money ready to purchase a vehicle, it might seem like a no-brainer to pay outright and avoid the interest charges, but it’s not always the best option.

The biggest advantage of financing a vehicle purchase versus paying cash is that you can buy the car now without paying a single dollar upfront. 

So what does financing a car mean? Simply put, financing a car means borrowing money from a bank to pay for your vehicle purchase and paying the bank back in manageable installments. House of Cars can offer zero money down payment options*, which are quite popular simply because a lot of people either don’t have the money to put down or have a better use for their savings. Intrigued? Read on!

For the average car buyer, a car loan opens up more vehicle options. When you’re able to borrow the money and pay it back over a manageable period of time, it gives you the opportunity to buy a car you may not have been able to afford if they were paying cash. That Honda you were looking at paying cash for could become a Mercedes-Benz!

But even if you have the savings to pay for that nicer car in cash, financing can be the better decision for multiple reasons:

1. Rather than spending your cash on a car, you can use that cash to invest in other opportunities that will see the money grow, like investing in real estate or investing in stocks, mutual funds or EFTs. The money you make from your investments very well might cover the cost of your monthly car payments, or at least a portion of them! To be rich is to afford a nice car. To be wealthy is to be able to use the same money to invest and afford that same car using the proceeds of their investments.
2. Rather than put all your free cash into a car purchase, it’s important to have enough savings to pay for an emergency expense such as a home or car repair.
3. Buying a car with zero down payment can also free up your income for other debt obligations with higher interest, like high mortgage payments, lines of credit or credit card debt.
4. Did you know that we can often find our customers an interest rate that's cheaper than the interest rate of a line of credit?*

Being smart with your money certainly has its advantages! Keeping your money in your pocket and leveraging it to make more money is the smarter decision than putting it all towards a vehicle, which will lose value over time.

If you decide to pursue financing, it’s best to choose a monthly payment that is manageable for your budget. We can offer auto financing options for every budget. Check out our car loan calculator for a rough idea of what your monthly instalment could look like.

If you’re not sure what amount you can get approved for, you can get pre-approved before you even start the financing process. House of Cars can help you get pre-approved and connect you to dozens of $0 down lenders. Apply with us for free in just a few minutes!

*On Approved Credit

Contrary to popular belief, selling a used car is a rather accessible procedure. Anybody can pull it off successfully. Albeit, some prior personal experience can indeed tip the scales towards your favor. But realistically speaking, everybody has to start somewhere.

And that might happen to be your case right now.

First and foremost, if this is your first time buying a car, do not worry. It’s normal to be overwhelmed by the sheer amount of technicalities you’ll soon be dealing with. But you only need to understand them properly to overcome them. In due time, you’ll be an expert yourself.

So, in order to ease that transition, here we present you with some key terms that you’ll often see. After a quick study, you’ll see how the bigger picture will be easier to understand.

A glossary of car loan terminology

As expected, applying for a loan will involve signing on a lot of documents.

While it might be tedious, therein lies a great benefit for you. Since those documents will have to be written in a universal language (legally speaking), you’ll see that some terms are repeated time and time again. Regardless of who your loan provider is.

That alone will facilitate the learning process, since there isn’t a need to memorize an encyclopedia’s worth of knowledge.

Worst-case scenario, you’ll get minimalistic variants now and then. But believe us, the context will make it clear enough for you to correlate it to the terms you do know. Without further ado, let’s begin.

• Title

Literally speaking, the legal document which states the current owner of the vehicle. For all intents and purposes, it is issued by the DMV.

• Principal

By principal, any lender would be referring to the amount of money being borrowed. Keep in mind, this would be the given amount before adding any interest costs, potential penalties, among other costs. In a way, you could say it’s the “original and unaltered” amount.

• Interest rate

The amount of money you’re to be charged with for your loan. Think of it as the fee for the given services added on top of the amount you initially borrowed. It tends to be shown as a percentage.

• Annual percentage rate (APR)

To start with, you should know that interest rates and annual percentage rates are two different things.

Throughout your loan, you might get to see some instances of additional interest fees or even discounts. When compared to the interest rate, the APR is a percentage that has already accounted for that. The interest rate itself hasn’t.

Think of it as the “truest” form of interest rate. One that will tell you how much you’re to be charged every year, but in significantly more detail.

• Term

The amount of time you're given to pay back your loan in full.

• Total cost

As the name suggests, this is the final amount you’ll have to pay back by the end of the term. It has already considered all possible alterations to your payments and has summed it all together to your principal.

The total cost tends to remain the same over the years and is dealt with in your local currency.

• Upfront costs

Lots of lenders will require you to pay a few months in advance before validating your loan. These required fees are known as upfront costs.

• Down payment

Similarly, some borrowers may agree to pay a part of the amount right at the beginning of their term. If their lender agrees to it, this will allow for the monthly payments to decrease.

The payment itself is what’s known as the down payment.

• Prepayment penalties

While the idea of paying back your loan earlier than planned might sound appealing, it shouldn’t ever be your first course of action. Paying back your loan earlier would limit the amount of interest you have to pay. As in, your provider would not be getting their total share of the deal.

For those reasons, lenders tend to assign penalties in the form of additional fees. This way, they’ll recover a fair amount of what they lost. Knowing what’s at stake, you should take the time to understand whether this might apply to you.

• Default

The general term is used to describe any instance of a borrower violating the terms and conditions of their contract. For the most part, it tends to be used for those who have missed out on a monthly payment. If not several.

Put your knowledge to the test at House of Cars Calgary!

Look at you! By now, you should already be an expert in asking for a car loan. Now comes the time to transfer that knowledge into practice.

For those reasons and more, House of Cars Calgary is there for you! Not only do we provide the very best selection of pre-owned cars for sale in Calgary, Alberta. But also the best services when it comes to car financing.

At House of Cars, we believe that everybody deserves to drive out of the lot with the car that speaks to them the most. And not even bad credit should get in the way of that.

Contact us today to learn more!

If you recently received a bad credit score or are starting to build your credit history and want to know more about it, this blog post is for you!

One of the biggest myths in the used vehicle industry is that only people with good credit history can be approved for used vehicle loans.

When talking about bad credit scores, some people think that they will never be able to acquire financing.

Buying a car can be seen as exciting or a chore, depending on your liking for cars and your view of them. If you’re a first time buyer, however, it’s likely to be a challenge due to your unfamiliarity with the process. Nevertheless, your first car will give you freedom and independence that you don’t have if you’re relying on others or on public transport, so look forward to a good outcome.

Like anything that’s worth doing, planning and preparation are essential to get the best result. So here are a few tips to point you in the right direction.

Decide What You Want

Although you might fancy a sleek and sporty model, that probably isn’t practical, especially for your first car. Instead, assess what you want it for — how often you’ll use it, how many miles you’ll do, who and what you’ll carry in it.

You want something that’s reliable and practical with all the features you need. Don’t pay extra for features you’ll hardly ever use and can do without but don’t omit features you’ll regret not having. Above all, don’t buy a car you can’t afford to insure, maintain or repair because premiums will be high for a novice driver.

If it’s your first car, you’re unlikely to be buying new. The cost may just be too much and new cars lose a lot of their value as soon as they leave the showroom. A better option is a relatively modern used car that will have all the up-to-date features and still have plenty of useful life in it.

Decide What You Can Afford

Buying your first car can be an expensive business so make sure you don’t take on costs you can’t meet. Before you even start looking at cars, create a budget so you know what you can afford to spend.

Since this will be your first car, you won’t have one to part-exchange and so will need cash for a deposit. You’ll need to determine what you have to spare without leaving you short when something unexpected comes up.

It’s unlikely you’ll be able to pay cash for the car so finance may be the only option. If you’re young and haven’t built up much of a credit history, getting a loan might not be easy but will be more likely if you have a parent as a guarantor.

If you can get a loan, budget carefully to see what you can afford to repay monthly. Take account of all your living expenses, including food, accommodation, utilities, insurance and entertainment. And don’t forget you’ll have extra costs when you get the car — fuel, insurance and repairs as well as the loan repayment.

Do Your Research

Once you’ve decided on the type of car you want, investigate it thoroughly. There’s plenty of information available online so there’s no excuse for not knowing lots about the car before you buy it.

Read all you can to see descriptions, specifications, features and options. Look at reviews, both professional and independent, so you can find other people’s views of the car. And make sure you know the recommended price of a car with the age and condition you’re after.

Inspect and Test

No matter how much research you do online, that’s no substitute for actually seeing and trying out the car. Look at the condition of the bodywork to check for scratches, bumps and rust. Also check the interior since that will tell you how well the car’s been looked after. The engine and mechanics will be more of a challenge, especially as a first time buyer, so take along with you an adult who knows about cars.

The test drive is particularly important since it will tell you if the car really is the one for you. Make sure the driving position is comfortable and adjust the seat and steering wheel until they’re right. Check the position of the controls, how the car feels to drive, all round visibility and how everything feels. Although you can adapt to many things in a car, it’s better if they’re right to start with.

The Negotiation

This can be the most nerve-racking part of the purchase because you’re an amateur and the salesperson does it every day. However, if you’ve prepared thoroughly, you can approach it with confidence.

The salesperson will be aiming to get as high a price as possible while you’ll want to keep the cost low. In effect, you’ll probably end up somewhere in between.

Although the salesperson may talk about the cost in terms of dollars per month, you want to know the total price including and excluding finance costs. And if you have already negotiated a loan, you will be in a stronger position and able to use that or the showroom’s deal if better.

Try to keep it simple by first negotiating a price and then talking about finance. And don’t be pushed into buying unnecessary extras that will add to the cost without providing much benefit. If you do things properly, you’ll end up with the car you want at a price you can afford.

We all need to borrow money at some time, whether it’s for a major expense such as a house purchase or a new car, or something more modest. When you apply for a loan, your credit score is assessed every time to see if you’re suitable.

If your credit score isn’t great, the amount you can borrow may be reduced and the interest you’re charged may be greater. If it’s really bad, you may not get a loan at all and the same applies if you want a credit card. It’s really important, therefore, that your credit score is as good as it can be, so we’ll give you a few tips on how to improve it.

The credit score you have can improve reasonably quickly if you go about it the right way. However, it’s not something you’re going to achieve overnight — around a year is realistic to get it in really good shape, although you can make some improvements much quicker than that.

Obtain and Check Your Credit Score

If you’ve never seen your credit report, you’ll have no idea what your credit score is and so won’t know how potential lenders view you. The two biggest credit bureaus are Equifax Canada and TransUnion Canada, and you can get a free copy of your report through the mail from either of them by supplying some basic information. This may take a few weeks and you can get a copy online immediately, for a small fee, if you need it quicker.

Once you get your report, check it thoroughly for problems and to make sure it’s correct. If you do find any errors that reflect badly on you, get them corrected without delay. You can do this by contacting the credit bureau and explaining the situation although, if you want it done quicker, the creditor that caused the error may be a better option.

If you see any old outstanding bills on your report, get them paid without delay. No matter if they’re only for a small amount, they’ll still damage your credit score, so make sure they’re paid and removed from the report. The overall aim is to tidy the credit report and remove anything that’s damaging.

The credit score shown on the report is the one that all lenders look at and, the higher it is, the better your prospects of getting a loan or credit card at a good rate of interest. Your aim is to get this score as high as possible.

Establish a Good Credit History

Anyone who’s never borrowed money or had a credit card will have no credit history. That means a lender won’t have a score to look at when deciding whether to lend money. In this situation, you need to create a good credit history without delay.

The best way to do this is to borrow money, have some sort of debt or have a credit card and make sure all payments are made on time. Late and outstanding payments must be avoided as these damage your credit score (around 35% of your score is based on your credit history).

If you’re in a position where you can’t get a credit card or loan, a secured credit card might be the answer. To obtain one, you’ll need to make an initial deposit but can then use it like a normal credit card. The more you use credit, the more of a credit history you’ll build up and potential lenders will be better able to see how you perform. So make sure you perform well by always paying on time.

Stay Within Your Limits

The aim is never to go overdrawn on your bank account, never to have overdue payments and to stay within your credit card limit. To do that, it’s best to budget your income and spending, so you know your future prospects, and then make sure you don’t overspend.

As regards keeping within your credit card limit, the lower the better is recommended. As a general rule, never go above 70% of your credit limit, so you always have something in hand. Keeping it to about 30-35% of your limit is even better because it shows you’re financially responsible and will help your credit score.

Limit Your Credit Applications

Credit enquiries account for around 10% of your credit score. So, each time you apply for credit or check credit availability and rates, this will count against you and lower your credit score. It’s best, therefore, to limit your credit enquiries.

Having said that, since these enquiries account for a relatively small proportion of your overall score, they’re not the most important item of concern. It’s better to look around and get a good loan interest rate rather than accepting the first offer because you’re worried about your score.

Ensuring Your Credit Score Remains Good

Once you’ve improved your credit score, make sure you keep it at a high level. It’s all about being sensible, living within your means and paying attention to detail.

When you know your score and understand how it’s affected, that’s a lot simpler. And having a good credit score will mean that loans and credit cards are easier to obtain and more affordable.

If you have a lot of questions or concerns about your credit score, or are unsure how to obtain one, contact us at House of Cars or simply drop by. We'll be happy to pull your credit report for free and go over it in detail with you as well as help you put together a long term plan for credit score improvment.

STOCK#: 3354-3
VIN#: 1C4PJMBS3FW735773
KM: 69,745 PRICE: 27, 800
??Call: (403) 457-2244
?Location: House of Cars Macleod Trail: 3909 Macleod Trail South

Justin Liscomb with House of Cars Macleod - 3909 Macleod Trail South with a 2015 Jeep Cherokee Trailhawk.

It has 70000 km on it she's only listed for 27, 800 I'll show you guys some features that the lower trim levels don't have on it to come stock.

• The first thing you see here are the 17 inch black chrome wheels that comes stock on the Trailhawk, as well as all this under body here has multiple multiple added protection for off roading.
• Now if you come around the back here you're gonna see that this is actually a rear differential towing package system, so that comes stock on the Trailhawk as well, very good.
• Inside the vehicle. The first thing you're going to notice on the Trailhawk is that the seats are embroidered with Trailhawk, as well as they have the prep rated seats.
• Now, if you look at the mode here, it comes with standard modes like snow, sport, sand and mud. Rock mode is actually just stock on the trail hawk and that's so you can get a 32 degree angle when you're climbing those Hills.

3909 Macleod Trail South. This is the Trailhawk. Who's going to come and take a test drive?

Let's face it, life happens and sometimes it affects our credit.

Now you are in need of a new car and dreading the whole loan process.

Believe it or not, there are many options for people with less than perfect credit. You simply need to know where to look for lenders who offer subprime auto loans.

If you're searching for a car loan, but don't think you will qualify for financing, you are not alone.

Continue reading to see what may be available to car buyers who have bad credit.

What are Subprime Auto Loans?

Financial institutions recognize there is a portion of the population who has had setbacks. Whether it is a downturn in the economy, loss of employment, illness or divorce, people are unable to repay debt that ultimately affects their credit score.

Lenders have come up with ways to assist those with poor credit. It is called subprime loans.

These loans come with higher interest rates and the car becomes collateral to ensure repayment of the loan. Despite these terms, it is a good way to rebuild your credit.

Who Is Eligible For a Subprime Loan?

In the banking industry, there are three levels of loans for people with bad credit. The bracket you fall within is based on your credit score.

Before beginning your car search, retrieve your credit report from all reporting agencies; i.e. Equifax and TransUnion. If you don't want to pay for your report, they do offer one free report each year.

If you are looking for an auto loan, dealerships like House of Cars share your credit information with you and walk you through it to help you consolidate your credit.

How to Contact the Credit Bureaus

• Equifax - www.equifax.com. P.O. Box 740241. Atlanta, GA 30374-0241. 1-800-685-1111.
• TransUnion - www.transunion.com. P.O. Box 1000. Chester, PA 19022. 1-800-916-8800.

Prime Loan Categories

Nonprime loans are for borrowers with less than perfect credit but are seen as a better candidate to extend credit to. A person with a score of 600 or higher is more likely to secure a non-prime auto loan.

Subprime auto loans are for those who fall in the mid-range of the credit score chart. This would place the borrower below 600, but not within the last category.

Deep subprime loans are for borrowers who have the lowest credit scores. These scores are typically below 400. However, they could encompass those whose scores are little higher.

Different lenders will have their own credit score ranges. It is important to seek one who will be favorable to your specific circumstances.

Research Possible Lenders

All lenders are not created equal. Do your research and make sure you choose a lender that reports your payment history to the credit bureaus listed above.

Check with the better business bureau and look for online reviews of each company you contact before accepting an offer.

A lot of subprime auto loans are initiated at "buy here pay here" dealerships. Read the fine print before signing any contract. Make sure there are no hidden clauses that could cause an undue burden.

These are real loans that must be repaid according to the terms of the contract.

Using a Subprime Loan to Rebuild Your Credit

The damage has been done to your credit, and the best thing to do is try to rebuild your credit score. To do this, you must be committed to paying your bills on time.

The longer you stay on track and keep up with payments, the faster your credit score will climb. Some simple ways to do this is by not biting off more than you can chew.

When most people head to the car lot they have hopes and dreams of buying a brand-new car. For a person with damaged credit, this could be a huge mistake.

Consider scaling down your expectations and going with a less expensive used car. Keep in mind that your interest rate will be higher due to your credit history. Purchasing a less expensive car will help lower your monthly payment.

A less expensive used car can also play a role in your car insurance. Your credit score will determine the rate you pay.

A Down Payment May be Required

Some lenders may require a down payment for your car purchase. This could be 10 percent of the sticker price, or more.

The down payment will have little effect on the interest rate that you receive. However, it will lower the amount of the loan.

If you're able to save for a bigger down payment, it may be worth the sacrifice.

Don't Lose Your Investment

Rebuilding your credit is a process. You didn't ruin it in a day, so you won't be able to rebuild it overnight.

Taking out subprime auto loans is a second chance opportunity that comes with demands that a regular car loan does not. Because you are a high-risk consumer, the dealer has to take extra precautions to secure their asset if you're unable to repay the loan.

It's possible that your vehicle will be equipped with either a GPS tracking device or what is called a starter interrupter. Your vehicle could also be equipped with both.

Build a Relationship with Your Lender

Subprime lenders are familiar with your circumstances. They're in the business of helping people who have a history of financial hardship.

Be honest with your lender if you are facing a temporary financial setback. They may be able to work with you and offer options for you to keep your vehicle.

Working with your lender is better than having your car repossessed at your job or while out with family or friends.

Was this Information Useful?

Financial decisions give us a lot to think about. Being without a car can cause additional hardships. Entering into a bad loan will only make matters worse.

We hope that the information provided will help you choose an option best suited for your needs.

If you're seeking extra information on subprime auto loans, House of Cars is here to help. Our specialty is getting people with blemished credit back on the road.

For more information contact us today.

If you're looking into buying a used car, it's not always easy to know if you're getting a good deal.

Each car has its own history. The last thing you want is a jalopy that's been in five wrecks. Then there's getting fair used car rates. You have to be smart, but the whole process can be confusing.

Don't worry, we can help.

Let's take a look at how to get the right used car for you at the right price.

Finding the Right Car At Fair Used Car Rates

When trying to find the right car, do some research before you make a decision.

Look at used cars online. Check out local dealers too. If you have a particular type of car in mind, read reviews about the make and model before making a decision.

Larger dealers often have more of a selection, making it easier to find the right car.

With dealers such as House of Cars having their inventory online, you can search for used vehicles and compare.

Taking a Test Drive

Never buy a vehicle without first taking a test drive. Listen for little noises or rattles that sound abnormal.

Check to see if the car shifts easily. Make sure the air conditioning and heating work well. A grinding noise might indicate a worn compressor.

Drive with the radio off and on. Check to see if the speakers work too. As you drive, test the vehicle on the city streets and the highway, and make sure the brakes work well.

Don't overlook the seatbelts, power seats, and power windows. Check the lights, headlights, brake lights, and blinkers.

Look at the engine and check all the fluids. Look at the tires and test the air pressure. Don't just rely on the seller's knowledge.

You don't want to miss something that will cost you more money down the road.

Sometimes buying from an owner can bring mechanical headaches down the road. Play it safe by going with a dealer that mechanically inspecs their vehicles before reselling and offer warranty options.

Checking for Flooding

Thousands of cars are flooded each year due to storms, something to keep in mind if you're buying a new car.

These flooded cars could end up anywhere. At first glance, you may not see the signs of flood damage, unless you know what to look for.

Search for visible water lines inside the car, on the engine, and on the wheel wells. If you're not sure, have a mechanic inspect the car on a lift.

Look for new carpeting or upholstery. People don't normally re-carpet a car unless it has been damaged.

If you smell a musty or moldy scent, it indicates water has been in the car. Look for rusted metal under the seats. A wet air filter indicates water damage as well.

Play it safe by asking for the vehicles CarProof. Dealers such as House of Cars offer free CarProof on all vehicles.

Used Car Financing

The financing of a used car depends on whether you buy from a dealer or a private individual. In most cases, a bank won't finance a car if it's older than 5 years.

You will pay approximately 2% more when financing a used car than when financing a new car. An excellent credit score will help you get the best interest rate possible.

If your credit is poor, you may want to take steps to improve it before getting a car, but there are options. House of Cars accepts good and bad credit as well as offers credit rebuilding programs so you can buy the vehicle of your dreams down the road.

Finalizing A Deal

Once you have your final price, and you feel confident about the sellers' used car rates, you're ready to seal the deal.

If you are buying from an individual and are paying cash and there are problems later, you may not be able to get your money back. Instead, pay with check or credit card. You want to have a paper record of the transaction in case potential issues crop up.

If you buy from an individual, problems can arise if the owner still owes money on the vehicle. In this case, you must have a written agreement granting you the title once the car has been paid off.

Extended Warranty

Whenever you buy a used car that is not covered by a manufacturer's warranty, you are responsible for all repairs. If you want to save money, consider buying from a dealer and opting in for extended warranty for your used vehicle.

Make sure you understand exactly what the extended warranty will and will not cover.

Again, doing your homework pays off.

Get the Best Deal

You want to make sure you are getting the vehicle you really want at fair used car rates.

If you are in the process of looking for a quality used car, truck, or SUV, or if you have questions, we'd love to help. Check out our inventory and contact us today.

Finding the perfect used car is a big task. You've spent hours searching online listings and test driving different makes and models until you finally find the one that fits your needs. Now the question is, how do you get the best used car loan rates for financing?

No matter how perfect the vehicle, it's important ask questions and shop around so you get the best loan rates.

Never agree to a bad financing agreement just because you've fallen in love with your car selection. There are cases where your interest rate may seem high, but this could be due to your credit. If you've ever been stuck in a high-interest car loan, you know how much it impacts your monthly budget. Be sure to ask questions about the reasons behind the high rate and assure it is something you can afford.

In this article, we'll take a close look at how you can pay as little as possible for your financing while still landing the car of your dreams.

Now, let's dive in.

Things to Consider Prior to Applying for Your Car Loan

There are a few important things you need to look at before applying for that new car loan.

First, you want to be very familiar with your personal credit report. Know what your credit scores are and understand what your overall credit situation is. Banks and private lenders may approve you with bad credit, but know that your interest rats will be higher.

Most importantly, know what you can afford each month within your budget. What will your monthly payments be?

Recent data from Experian shows that the average price of a used vehicle is at an all-time high of $19,329. The study also shows that the average credit score for buyers of used cars is 643. On average, these buyers land a car loan rate of 9.17%.

If you have excellent credit you may be able to secure a loan for as low as 2%, up to around 5-6%. On the opposite end of the credit spectrum, buyers with very poor credit scores should look to pay high rates.

Where do you fall in the credit spectrum? It's important to know this before you start applying for loans.

The good news is, after a few months or a year of having the vehicle, and as you rebuild your credit, some dealers such as House of Cars, may allow you to refinance for a lower rate.

What Do Lenders Look For When Setting Used Car Loan Rates?

Of course, your credit score is at the top of the list when it comes to approvals/denials and what interest rates are set. Dealers like House of Cars approve any type of credit history/score, but rates will depend on your current situation.

Beyond that, you can expect that lenders will look closely at:

• Your payment-to-income ratio
• Your personal debt to income ratio
• How much money you're putting down on the vehicle

Lenders want to make sure you can comfortably afford the monthly payment that'll be set on your loan.

A lender will also look at the loan to value of the vehicle.

If you're not familiar with the loan to value math, it's the amount of your loan divided by the value of the vehicle you're buying. The best way to lower your loan to value is by putting the most money down that you can. An online auto finance calculator can give you an estimate.

Shop Around First

Explore financing options on your own first before you head into the dealer. See what kind of financing you can get on your own, then find out if the dealer can meet or beat it.

When you're shopping around for the best used car loan rates, pick a reputable dealer before applying.

If you do a few applications today, then wait a few months and start applying again, it'll most likely count as multiple inquiries. This can affect your credit score.

Private Landing

Some prefer private lending vs bank loans for various reasons.

Private lending may offer more flexibility or approve when a bank disapproves. If you prefer private lending options, find a dealer that offers this, such as House of Cars.

Indirect Lending

The other type of used car financing is referred to as "indirect lending". This is where a car dealer has a network of lenders they work with. They use this network to arrange the best financing for your car.

One huge advantage to indirect lending is that dealers such as House of Cars have access to many more lenders that you probably don’t.

Because there is such a huge amount of indirect lenders the dealers work with every day, their rates are very competitive. Often this will result in very low interest rates for you and a lower monthly payment.

Negotiate the Price of the Car

You're looking for the best overall deal, right? That being the case, it's best to focus on the price of the used car. While at the dealership, don't negotiate your monthly payment but instead focus on the sale price of the car.

If they can give you a great deal, then take it. Meanwhile, you've also gotten the best possible price on the car.

Check For Certified Pre-Owned

When looking for the best used car loan rates, consider looking at certified pre-owned (CPO) cars.

CPO cars are late-model used cars that go through an inspection process that is very rigorous. They'll also typically include some sort of manufacturer warranty.

They are packaged with manufacturer incentives which help you secure the best interest rate on your car loan.

Currently, deals on CPO's boast low rates. On top of that, manufacturers often offer free maintenance or payment credits on CPO's that'll save you even more money in the long run.

The Best Used Car Loan Rates are at Your Fingertips

Remember, it's always best to do your own research when you're looking for the best used car loan rates on the market. However, keep an open mind when you're at the dealership.

Always know what payments you can afford.

If you haven't found that perfect vehicle yet, we've got an amazing used vehicle inventory you'll definitely want to check out.

Of course, we can help get you the best financing rates as well when you apply. Good luck with your search. We hope to serve you soon!

We all know the buzz surrounding new vehicles: the latest features, top performance, etc. What they leave out is that you have to pay top dollar for that top performance. So if you're thinking about leasing a new vehicle, here's why you should buy a used vehicle in Calgaryinstead.

• Affordability: While lease payments tend to be lower than new vehicle loan payments, they still don't match the affordability of buying a used vehicles.
• Restrictions: When you lease a new vehicle, the dealership and/or financial institution still owns it. So they're going to give you restrictions on how many kilometers you can drive every year, and you won't be allowed to accessories or make any changes to the vehicle. When you buy a used vehicle instead, you own it... so do whatever you want!
• Reselling and Trading: When you own a used vehicle, you're free to resell it or trade it in at any time. When you decide you're ready for a change before your lease is up, you'll either have to wait, or pay extra to get out of your lease early.

Sounds like buying a high quality used vehicle from House of Cars is the much better option. So start browsing our extensive used vehicle inventory. And when you're ready, use our online finance application to get the finance process rolling. In the meantime, come in for a test drive!