Alberta Car Program

If you stay in Alberta, it is essential to get a car for easy movement, one of the easiest ways to get a car in Alberta is through car loans. There are many options for you to explore from online lenders to banks and dealership financing.

However, you will need to compare the terms, interest rates, and fees to get the best option that suits your finances.  In this piece, we will discuss how car loans work in Alberta and how you can successfully become a car owner with the right information. Read to the end.

Interest Rates on Car Loans in Alberta

Interest rates may not be a stable figure and some factors can influence interest rates such as a credit score. The average interest rate in Canada is 8.09% but in some cases like a bad credit score, the interest may be higher. You should be aware of the factors that can influence interest rates on your car loans in Alberta. They include;

  • Income
  • Credit score
  • The length of the loan term
  • The amount of debt you repay each month

Find Car Loans in Alberta

Here are options for you to get a car loan in Alberta;

Dealership Financing

It is one of the easiest and most convenient ways to get your next car. There are different options for good and bad credit scores and the loan term can be up to 6 to 7 years. However, you might not be able to compare a lot of choices or options.

Online Lenders

Online lenders are also available in Alberta. The good side is that these lenders have more relaxed loan terms than traditional lenders. Some online lenders specialize in car loans with bad credit. There are many dubious online lenders, you need to do due diligence to ensure you are working with a genuine one.

Credit Unions and Banks

You will need to apply with your bank or credit union to get pre-approved for a Canada car loan. Many financial institutions offer car loans in Alberta, you need to compare many options to choose the best. Keep in mind that banks, financial institutions, and credit unions have stricter terms and conditions and you may need good to excellent credit scores to qualify.

Online Brokers

These brokers allow you to compare different loan offers with a single application. They can help you get loans tailored to your financial situation. Sometimes, they help secure car loans for an individual with a bad credit score.

Secure the Best Car Loan in Alberta

The following factors will help you determine the best car loan in Alberta

Fees. Enquire if there are some fees attached to the car fees like down payment, late payment penalties, and prepayment fees.

Interest rate. This is the major factor in determining if you should take a particular car loan. Some lenders have higher interest rates while some have affordable ones. You should check the annual percentage rate for an accurate view.

Loan term. A longer loan term means a smaller monthly repayment amount. However, that means you may pay more interest in the long run. Choose a loan with a monthly repayment that you can afford so your credit score will not be affected and ensure the interest rate is also kept at a minimal rate.

Down payment. Although some lenders do not require a down payment, some demand a 10 to 20% down payment. Ensure you can afford the price of the amount you need to pay upfront.

Repayment. This is a major factor to consider. Check the regular repayment time whether weekly, monthly, or daily, and what the regular amount will be. You should carefully evaluate if the loan repayment will be convenient for you.

Carefully select a lender, conduct due diligence on all options, and ensure you also read reviews of lenders.

Can You Get a Car Loan with a Bad Credit Score in Alberta?

Yes. In Alberta, with a bad credit score, you can still get a car loan but you won’t get one with financial institutions or credit unions because they have stricter requirements and terms. You can look into online car lenders or compare lenders.

Here are some lenders that offer car loans with a bad credit score in Alberta


It provides a platform that helps you easily finance a car and have it delivered to you. However, you may be limited to their network of dealers and may not have many options to compare. They match you with a third-party lender. They also charge higher rates on bad credit loans.

Loans Canada

They find multiple lenders that you can be matched with within a single application. It might not be the best option for you if you prefer a direct lender.


The platform allows you to apply easily and quickly. The service provides a list of pre-approved lenders and you can compare lenders. However, there are high rates of bad credit.

Most lenders that are willing to work with a bad credit score examine other factors like income or any other existing debts to decide if you can repay the loan. Keep in mind that there are illegitimate bad credit lenders and some have fallen prey. Do your due diligence to ensure you are dealing with a reputable lender before you share your personal information.

What Credit Score Will You Need to Get a Car in Alberta?

Lenders have different required credit scores, financial institutions, banks, and credit unions will require good to excellent credit scores which means a score of about 660 or more. Online lenders work with fair credit or bad that may be below 550. If you do not have a perfect credit score, you can still get a loan.

Bottom Line

Like a standard loan, you can purchase your next wheels easily with a car loan. You can make smaller monthly payments. Ensure you do your due diligence on lenders to get the best car loan program in Alberta. Congratulations on getting your next car in Alberta!