Auto Financing Glossary

Name: Shift Happens Auto Sales
Address: 59 East Lake Crescent NE, Airdrie, AB, T4A 2H5, CA
Telephone: +1-825-736-4438
Price range: CAD $20,000 - $45,000
Rating: 5.0

Every term your lender uses — explained in plain language. Written for Alberta car buyers navigating bad credit, subprime loans, and dealership paperwork.

Amortization—The schedule of equal monthly payments that gradually pay down principal and interest over the loan term.
APR vs Interest Rate—APR includes the interest rate plus mandatory fees; it is always equal to or higher than the stated rate.
Bankruptcy Trustee—A federally licensed professional who administers bankruptcy filings and consumer proposals in Canada.
Consumer Proposal—A legally binding agreement filed through a Licensed Insolvency Trustee to repay a portion of unsecured debt.
Cosigner—A creditworthy third party who signs the loan agreement and accepts full legal responsibility if the borrower defaults.
Down Payment—The cash contributed upfront toward the vehicle price, reducing the amount you finance.
Loan Term—The length of time you have to repay the loan, measured in months — typically 60, 72, 84, or 96 months.
Loan-to-Value Ratio (LTV)—The loan amount divided by the vehicle value, expressed as a percentage. Subprime lenders cap LTV at 110–130%.
Subprime Auto Financing—Auto loans for borrowers with damaged, thin, or no credit — typically carrying higher interest rates than prime loans.
Trade-In Equity—The difference between your trade-in vehicle's appraisal value and the outstanding loan balance on it.

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Bad Credit Car Loans in Alberta — how we work with every credit situation
Our Lender Network — the lenders behind every approval