Car parking lots are an important object class in many traffic and civilian applications. With the problems of increasing urban traffic congestion and the ever increasing shortage of space, these car parking lots are needed to be well equipped with automatic parking Information and Guidance systems. Goals of intelligent parking lot management include counting the number of parked cars, and identifying the available location. This work proposes a new system for providing parking information and guidance using image processing. The proposed system includes counting the number of parked vehicles, and identifying the stalls available. The system detects cars through images instead of using electronic sensors embedded on the floor. A camera is installed at the entry point of the parking lot. It captures image sequences. The image sequences are then analyzed using digital image processing for vehicle detection and according to the status of vehicle occupancy inside, real time guidance and information is provided to the incoming driver.