Buying Your Next Car in St Louis Is The Same As Planning a Holiday Travel

Think about the procedure of planning a holiday travel. Making a budget, researching for a suitable destination, comparing various places of accommodation and finally purchasing a travel package that fits your budget are the steps that guarantee a successful holiday travel. Now, when you think of it, buying a car is not very different. Equal planning is required for buying a car as well as planning a holiday travel. When considering buying a car in St. Louis, the options are plenty. The city of St. Louis is home to approximately 315, 685 people, making it the 4th largest city in the United States of America. With a population that huge, it becomes easy to choose a car because your options of buying a used car or a new car never wane out.

So how to plan buying your car in St. Louis that can be as simple as planning a Holiday Travel?

1) Research – The Stepping Stone

Always start with research. Preparation is vital for choosing a car that fits your requirements. St. Louis has different cityscapes like the metro area that houses corporations such as Edward Jones, Go Jet and Boeing Defense. Another part of the city is home to fancy restaurants and architectural spots such as the 192 meter tall Gateway Arch. The decision to buy your car will depend on the geographical fit of your car and the part of the city that you live in. So, be it for a suitable destination of a holiday travel or your next car in St. Louis, research becomes imperative.

2) Comparison – Be a Smart Car Buyer

Just like a holiday travel, once you have decided on the budget, the next step is comparing your options. It is always a good idea to get an auto loan before you make an actual purchase of the car. Many dealers in St. Louis offer various auto loans to suit your needs such as bad credit auto loans, no down payment auto loans and guaranteed auto loans. Before making a decision, make sure that you have shopped around and compared all your options. A good credit score, a shorter loan term and a hefty down payment will help you to secure the best auto loan option in St. Louis.

3) Selection – Used Car Vs. New Car

After getting approval for an auto loan, the final step is to select a car. As compared to a hotel accommodation, a used car will be like a 3-star hotel which is easy on the pocket. On the other hand, a new car will be like a 5-star resort which contains upgraded facilities. Whether new or not, there are some rules that you need to adhere to when you buy your car in St. Louis. It includes accurate title transfer, safety inspection and registration of the car at the Missouri Department of Revenue. Once you have selected the car and completed the formalities, your car is ready for you.

Planning a holiday travel and buying a car in St. Louis are analogous. So, before you buy your next car in St. Louis, follow the procedure of research, comparison and selection.

How to Apply For Bad Credit Car Loans?

It might seem difficult to avail your car loan if you have poor or bad credit ratings. People often apply for their car financing and end up with a rejected auto loan application, simply because they have not worked their loan application properly, or maybe applied for the wrong one. With the ongoing economic scenario, loan providers have started offering car loans with bad credit to individuals having low FICO scores and poor credit history. One needs to become eligible to avail the credit, and the following pointers can help you in working out your auto financing:

Specialized credit facilities for individuals having a bad credit history

All traditional loan providers need good credit ratings while providing their credit. In such cases, if the individual has bad or poor credit ratings, it is going to be almost impossible to receive the car financing from a local bank or credit lending organizations and car financing companies like Ford Motor Credit or Toyota Motor Credit. One has to opt for car loans designed specially for individuals having a bad credit history. Such individuals might face issues relating to bad financial conditions such as repossession, foreclosure, or even bankruptcy in the future. Moneylenders take these factors into consideration and work out the feasibility aspect for the borrower, so that the applicant finds it affordable and convenient to pay the monthly loan installment. Bad credit car loans are such programs.

Basic requirements for qualification

Applying for a bad credit car loan can be easy. The applicant has to fill up the application form and submit some documents required by the creditor. You need a valid car driver’s license, and some ID proof verifying your contact and residence details. In addition, it is also required to show your employment records. You need to earn a minimum of $2,000 every month to qualify for the program. The car insurance has to be worked out in the proper manner so that it includes the required coverage and benefits. The insurance will cost you a certain fee, which can be included along with the car price, or alternately can be paid independently of your car financing. Usually, the insurance cost is included within the financing options, however you need to check that out.

Apply online and save time

Many companies and loan providers offer online car loans which can be a great way to finance your car. All you need to do is go “online” and search the net for lenders dealing with bad credit ratings, and check out whether they provide car finance. To apply online, you have to fill up an online application form and provide your contact details. Generally, your personal information is protected and remains confidential, but it is worth checking out the lender’s website for any disclaimers and ascertain you get a free quote that is not binding. While buying car loan online, it is important to verify if the lender you have chosen is registered with the Better Business Bureau to prevent possible frauds.

Working out your car loan

It’s recommended you apply with more than one lenders. In fact, the more lenders you approach, more and better options you end up availing, and that can prove to be beneficial in the end. Once you get your free non-binding quote, you could the car loans calculator and determine the net interest you are likely to pay while redeeming your loan. It becomes easy to work out your budget, and what kind of monthly payments you can commit to. One needs to choose the lender that best suits your particular requirement.

Is 0% Financing Too Good to Be True?

Because many auto dealers are offering 0% financing, you may be confused and wondering if this rate is too good to be true? Unfortunately, in many cases the answer is yes.

Before we get into whether 0% interest is too good to be true, it’s important to understand what 0% financing actually is. When you get a car loan, as everyone knows you are borrowing money to pay for a car. The bank or credit union doesn’t give you that money for free. Instead, you have to pay interest, or a fee that you give the financial institution for lending you the money.

The phrase, “if it’s too good to be true, it probably is too good to be true,” is definitely something you should keep in mind as you search for a car loan. Many times the 0% is a “teaser rate” meant to get you in the door and may not apply to you or may not be the best deal for you.

The problem with 0% financing is that not every potential car buyer qualifies for this super-low financing. The too-good-to-be-true rate applies to people with very high credit scores, excellent credit records and little or no debt. That means only about 5% of the population qualifies for the 0% rate. And, if you do qualify you will most likely have larger payments over a shorter period of time, which may be difficult to fit into your monthly budget. Unless you fall into this category, you may get stuck paying a much higher rate.

You may be surprised to learn that even if you do qualify for 0% financing, it could cost you more in the long run. If the dealer offers you the choice of 0% or a cash rebate, taking the rebate and financing through your local credit union could save you money – even if their rate is higher. Let’s do the math:

Credit Union vs. Dealer Auto Loan

• Vehicle purchase price: $20,000

• Cash rebate instead of 0% financing: $ 3,000

• Amount financed: $17,000

• Interest rate: 2.49% APR or 0% with dealer

• Term of loan: 48 months

• Monthly payment: $372.46 – $416.67 with 0% financing

Total Saving/Life of Loan: $2,122.08

There are numerous reasons to get a credit union car loan. Below are just a few:

Credit Unions have the funds and healthy relationships with car dealers to make the loans.

You have a better chance of having your loan approved if you have credit problems.

Credit unions are non-profit organizations and work to provide members with high-quality customer service.

Members tend to have a more personable experience at a credit union so you can openly discuss your concerns about your loan, discuss flexible repayment options and review your financial situation.

Credit Unions are more likely than traditional banks to work with you if you experience difficulty making the payments because they are more in tune with their local communities.

You could get lower monthly payments with your credit union, because low auto loan rates are available for loans with longer terms as well as shorter ones.

You may save money on the total cost of the loan, because credit unions don’t charge application fees or prepayment penalties.

So, the next time you see a 0% rate, do your homework and get pre-approved at your local credit union before you even shop for the car of your dreams. An informed buyer is definitely the best buyer!!!