Finding the Best Car Loan for You

Auto loans are tricky. How are you supposed to know what kind of new or used car loan rates are best for you?

We can help.

What does getting pre-approved for a car loan mean anyways?

Getting pre-approved means securing financing for your new vehicle and knowing how much you can afford. It is recommended to get pre-approved through your primary financial institution, a credit union car loan preferably, before heading to the dealership that way, when you do find your dream car in the lot, the financial part is already taken care of, leaving no room for awkward negotiations with the dealer.
Financial experts typically use the 20% rule of thumb to determine how much you feel like you can spend on your vehicle each month. Your total vehicle expenses should be no more than 20% of your monthly pay after taxes.

Your income helps determine what kind of car loan you may need; not whether or not you can buy one.

Use the Missouri Central car loan calculator to help you!

Far too often, people assume they can’t get approved for a loan for various reasons so they don’t even try. Other consumers think that they are required to have a co-signer or a great credit score so again, they don’t even try.

Common Car Loan Misconceptions

There are too many common misconceptions about purchasing and financing a car. It’s time to bury those misconceptions once and for all and take down the road block.

Here’s the scoop:

  1. Financing a vehicle doesn’t require a co-signer.
  2. Financing a vehicle doesn’t require perfect credit.
  3. Financing a vehicle doesn’t require any credit at all.
  4. Financing a vehicle doesn’t take long AT ALL.
  5. Financing a vehicle doesn’t require a down payment.

These are the factors that will determine the best auto loan for you.

So, where do you fall?
You don’t have a co-signer. The good news is; you don’t need one.

Give yourself some credit, not a cosigner. Believe it or not, many financial institutions would be more than happy to pre-approve you and only you for a vehicle without having to use a third parties credit. Using someone else’s credit score to qualify you may come with a lower interest rate, but at in the long-run, paying higher interest in your new vehicle will give you the opportunity to build your credit. It may be helpful to take a look at some current auto loan rates to get a better idea of what interest entails.

You don’t have perfect credit. There could be a number of reasons why your credit score is low, many of which don’t necessarily disqualify you for an auto loan.

Life events such as housing issues, credit fraud, or even one late payment, can definitely impact and lower your credit score. If you co-signed on your kid’s apartment while they were at college and they get evicted, your credit is affected. If you and your boyfriend broke up and the lease to your apartment was terminated or broken, there goes your credit.

Missouri Central Credit Union understands that some past events don’t determine the person. If your credit has been negatively affected vand isn’t as high as you’d like it to be, speak with a financial representative at your banking institution to see what the best auto loan is for you. Approval for an auto loan is subjective at Missouri Central. Your financial advisor looks into more than just numbers; they will sit down with you on a personal level to discuss what you can do to improve your credit and find the best car loan rates available.

You don’t have any credit at all?

That’s great! Because guess what? Everyone needs credit. What better way to get the ball rolling than by financing a new ride!

Normally, if you are in good-standing with your banking institution, they’ll help you get the loan that you need. While auto loan interest rates are usually higher for first-time car buyers without credit, it is best to trust that your credit union won’t allow you to purchase a vehicle you can’t afford. The amount you have for a down payment can also affect your approval, so if your lack of credit means piles of saved up cash, that will definitely lower your interest rate and monthly payment.

Missouri Central has a first-time car buyers program that has been established to help those who are new to buying a car or don’t have any previous credit history. If you have never had an auto loan before, this may be the best loan for you.

You don’t know how fast and easy getting pre-approved is.

How to get a car loan:

Call your credit union, visit, or apply online and they can have you approved within MINUTES. You truly have nothing to lose by calling your credit union to get pre-approved and see how much you can afford on a vehicle. Making that phone call is basically free knowledge. Once you’re pre-approved, your credit union will provide you with everything you need to know to make the next step.
Applying for a new or used auto loan from Missouri Central Credit Union is only one click away.
You don’t have a down payment. Well good news; you can still purchase a vehicle.

Obviously, a down payment is recommended, as it will decrease the amount you need to finance, resulting in lower monthly payments. By down payment, we don’t just mean cash. A down payment can even come in the form of an old vehicle. Trade in your clunker and see how much that takes off your total!

So now for the answer to your question; which car loan is best for you?

Car Loan Terms

Missouri Central auto loans have terms ranging from 2-7 years. A 7-year term means a lower monthly payment, but more interest while a 3-4 year term loan may mean higher monthly payments with less interest. Which route you decide to take will be determined by your financial means and budget.
If you’re a first-time car buyer with no previous credit, take advantage of the first-time car buyer program.

If you don’t have a down payment or want to trade your vehicle in, your credit union will find a personalized auto loan rate based on what you put down.

More perks of getting an auto loan from Missouri Central other than the peace of mind that you’re getting
the best possible deal on your new car?

  1. No application fee
  2. No prepayment penalties
  3. Your choice of payment date
  4. Warranty, GAP and protection plans are available. Yes, even on a used vehicle.
  5. Last but not least, you’ll get $300 before you even make the first payment if you finance a vehicle from Enterprise through Missouri Central.

Missouri Central Credit Union has teamed up with Enterprise to offer the best deals on used vehicles and used car loans. The inventory they have is endless and you can rest easy (just not while driving) knowing that you made the right decision.

Learning about auto loan interest rates and how to get a car loan can be pretty easy if you let it be!