What You Need for Auto Financing in St. Louis
August 14, 2015
Applying and qualifying for auto financing in St. Louis is not as complicated as it may first appear. There are, however, several factors for consideration and necessary requirements that must be fulfilled to secure an affordable car loan.
Of primary importance is separating your gross and net incomes, as they are quite different. Gross income is the amount you earn before taxes are deducted. Net wages comprise your actual “take-home” pay. Loan officials base your income on your primary means of employment, even if you have more than one job. The second and subsequent sources of money are not counted.
Additional monies that you may receive from unemployment, social security and disability are also not viewed as part of your income. A lender will also look over your debt to income ratio. This figure is determined by dividing your earnings by your debts. Ideally, this amount should be no more than 20-30%. A healthy down payment will reduce your overall loan repayment. For purchasing pre-owned vehicles, a down payment of at least 10% of the auto’s cost is usually necessary, although exceptions are certainly possible.
For an even better used car deal, cars, trucks and one owner SUVs for sale may offer more value and longevity for the price.
Consult the expert sales and lending professionals at 5 Star Auto Plaza at (636)940-7600 to discuss your options for auto financing in St. Louis. We are ready to supply not only the perfect used vehicle for your specific needs, but cost-effective financing for every circumstance.