Car Financing FAQs


Answering Your Auto Loan and Financing Frequently Asked Questions

After you've found the perfect ride for all of your wants and needs on the road, we here at the Auffenberg Dealer Group would be delighted to help you get an affordable auto loan to make your driving decision all the more exciting. However, many drivers from the St. Louis, O'Fallon, Swansea, Shiloh, and Belleville areas have questions about the financing process, so we have the answers to make of your frequently asked questions! Take a look below to get the details you need.

What do I need to get a car loan?

To get a car loan, you need a few things:

  1. Proof of income
  2. Your credit and banking history
  3. Proof of residence
  4. Vehicle information
  5. Proof of insurance

What is APR?

"APR" stands for "annual percentage rate." This is the amount of interest on your total loan amount that you'll pay yearly, averaged over the full term of the loan. Low APR means lower monthly payments, higher APR means higher monthly payments.


What does "being upside down" on a loan mean?

Also referred to as being "underwater," this means that you currently owe your finance lender more than your vehicle is currently worth.


Can I get an auto loan if I don't have good credit?

Yes! Good credit, bad credit, or no credit, our financial experts will work with you to find a plan that meets your financial needs.


Do I need a co-signer?

Having a co-signer can make it easier for you to get a car loan if you have poor credit, but it isn't necessary.


If I still owe money on my trade-in, how will that affect the price of my new car?

It depends on how much you owe and how much your trade-in is worth.

If you still owe $5,000 on your vehicle but its trade-in value is $7,000, then you will have $2,000 to put towards a new vehicle.

On the other hand, if you're upside down on your loan, the opposite is true. If your vehicle is worth $7,000 but you owe $9,000 on your loan, then you will still have to pay $2,000 out of pocket or roll the old debt into your new loan. The money that is carried over to the new loan will also be subject to the new finance rate, which could potentially cost you more than simply paying off the old loan, but it's a choice worth considering for many.


How much of a down payment should I have?

For a car loan, it's typically 10% or more of the vehicle's sale price for a used vehicle; for example, a vehicle worth $15,000 means the buyer would make a $1,500 down payment. For a new vehicle, a higher percentage - typically 20% - is made to offset the vehicle's quicker depreciation.

If you have any additional questions or concerns for us about financing, call us at (618) 589-0900 or come out to see us in person at one of our many dealerships in the area. Until then, drive safely!

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