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Springfield Auto Loans

Our lenders can also help you get Springfield auto loans in no time. On this page, we’ll share some Missouri auto financing tips and tricks.

The Long-Term Loan Trap

One way dealers and lenders try to trick car buyers is by offering them Springfield auto loans with excessively long terms. In fact, the average car loan now has a term of 62 months. The car buyer might look at a long-term loan and see ultra-low monthly payments, but the lender looks at the same loan and sees major profits on interest expense. This is because the longer your Missouri auto loan’s term, the more you will pay in interest overall. When you get Springfield car loans with very long terms, the lender wins. Many consumers are tempted by this because it enables them to buy a more expensive car without really having to pay more per month. However, long-term car loans will end up costing you thousands of dollars more in interest than shorter-term loans.

The Leasing Bamboozle

Another way dealers lure consumers into bad financing deals is with leasing. Consumers sometimes find leases attractive because they can drive an expensive car for relatively low monthly payments. They also can trade up for a new car every few years. However, when you lease, you make considerable payments every month, but you never build any equity. At the end of your lease, you will have spent thousands of dollars, but you will own nothing. Had you spent the same amount on a Springfield auto loan, you could probably own a car by the time your lease expires. It might be a cheaper car, but you would have 100% equity in it. Usually, leasing is only a better option than Missouri auto loans if you are one of those buyers who has to have a new car every two to three years. If you have any questions, please visit our Frequently Asked Questions page.

The Danger of Being Upside-Down

Being upside-down in Springfield auto loans means that you owe more on your vehicle than it’s worth. This is also referred to as negative equity. This phenomenon is becoming increasingly common as car buyers continue to lengthen the terms of their loans. The problem with long-term Missouri auto loans is that you build equity in your car at a creeping pace, usually much more slowly than your car loses its value. As a result, if you find yourself in need of a new car in the next few years, you could be in serious trouble. You could have an accident or just be enticed by a newer car model. In order to get a new car with an existing upside-down loan, you will either have to pay off the existing loan in full out of pocket or roll the old loan into your new Springfield car loan. The way an old balance is rolled into a new loan is usually to lengthen the term, which is, of course, how you got into this mess in the first place.

How to Avoid Being Upside-Down

There are very simple strategies you can take to avoid being upside-down in your Missouri auto loan:

  • Make as large of a down payment as you can
  • Don’t buy more car than you can afford
  • Keep the term of your Springfield auto loan between 36-48 months, if possible
  • Make more than your minimum monthly payment if you can
  • Don’t buy a new car until you have positive equity in your current vehicle
Getting Saint Louis auto loans will be a much more pleasant experience for you if you come prepared.