Comparing the Value of Auto Loans

Published: February 24, 2010
Posted in Auto Loan

Shopping around to get the best rate for auto loans can save you money, but comparing offers may be a bit confusing. There are many different lending terms to become acquainted with in order to understand which loan is really the best value.

Here are some tips to help you to make auto loan comparison easier;


Up-front fees and charges-The description of these fees may differ depending on the lender some examples are; origination fees or processing fees, but what it really means is the total cost you are paying. Just add up the fees and charges for each loan, and compare them from that perspective, it makes the bottom line much clearer.

Annual percentage rate (APR)-This is the interest rate on the loan combined with all fees charged, and is simply the true annual cost of the loan. APR is expressed as a percentage of the loan principal, the rule of thumb is the lower the APR, the less you will be paying for the loan.

The total cost of the loan is the sum of all the monthly payments during the loan term, plus all fees and charges you will have to pay.  This factor provides a better comparison because it sums up everything you will pay over the entire duration of the loan.

In general, shorter loan durations are better.  A car depreciates quickly and will decrease in value considerably during the first two years.  Long term loans are more likely to end up causing you to have negative equity, being upside down in your loan, (simply meaning that you owe more on your automobile than it is worth).

Once you have learned how to compare auto loan offers and are ready to purchase your new vehicle, be sure to stop in at your local St. Louis Cross Keys Auto Center today and test drive one of our great used or certified pre-owned vehicles.

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Car Buying Tips

Published: February 24, 2010
Posted in Guaranteed Credit

Car buying is not always the most pleasant experience, but most people agree that the excitement and anticipation of driving away in a brand new car is enough to overcome the not so fun part like having a credit check, applying for a guaranteed financing program,  or signing your life away when you sit down to sign your contract, not to mention the negotiation process. 

But like most situations, the car buying process is whatever you make of it, if you think negatively about it,  you will probably get stressed out and you are more likely to have a bad experience.  So if you are in the process of purchasing a new vehicle, relax, breathe deep and keep your thoughts on the exciting energy you will have when upgrading your older model vehicle for a brand new one.  Try to envision exactly how your new car will feel, including that new car smell!

Here are some tips that will keep the process manageable and to hopefully lower your stress as you make one of the biggest financial decisions of your life;

Check your present vehicle’s Blue Book value before going to the dealership to trade it in.

More and more vehicles are coming with technology packages that include GPS systems, satellite radios and more. These can be very tempting, but quite expensive. Many of these features will require monthly fees, so keep that in mind.

What can you really allow for your monthly auto loan payments each month? Keep your budget in mind and don’t forget to consider the cost of gas, insurance, and maintenance.

Be sure to know which cars you want to drive in advance and try to keep it at 3-4 or less each time you visit Cross Keys Auto in St. Louis to test drive your new vehicle to enable you to be clear on making the best decision in your car buying process.

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Downsizing Your Ride

Published: February 24, 2010
Posted in Auto Credit

Many people are downsizing in different areas in order to save money these days, and purchasing a less expensive, smaller vehicle that gets good gas mileage is probably one of the more common ways consumers are cutting corners, but there may be some challenges to overcome such as paying off the old loan, or trying to resell your old car, particularly if it is a gas guzzler.  Cars such as sports car models and large SUV’s have suffered outrageously in the past couple of years.

Purchasing a used or certified pre-owned economy car that is still under warranty will decrease your costs even more, particularly if your present car’s warranty is up and you have been paying out of pocket for maintenance expenses. 

Everyone knows the sacrifice involved in giving up their big roomy SUV or 4X4 truck, but surely surely, there’s an upside to downsizing your ride.  You may be surprised at how much fun a smaller, gas efficient vehicle can be and how many extra options they can hold. Think about how much simpler it would be to park a small SUV in a busy parking lot.

One of the biggest disadvantages to downsizing your ride is going to be applying for auto credit. One auto loan out of each four is upside down. Meaning that the debtor owes more than the vehicle is worth. A lot of lenders used to allow borrowers to roll over that “negative equity” into the new loan, lending up to 130% of the new vehicle’s price.  Today, you probably won’t find that kind of financing available, so you may have to initially take a loss on your old vehicle in order to downsize and start saving money on a more efficient one.  If you think about it as learning to simplify your life, it may take some of the bite out of the situation.

When you are ready to test drive a new, smaller vehicle, see your local Cross Keys Auto dealer in St. Louis, we have a great line-up of great used and certified pre-owned economy cars.

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What are No Credit Auto Loans?

Published: February 24, 2010
Posted in Auto Loan

If you are looking for an auto loan, be sure to shop around and get some quotes from more than one lender, particularly if you are looking for a no credit loan, since there are no records required, you can get as many quotes as you want simply by providing some basic information. 

The most convenient method to get multiple rate quotes is online, either through a broker who can shop rates with different lenders for you, or check out different lending websites yourself.  When you request a no credit loan, there are usually different rates (higher than traditional loans) so be sure to let the lender know upfront that is the type of loan you are interested in.

If you have a recent history of bankruptcy or foreclosure, but still have significant  income, you may find no credit check auto loans very convenient. No credit loans may even offer you a better rate than a traditional lending agency if you do have negative marks on your credit record.

Keep in mind that you should give accurate information upfront, if you try to cover up any negative credit history, the company you are applying with will find out anyhow and most underwriters do not look favorably on borrowers who try to hide information.  Keep in mind that your collateral and character are what the lenders rely on. When you get the final decision, make sure to compare it with other lenders rates.

In order to be considered for a no credit loan, you may have to put up collateral to cover the loan, long term, after the value has decreased and the car can no longer be the sole collateral for itself.  Another option is to pay a huge down payment, again to cover any periods of time when the loan is still being paid off, but the value of the car is not enough to suffice for collateral.

Once you have secured your auto loan, be sure to visit your local St. Louis Cross Keys Auto dealership and check out our selection of used and certified pre-owned vehicles.

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Pros and Cons of Buy Here Pay Here Auto Dealerships

Published: February 24, 2010
Posted in Auto Financing

If you have credit problems, you are probably familiar with the finance on the lot car dealerships; in the past if a consumer had credit problems the choices were limited. As far as auto financing goes, most dealerships would shy away from lending to people who have bad credit, therefore Buy Here Pay Here lots, have in the past, been the only option for consumers with bad credit, but today, in an economy where many more consumers have credit problems, there are more options.  Many bad credit lending and finance companies are popping up everywhere including the internet.

Here are some of the advantages and disadvantages of Buy Here Pay Here (BHPH) car lots;

Advantages are that you can get approved for a loan, you usually set up bi-weekly payments that may work well with your budget, you can often times get approved the same day, BHPH dealerships tend to be flexible regarding trade-ins.

Disadvantages that many consumers have voiced in regard to purchasing a car at a BHPH car lot include; very high interest rates, (some as high as 26% as BHPH dealerships are not mandated to follow rate restrictions imposed by law on other finance companies), interest rates may be the number one negotiating factor, even more so than the actual asking price of the vehicle,   limited choices in the specific make and model of vehicles available.

Be sure to consider all of your options and be aware that there are many other options now days for consumers with less than perfect credit.  If you decide to seek auto financing from a loan company that specializes in approving car loans for consumers with lower credit ratings, visit your local Cross Keys Auto Sales dealership in St. Louis and check out our wide selection of used and certified pre-owned vehicles available.

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How to Choose a Car Dealership

Published: February 24, 2010
Posted in Auto Loan

When you decide to purchase a new vehicle, it’s important to select a dealership that you really trust and feel comfortable in doing business with, even after the purchase of your vehicle, you may be engaged in a long term relationship with the dealership’s service center.  So how do you find a good dealership before it is too late and the purchase has been made? Here are a few things to look out for and to think about when searching for a car dealership to work with;

Read the dealer reviews on Autotropolis.com, they are honest reviews from real consumers like you.  There is quite a bit of information regarding the quality of different dealerships through the perspective of another consumer who has had experience with a specific dealer. Consider the longevity of the dealership which will be an indication of whether the dealership will be there long term when you need warranty service for your automobile. Check your local better business bureau (the BBB) to make sure the auto dealership you are considering working with is a member in good standing-meaning that they have not had many negative comments against them. Last, but not least, visit the dealership to see how friendly the sales and service staff is, evaluate how well the showroom looks, are the service center areas clean and orderly?  Do you feel comfortable with how the sales and service staff treats you?

Ask your family and friends for their input on dealerships that they have had a good experience with.  Dealerships that provide great customer service will have many satisfied customers who will have positive testimonials regarding their car buying experience.

At Cross Keys Auto Sales, our skilled and friendly team of professionals will be happy to answer any questions you have about our dealership, from our auto loan department, sales professionals, customer service representatives, and trained service technicians; we want to be your number one choice for the dealership that you select for your next car buying experience.

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Paying Cash for Your Used Vehicle

Published: February 24, 2010
Posted in Auto Financing

If you are considering the purchase of a new or used vehicle, the first step is to consider the terms that you will select to pay for the car.  You may not want to use auto financing, it can be stressful and tedious to go through the paperwork process and you may want to avoid paying the interest, the advantages to paying cash for a car are obvious, saving money on financing charges, more power at the negotiating table, if you have cash in hand sellers take you more seriously, no monthly payment or liens, etc.  But there are some disadvantages to paying with cash, they are;

  • If you need to build your credit, an auto loan is one of the best ways to get your credit score higher at a rapid rate, if you don’t qualify for auto financing, you may want to consider a co-signer o help you to build up your score.
  • Your cash may be utilized better in a different way, such as investing in property-using the cash for a down payment, or starting or expanding your business.
  • If you plan to use your car for business, you will actually be better off to lease a vehicle because there are more tax write offs available than financing or paying cash for your new automobile.
  • You own your car, not the bank or finance company.

If you lease an automobile, you will have minimal upfront cash to pay out, the requirement is usually one month’s payment and the refundable security deposit. The sales tax is usually rolled into your monthly payment.

To evaluate weather leasing is the best option for your cash investment, Look at the interest rate you would be paying if your financed a car, consider the additional fees and then consider the rate of interest you would earn on the same amount of cash if you invested it. If you financed a car for over 48 months and invested the same amount of money for 48 months, considering the savings on interest,  which is the most profitable at the end of the 48 month term? 

If you are interested in purchasing a new automobile, be sure to visit your local Cross Keys Auto Sales dealer in St. Louis today.

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Buying an “As Is” Vehicle

Published: February 24, 2010
Posted in Guaranteed Financing

In the car industry, the legal term “as is” means that you are purchasing a vehicle with no warranty. You are buying the car without any guarantees as to the quality of value of the car. 

Under most circumstances, a dealership will inspect a car that has been traded in so that they know what condition the car is in before the put a warrant on it (no matter how limited, it may only be 90 days) and sell it to a buyer.  With an “as is” vehicle, a thorough inspection has not been done, therefore the dealership does not even know for sure what the condition of the pre-owned vehicle is, so they are certainly not going to offer a warranty.  Below are the conditions in which a dealership can sell an “as is” vehicle;

  • The vehicle is sold at a purchase price of less than $3,000.
  • The used vehicle is seven years of age or older.
  • A vehicle sold ‘as is’ removes all implied warranties.
  • Even though there is no warranty offered on the vehicle, it is still safe to drive and the dealership is responsible to make sure the car is in good enough condition to be considered safe to drive.
  • If the dealer wants to sell a vehicle that does not meet the legal and safety standards required to be safe on the road, it can ONLY be sold with ownership transfer documents that clearly state that the vehicle is unsafe to operate.

If you are looking for a pre-owned vehicle, be sure to visit your local Cross Keys Auto dealer in St. Louis and ask about our guaranteed financing program so you can drive away in your new car today. (note that dealer financing may not be available on older vehicles).  All of our vehicles that are listed without a warranty are clearly marked with an “AS IS” sign to inform you, the consumer that no warranty will be offered on that specific vehicle.

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When you Purchase a Vehicle with Hail Damage

Published: February 24, 2010
Posted in Auto Credit

As you may know, hail damage may be difficult to fix because it usually affects the entire vehicle including the sheet metal.  You may occasionally find hail damaged vehicles for sale at your local Cross Keys Auto dealers’ lot.  Whenever a hail storm occurs a dealership’s entire inventory may get damaged and many vehicles that are lower priced may not be worth the time it takes to fix them, so they get sold at a reduced price, with most of the imperfections being cosmetic only, any glass, safety or mechanical components that get damaged will be repaired.

Hail damage can be so severe that the cost of repairing a car may be more than the car is really worth, so the vehicles are considered totaled by the car insurance companies who may end up taking the cars and selling them at a discounted price to consumers.  The vehicles will have a title that gets flagged with “hail damage”.  The windshield, glass mirrors, and mechanical components that have been damaged will most likely be repaired so that the car is in safe operating condition when purchased by a consumer.  There may even be some cosmetic repair done so that the vehicle does not look quite as when it was initially damaged.

If you are not that concerned about the aesthetics of your next vehicle, you could be in a position to get a really great vehicle that is very mechanically sound at a rock bottom price, there may be quite a bit of negotiating room when you purchase a vehicle with hail damage from your local dealership.  Be prepared because you may have to come up with a bigger down payment as a financial institution may not extend 100% auto credit on a vehicle that has had hail damage because of the subsequent lower re-sale value.

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Customize Your Ford Truck With Great Aftermarket Products

Published: February 24, 2010
Posted in Used Truck Sales

You may have recently purchased a new or used vehicle that did not have all of the features and options you wanted, the used truck sales professional may have told you that you could easily customize your automobile later with aftermarket products, but where do you start?  There are many aftermarket products available that can easily be used to customize your vehicle. You can even customize with accessories and aftermarket options that have the Ford logo.  Some of the more common products you can use to accessorize are; custom rims, floor mats, seat covers or a rear spoiler, you may also be interested in a remote starter or an alarm system.

There is an online Ford accessories store available for your convenience  You can select install accessories using the convenient Ford Accessories Store (see Resources below). Select your Ford vehicle model and year, view the online catalog pages of accessories.

To customize your Ford’s exterior, you can choose to do a total paint job or select decals and designs only. The small decals can be installed yourself after cleaning and wiping dry toe area you have selected.  If you want to do large decals like metallic racing stripes, you may want to contact the service center at your local Cross Keys Auto in St. Louis.

Upgrade and customize your Ford car’s rims and tires. Look through the options available at your local dealership, tire shops and online accessory stores. Find the wheel covers, hub caps or rims that match the total look you desire for your Ford car. Order the rims and tires. Then have them professionally installed and balanced.

To customize your Ford’s interior, order custom floor mats, or upgrade your car stereo to a navigation/stereo combination.  Another great option is to add custom seat covers or head rest covers.

Consider ordering a rear spoiler and having it professionally installed, bug guards and splash guards are another option you may consider.  No car is complete without an alarm system and if you live in an area of the country with severe weather, then at the top of your list for upgrading and customizing your Ford should be a remote starter.

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