Select Page

Getting An Auto Loan with Bad Credit in Missouri is Easy!

In Missouri, it’s easy to get an auto loan with bad credit. There’s a reason Missouri is known as the “Show Me” state, and it’s because there’s a way to do everything. You can get an auto loan no matter if you have bad credit or no credit because there are many auto financing programs within the state. You can find some auto loan programs online and there are several dealerships, such as CarHop, who strictly work with those who may not be approved with traditional lending and you won’t have to worry about a big down payment. Lenders are becoming smarter about their average customer and with today’s economy, not everyone has a 750 credit rating with minimal debts. The average consumer most likely works in a call center or in retail, has imperfect credit, several debts and a mediocre salary. Not everyone works in a 9 to 5 blue collar job making over $50,000 a year, and Missouri recognizes that fact because the state is rich in factory work as well as customer service and retail. With places like CarHop and online financing like Capital One Auto Financing, you can finally catch the break you’ve been looking for and get the auto loan that you need so you can drive in style with a newer car while having reliable transportation. The days of paying for car repair after car repair are over because Missouri will “Show You” how to get a new set of wheels without breaking the bank even with bad credit.

Tips for Purchasing

When you purchase a vehicle from a dealership in the state of Missouri, you’ll need to be familiar with state laws in regarding a new purchase. You will need to have a valid ID for proof of identity and you must be at least 18 years of age to take out a vehicle loan because you are signing a legally binding contract that promises to make all payments on the loan until it is paid in full. If you fail to make your payments or get behind on the loan, your vehicle may be repossessed.

To license the vehicle, you will also need proof of auto insurance. If you’re taking out a loan on a vehicle, the state of Missouri requires that you have full coverage insurance on the vehicle and the Department of Motor Vehicles (DMV) will check this before titling the vehicle. You will also need to show proof of your paid personal property taxes for one or two years, depending on how long you’re trying to get tags for your license plates (either yearly or every two years). If you do not own any personal property, such as a car, truck, trailer, or boat, you must go to your local city hall or courthouse to get a waiver proving that you do not owe any past due personal property tax.

Sales Tax Rules

After all of your paperwork is in order, you’ll be required to pay sales tax on the vehicle that you just purchased. The tax rate can be as little as 4.22% or as high as almost 10 percent, depending upon the city or county where you reside. To get a better estimate as to how much cash you’ll need to pay your sales tax, you can use an online calculator to determine what your tax rate will be. Of course, you don’t have to pay cash; check or credit card will also suffice but the DMV may charge a surcharge for these alternate payment methods.

Auto Insurance Requirements

If you’re shopping for auto insurance before you make your purchase, there are a variety of options, including online and local agents. Depending whether you’re shopping around in St. Louis, Springfield, Columbia, Kansas City, Joplin or Independence, you’ll have several choices of local agents including State Farm, All State, Nationwide and many more. Insurance rates may vary from city to city based on population, driving records and other personal factors such as age, gender and your personal driving history. Luckily, the weather is generally mild in the Show Me state so insurance rates tend to be less than a state where the weather is more hazardous, such as Alaska or Colorado.

Alternative Auto Loan Options

No matter what your current situation is, there are plenty of options for auto insurance and auto loans for those with a less than perfect past. Aside from CarHop, most small dealerships have some sort of auto finance program tailored to those with poor or non-existent credit. Missouri also has many “buy here, pay here” car lots where you can obtain auto loan financing and make weekly or bi-weekly payments, depending on your pay date schedule. Sometimes, you can even find a car dealer that will include insurance on your vehicle and lump the cost of your insurance premium into your car payment.

Most lenders are willing to work with you regardless of your credit or job situation and want to put you behind the wheel. In some cases, you may even be able to obtain an auto loan without employment as long as you have a co-signer who can vouch for you if they are willing to put their name on the loan.