Buying a vehicle is a big investment, which is why it pays to be prepared. If you are planning to finance your purchase, creating a budget should be one of your first steps. Lester Glenn Mazda has three tips that will help make the Mazda financial process easier for you.
Start with the Down Payment
The first thing to do when buying a vehicle is figure out how much you can spend right away. The bigger the down payment, the less money you will need to borrow. You should aim for 20 percent of the sale price, but the more you can put up, the better off you will be down the road. Using your current car as a trade-in can help increase your down payment.
Pick a Good Loan Term
Once the down payment is squared away, you can move on to the loan term. For this, you don’t want to go too short, as it will result in bigger monthly payments. You don’t want to go too long either, however, as that means you’ll end up paying a lot more in interest. The typically recommended term length is around four years, achieving a happy medium between the two extremes.
Think About Your Monthly Payment
Finally, you have to consider what you can afford to spend every month. A good rule of thumb to follow is to not exceed 10 percent of your income. This includes not only your monthly car payment, but also things like insurance, maintenance, and fuel.
Start the MAZDA Financing Process in Toms River, NJ
When you’ve finalized your budget, it’s time to get the financing process started at Lester Glenn Mazda. All you have to do is fill out our online application to begin. If you have any questions, feel free to contact us!
