How do you know that you’re ready to buy a car? When you have your finances in order. This means focusing on three vital areas during the Hyundai finance process, and here, Keyes Hyundai goes over a helpful rule to keep in mind.
20: Your Down Payment
Getting your down payment right is an essential first step when planning to purchase a vehicle. You should aim for 20 percent of the sale price. This means that if you are thinking about a car that is $35,000, you would supply $7,000 right away. That may seem like a lot of money, but using a trade-in vehicle could help you get close to it.
4: Your Loan Term
The loan term is the length of the loan, and generally, these can range from two to seven years. Paying off your loan in two years may sound good, but this means you could have prohibitively high monthly payments. A seven-year loan would shrink those payments, but you will pay a lot more in interest. This is why a four-year loan is wise, as it balances the benefits of both short and long loan terms.
10: Your Transportation Expenses
The last thing to consider is what you can afford to spend monthly on transportation expenses. This is more than your loan or lease payment; it entails making a point not to exceed 10 percent of your income on all vehicle-related expenses, including gas, maintenance, and insurance.
Get the Hyundai Financing Process Started in Sherman Oaks, CA
If you have any questions about buying a car, get in touch with Keyes Hyundai. You can also start the financing process now. Just fill out our online application, and one of our financing professionals will contact you.
