When planning a big loan for something like a car that will take a few years to pay off, you don’t want to be hasty. Too many people rush into buying and quickly discover that they didn’t make a smart decision. Keyes Hyundai wants to help you make the right choice with Hyundai financing, and the 20/4/10 rule can help. Here’s what those numbers entail.
20-Percent Down Payment
Getting your down payment right is a critical first step when buying a car. You want to put up enough to shrink the loan amount, but not too much that it drains your savings. Aim for 20 percent of the sale price. Using your old car as a trade-in can help you reach that number.
4-Year Loan Term
Next, you’ll want to think about the length of your loan. To create affordable monthly payments and avoid extra interest charges, consider a four-year term. Anything shorter than this will cause those payments to climb quite a bit, while anything longer will result in having to spend more money due to the accrued interest.
10-Perecent Monthly Expenses
A great way to figure out how much you can comfortably afford on your car each month is to calculate your income and then figure out what 10 percent of it is. This should be the most you spend on your vehicle each month, and should include all car-related expenses like fuel and insurance in addition to your monthly loan payment.
Start the Hyundai Financing Process in Van Nuys, CA
Now that you know how to a make good choice with Hyundai financing, you can get started with the process. Just fill out our pre-approval online application. Any questions? Get in touch with Keyes Hyundai in Van Nuys, CA.
