When you start looking for a new car, exploring vehicles is exciting. However, you don’t want to get enamored with a particular vehicle that is out of your price range. This is why it pays to think about your budget early on. Here the Mazda finance department at Patrick Mazda offers three important areas to focus on.
Down Payment
First and foremost, you should figure out how much money you have on hand that you can immediately put down for your car. The more you can supply, the better off you will be. Aiming for 20 percent is a good goal, as this will reduce the amount you will need to borrow significantly.
Monthly Payment
Next, consider how much you can afford to spend every month. A good rule of thumb to follow is to not exceed 10 percent of your income on all expenses related to your vehicle. In addition to the payment, this includes things like gas and insurance.
Loan Term
Finally, you need to come up with a loan term that fits your needs. The shorter this is, the higher your monthly payments will be. Conversely, the longer the loan term – while it will reduce those payments – you will end up paying more in interest. Aiming for a term of around four years is a smart idea.
Start the MAZDA Financing Process in Auburn, MA
Once you have these three areas nailed down, you will be able to determine what you can spend on your vehicle. When you’re ready to get the Mazda financing process started, Patrick Mazda in Auburn, MA makes it easy. Just fill out our online application to get pre-approved for your loan. Contact us today to get started!
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