Because buying a car may involve a lot of money, putting together a comprehensive budget is one of the first things shoppers should do. Fortunately, this doesn’t have to be very difficult, as our Nissan finance department has a rule to follow that makes it easy.
20 – The Down Payment
When financing a vehicle, many people are confused about how much they should include for a down payment. Putting up 20 percent of the purchase price is a smart idea.
When that percentage is immediately cut off, this shrinks the amount you will need to borrow substantially. The result can be smaller monthly payments and a shorter loan term.
4 – The Loan Term
Speaking of loan term, you should aim for four years. Spreading out the payments over four years will give you very reasonable payments each month.
If you go lower than four years, this will hike the payments up quite a bit. Higher than four, and you will end up having to pay more in interest.
10 – Your Monthly Income
When thinking about how much you can afford to spend each month on your car, consider your income. You don’t want to go over 10 percent of what you bring in. Additionally, don’t just focus on the car payment, as this should also include gas, insurance, and other vehicle expenses.
Make the Right Financing Choices at Bedford Nissan
At Bedford Nissan, we want our customers to get a great car that fits their budget. If you have questions about financing, feel free to contact us. You can also start the process by filling out our online application that will get you pre-approved for a loan.
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