It’s not uncommon for car shoppers to fall in love with a vehicle and then try to devise a budget to pay for it. But this approach often leads to trouble. It’s important to first create a budget and then figure out the vehicle that matches it. The Jaguar finance center at Jaguar Northfield has three numbers to keep in mind to help you do it.
Down Payment
First, you need to think about how much money you have to put towards your vehicle right away. Supplying a good-sized down payment offers a lot of benefits. For one thing, it means that you don’t have to borrow as much money, so there’s not as much to pay back. This can also help lower your monthly payments and reduce the length of your loan. You should aim to put up 20 percent of the sale price, and a trade-in vehicle may help you reach that number.
Monthly Payment
Once you know what your down payment is, you can consider how much you want to pay every month. Another number to focus on is 10. It’s a smart idea not to exceed 10 percent of your income for car expenses. But, in addition to the financing payment, this also needs to include things like gas, maintenance, and insurance.
Loan Term
The last thing to think about is the length of your loan. If you don’t like having debt, you may be considering a short loan term. It should be noted, however, that this will raise the monthly payment quite a bit. A long-term loan will give you more favorable payments, but you will end up paying more in interest. Going with a four-year loan can give you the best of both worlds.
Get Jaguar Finance Advice in Northfield, IL Near Chicago
We understand that financing can be confusing. This is why the financing pros at Jaguar Northfield are ready to assist you. Contact us with any concerns or questions and schedule an appointment today!
