Are you thinking about financing your next vehicle? As you review your Toyota financing options, you have a few things to consider such as your budget, your down payment, and more. Our experts at Sansone Toyota are diving into the details of the 20/4/10 rule to help you get started.
What is the 20/4/10 Rule For?
Your budget is a huge factor when buying a new car and it can be difficult to know where to begin. You want to make sure you aren’t stretching yourself too thin. The 20/4/10 rule is a guideline designed to help you plan for your new purchase and determine how much you’ll need to save ahead of time.
What Do the Numbers Stand For?
Here’s an outline of the 20/4/10 rule:
- Aim to make a down payment of at least 20 percent
- Plan for a four-year period for your loan length
- Keep your monthly auto expenses (car payment, insurance, maintenance, etc) under 10 percent of your monthly income
Do I Have to Follow the Rule?
No, the rule is not a must, it’s simply a guideline. It’s important to see what you feel comfortable paying upfront. You also want to make sure that your income will cover the anticipated auto payment and expenses, which you can do through our virtual payment calculator.
What if My Payments are Too High?
You still have options if you want a lower monthly payment:
- Choose a pre-owned model
- Make a larger down payment
- Consider a longer loan length
- Try to raise your credit score for better loan rates
Get Approved for Toyota Financing Today
At Sansone Toyota, we pride ourselves on a quick and streamlined financing process. In fact, we can get you approved for financing in just a few simple steps. Stop by to get started today!
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