After you’ve picked out your favorite luxury model, you’ll need to decide how much to put down toward your Acura financing offer. Not everyone has a lot of cash lying around, so the traditional down payment of 10 to 20 percent may seem daunting. To help you better understand your options and make the right decision, here’s some helpful information from your friends at MotorWorld Acura.
Your Down Payment’s Effect on Your Acura Financing Package
The bigger your down payment, the lower your monthly payments will be throughout the life of your Acura financing package. A larger down payment also means you’ll pay less interest during the loan since your principal will be lower. A smaller down payment might mean a longer and pricier loan—however, when you have more cash available, you can increase your monthly payments and pay off the loan more aggressively.
The 20/4/10 Rule: The Automotive Industry Standard
Many drivers follow the 20/4/10 rule when they buy a car. This means they’ll budget for a 20% down payment, a four-year loan, and their vehicle expenses cost no more than 10% of their income. When you outline your car-buying budget, be sure to include estimated registration, maintenance, and fuel costs. If you worry about hitting this guideline, we encourage you to consider trading in your current vehicle; it’s a convenient and effective way to further pad your down payment and reap all the benefits that come with that.
We’re the Unmatched Experts in Acura Financing in Wilkes-Barre, PA
We proudly offer Acura financing terms for drivers with all credit scores and histories. We believe that everyone deserves to drive the very best vehicle, and we’ll help you with custom loan terms that work for your budget. Visit our Acura dealership in Wilkes-Barre, PA, today!