A new luxury vehicle can certainly be a big investment. We encourage you to carefully budget for your purchase before you start shopping. The 20/4/10 Rule is a beneficial guideline to utilize if you’re considering Mercedes-Benz financing for a new purchase at Mercedes-Benz of Owings Mills.
What is the 20/4/10 Rule?
The 20/4/10 rule helps you establish a budget for a new vehicle if you’re considering auto financing, as well as parameters for your loan:
- Aim to make a down payment of at least 20 percent
- Limit your loan length to four years or less
- Keep your auto payment and expenses under 10 percent of your monthly take-home pay
How Do I Determine My Auto Payment?
Our virtual payment calculator is a helpful tool to estimate your monthly payment. With it, you can also easily see how factors like a bigger down payment or different loan length can affect your monthly payments. You simply need to plug in the following information for an estimate:
- Vehicle price
- Loan length
- APR
- Down payment
What if These Terms Don’t Work for Me?
While it may be considered a rule, this is truly just a guideline. If you don’t want to put as much money down or prefer a longer loan, that’s definitely an option. However, the final say is determined by the lender, and some may prefer that you meet these specifics.
Apply for Mercedes-Benz Financing Today
When you’re ready to buy a new Mercedes-Benz car or SUV we’re ready to help. We have a streamlined financing process so that we can help you get approved in no time. Stop by Mercedes-Benz of Owings Mills to get started today!
Categories:
Finance
AdChoices