There are an incredible number of factors to consider before you purchase a new vehicle, and you always want to ensure you’re making the best financial decision. Our Mazda finance experts at Route 9 Mazda have a few tips to help you budget for your purchase.
Assess Your Existing Expenses
Before you purchase a new vehicle, it’s important to look at your existing expenses. If possible, you should keep your debt-to-income ratio under 36 percent. Calculating how much wiggle room this gives you will provide you with a good starting point for your new vehicle.
Set a Budget
Even if your income allows for a certain amount, though, that doesn’t mean that’s how much you should spend. Many experts agree that you spend less than 10 to 20 percent of your take-home pay on your auto payment and expenses. This includes your car payment, insurance, maintenance costs, and fuel.
Check Your Credit
Your credit score can be a big factor when it comes to Mazda financing. A great score can attract more lenders, which can get you better offers with better terms and help you save substantially. A low score can present you as a risk, making it harder to secure financing and land you a high interest rate.
Utilize an Auto Payment Calculator
An auto payment calculator can provide a quick payment estimate for any of our new Mazda models. You can also adjust the various factors to see how your payment will be affected. If possible, aim to keep your loan term under four years and plan to make a down payment of at least 20 percent.
Start Your MAZDA Finance Journey
When you’re ready to proceed, we’re ready to help. Our Poughkeepsie, NY, dealership offers a streamlined Mazda financing process that helps you get approved in no time at all. Visit Route 9 Mazda to get started today!
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