If you’re looking to learn more about Subaru financing, Herb Gordon Subaru is the team you can turn to. We’re dedicated to providing our community with affordable models that they can rely on, and we offer a wide range of financing tools and resources to help you get started, including the following information on down payments.
Use the 20/4/10 Rule
One of the best ways to set your budget, including deciding on your down payment, is to use the 20/4/10 rule. The 20/4/10 rule breaks down like this: Put down 20% of the vehicle’s total cost for the down payment, pay the vehicle off over four years, and make the total costs of vehicle ownership, including car payment, insurance, fuel, and service, no more than 10% of your total monthly income.
The 20/4/10 rule is useful because it can be adjusted to fit your specific budget, so you can take home a car you love without breaking the bank.
Account for Down Payment—and Other Factors
The down payment is very important to consider when it comes to vehicle financing, but it’s not the only factor. You’ll also want to think about term length, and how that translates into monthly vehicle cost, and accrued interest.
The more quickly you pay your vehicle off, the less you’ll pay in interest over time, both because you won’t accrue interest after you own the car and because shorter terms typically have lower interest rates. Putting down a larger down payment can help you to reduce those interest costs.
When you’re ready to begin financing your next Subaru vehicle, come down to Herb Gordon Subaru. Explore our financing tools and resources, like an easy online financing application and payment calculator, and take home the right car at the right price by the end of the day.
