When preparing to buy a car, one of the first things to think about is your finances. You need to find a vehicle that fits your budget, and our Cadillac financial services experts at Fields Cadillac St. Augustine has three key areas you’ll want to focus on.
Down Payment
If you have enough money to buy your vehicle outright, you won’t have to worry about a down payment or anything else on this list. However, if you will be financing, you need to think about the money you can put up right away. Going with a 20 percent down payment is a smart idea, as it lowers your loan amount and can shrink your monthly payments.
Loan Term
The next thing to consider is how long you want your loan term to be. It’s a good idea to pick a term that’s not too long or too short. It’s important to remember that the shorter the term, the higher your monthly payments will be. If you go with one that’s longer, this will result in having to pay additional interest.
Monthly Payment
Finally, you need to think about what you can reasonably afford to pay every month. A smart idea is to keep the number 10 in mind. You shouldn’t exceed 10 percent of your monthly income for all car-related expenses. This includes insurance, maintenance, and gas, along with those payments.
Visit the Financial Department at Fields Cadillac St. Augustine
If you need help budgeting for your car, Fields Cadillac St. Augustine can help. Get in touch to talk to one of our financing professionals. You can also start the financing process by filling out our online application.
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