Buying a car is exciting, but it’s important not to ignore the more logistical aspects, which include financing. Planning ahead is the best way to avoid mistakes. Fields Cadillac St. Augustine goes over three common Cadillac finance errors and what you can do to prevent them from happening.
Putting Up Too Much (or Too Little) for a Down Payment
Getting your down payment right is vital, as this is a major financing factor. The more money you can put up immediately, the better off you will be. However, you don’t want to overextend yourself with too large of a down payment. On the other hand, supplying a small amount means you will need to borrow more money. Aim for about 20 percent of the purchase price.
Choosing the Wrong Loan Term
The loan term is something else that requires a lot of consideration. The shorter this is, the higher your monthly payments will be. The longer your loan term, the more interest you will end up paying. This is why it’s a smart idea to go with a loan of around four years.
Spending Too Much Every Month
Another mistake people can make when paying for a car is creating monthly payments that are too high. A good rule of thumb to follow is to not exceed 10 percent of your income. If, for example, you make $5,000 every month, you should try not to spend more than $500 on all car-related expenses.
Make Smart Cadillac Financing Choices in St. Augustine, FL
Being proactive about financing is something you will thank yourself for later. If you have any questions, get in touch with Fields Cadillac St. Augustine. You can also begin the Cadillac financing process now by filling out our online application.
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