Mazda financing

Understanding the 20/4/10 MAZDA Financing Rule

Considering financing your next purchase at Berkshire Mazda? The 20/4/10 rule is designed to help ensure you are making a smart purchase (and getting the best rates) when considering Mazda financing.

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What is the 20/4/10 MAZDA Financing Rule?

The 20/4/10 rule is a guideline for buyers to use when financing a new vehicle. These are the parameters experts recommend you stick to.

  • 20 – your down payment should be at least 20% of your total investment
  • 4 – your term should be four years or less
  • 10 – your total auto expenses each month should be less than 10% of your monthly income

Why Do I Need to Follow it?

Financing helps buyers get into a vehicle that they may not have been able to afford without an auto loan. Sometimes, buyers tend to spend more than they should when they are making comfortable monthly payments instead of draining their savings.

With the 20/4/10 rule, you can better understand your buying power and set a realistic budget for your next purchase.

What if I Can’t Meet the Requirements?

While these guidelines are set to help you make the smartest buying decision, they are by no means a must-do. Not all buyers are the same. And, unfortunately, sometimes you need a vehicle before you’ve saved up as much as you’d like.

There are also buyers that simply prefer to spend less each month and stretch out their loans, so they aren’t stretching themselves too thin. There are certainly lots of exceptions to this rule.

The financial experts at our Mazda dealership near Lee, MA are happy to discuss your financing options with you and answer any questions you may have. We want to ensure you’re confident about your purchase so don’t hesitate to reach out today!