It pays to go in with a plan if you’re planning to finance a Honda car. In addition to finding the right vehicle, this should involve creating a thorough budget. Following the 20/4/10 rule for Honda financing is a wise idea.
Down Payment
While you can generally put whatever you want down for a new Honda car, you should aim for 20 percent. Because this immediately trims a good chunk of the sale price, you won’t have to borrow as much money to pay off the rest. This can result in smaller monthly payments.
Loan Term
You’ll also have your choice of loan term, and four years is typically ideal. While you may want to pay it off sooner, a shorter loan term will result in more significant monthly payments. The longer your loan term, the more you’ll pay in interest.
Monthly Payment
It’s important to come up with a monthly payment that you’re comfortable with. This shouldn’t be more than 10 percent of your total income. Calculate your net income and current expenses, and you can see what this number will be. Don’t just think about the car payments; things like gas and insurance also need to be factored in.
Make the Best Financing Choices at Honda Van Nuys
At Honda Van Nuys, we want to help our customers find a great car that fits their budget. Contact us if you have any questions about financing or our new or pre-owned vehicles. You can also fill out our online financing application that will give you pre-approved for a loan.
