There are many reasons to consider Honda used cars when the time comes for your next vehicle, including the savings. However, the question remains: how much money should you budget for a down payment on your next used Honda vehicle? Honda Van Nuys is here to help you on every step of the Honda financing process.
Check Your Credit Score
One of the most important steps you can take when financing your Honda vehicle is checking your credit. Your credit score tells the lender how reliable you are to lend money to, which is why drivers with higher credit scores have access to more favorable terms, like longer term lengths and lower interest rates. Check your credit early on to know what kind of vehicles will be available to you.
Set a Budget
The higher your down payment, the less you’ll pay in interest over time, and the quicker you’ll be able to pay your loan off. You want to set a budget for yourself so you know how much you have to spend, and then work backward to determine what you can use for the down payment.
Use the 20/4/10 Rule
If you’re just not sure where to start when it comes to used Honda financing, consider the 20/4/10 rule. With this guideline, you’ll want to put down 20% of the vehicle’s cost for the down payment and pay the car off in four years. You’ll also want to spend less than 10% of your monthly income on transportation costs, including insurance, monthly payments, gas, and service.
Finance Used Honda Vehicles in Van Nuys, CA
No matter what your vehicle financing needs may be, Honda Van Nuys is here to help. Learn about best practices for setting a budget and determining a down payment, and take home the right vehicle at the right price today.
