Buying a Ford vehicle is a significant purchase, whether it’s new or used. This is why it pays (literally) to have a plan in place for Ford financing. Following the 20-4-10 rule is a bright idea; here, Lester Glenn Ford goes over what it entails.
20 – Down Payment
Your down payment is the first thing to focus on when buying a car. This is how much you can supply right away. You should aim for 20 percent of the purchase price, as this will reduce the amount you will need to borrow immensely. Using a trade-in vehicle can help you reach or even exceed this number.
4 – Loan Term
You will be able to decide the length of your loan, and these typically are offered from two years to seven years. It’s important to remember that the shorter the loan term, the higher your monthly payments will be. Conversely, a longer term lowers the monthly amount, but you will pay more interest. Choosing a four-year term is typically the best way to strike a balance between those extremes.
10 – Monthly Payment
Finally, you must consider how much you can afford to pay monthly. The amount you spend on your car shouldn’t exceed 10 percent of your income. This doesn’t just include the vehicle payment, however. You should also factor in fuel, maintenance, and insurance.
Start the Ford Financing Process in Ocean Township, NJ
Once you have your finances in order, it’s time to start the financing process. Our Ford dealership in Ocean Township, NJ, aims to make this as simple as possible. To get pre-approved for a loan, you only need to fill out our online application. Call, click, or visit today to learn more!
