It is amazing how you can spot a car that you would love to own and then can’t get it out of your mind. There is absolutely nothing wrong with that, many people start their car search exactly like that. However, before you turn your dream into a reality the first thing you have to do is determine if you can afford it. Before you head off to your Mazda dealer in New Lennox there are a couple things you need to know, things that will help you determine the price range you can work in.
The down payment: The down payment is what you can afford up front; it can be all cash or cash plus your old car as a trade in.
The monthly payment: If you cannot pay in cash you will have to arrange financing, you must know how much you can afford to pay every month for the duration of the loan.
Try to make the biggest down payment possible, you can easily find low down payment loans but to minimize the cost of the loan, try for 20 percent if you can. The higher the down payment, the less you have to borrow which results in lower monthly payments and less interest over the term of the loan.
Various credit agencies that are deeply involved in auto loans suggest that the monthly debt payments you make should be no more than 36 percent. Knowing this, it is simple to determine how much you can comfortably pay for your new car.
* It is simple to determine what 36 percent of your gross income is
* Total all your monthly obligations; rent, credit card bills, utilities, etc
* Subtract your obligations from your discounted gross income and you have what you can afford to spend on a new car
Once you know how much you can spend, your Mazda dealer in New Lennox can work closely with you to truly turn your dream into reality.
Your Mazda dealer in New Lennox can not only help you find the new Mazda of your dreams, he can help you arrange affordable finance.