When it comes to Lexus financial services, Fields Lexus of Glenview has your back. We believe the vehicle financing process should be smooth and easy, which is why we’re sharing everything you need to know, including best practices for putting down money on your next car.
Why is a Down Payment Important?
The down payment is the amount of money you put down, or give to the dealership, the day you take your vehicle home. The more money you can put down on the car, the less you’ll have to spend on your monthly vehicle payments, and the more quickly you’ll be able to pay your loan off. This is especially important because it can save you a significant amount of money on accrued interest costs.
How Does Credit Score Affect My Down Payment?
Your credit score plays an important role in the vehicle financing process since it tells the lender how reliable you are as a borrower. If you don’t have perfect credit, don’t worry. You’ll still have loan options available to you, but you’ll probably need to submit a larger down payment. You will likely need to pay the loan back more quickly, and the more money you put down, the easier that will be.
How Much Should I Use as a Down Payment?
An excellent way to determine your down payment is to use the 20/4/10 rule. This guideline recommends that you put down 20% of the vehicle cost, pay the car off in four years, and spend no more than 10% of your monthly income on transportation costs.
Begin the Lexus Financing Process in Glenview, IL Near Chicago
No matter what your vehicle financing needs may be, Fields Lexus of Glenview is here to help. Visit our dealership to learn more about the down payment process, and to take home the car you love at the price you need today!