Are you interested in buying a MINI car in 2023? Chances are good that you will be financing your purchase, and to help ensure that this is affordable, there’s an important rule to follow. Learn about the 20/4/10 rule and what it means for your MINI finance process.
Down Payment
The first thing to think about with your purchase is your down payment. Ideally, you’ll want to put up 20 percent of the sale price. When you do this, you won’t have to borrow nearly as much from a lender, which could result in smaller monthly payments, as well as a shorter loan term.
Loan Term
Speaking of that loan term, how long should it be? Most people are in two schools of thought about this. Some folks want to pay it off as quickly as possible so they choose a very short-term loan of a year or two. Others want small monthly payments so they go with a long-term loan of six or more years. The smartest move is to go with a four-year loan. This helps keep your payments reasonable and lets you pay off the loan in a timely manner.
Monthly Payments
Finally, you need to think about your monthly payments, and you should start by looking at everything you pay for every month. This may include rent or mortgage, bills, food, and all else. When it comes to car expenses, you should try not to exceed 10 percent of your income. And in addition to the payments, this encompasses insurance, gas, and maintenance.
Visit MINI of Glencoe for More MINI Finance Information
If you have any questions about financing, get in touch with MINI of Glencoe. You can also start the process now by filling out our online application.
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