Compared to taking a test drive and picking out features, no one’s excited about finding a financing plan. However, finding a plan that works for you is an essential part of Hyundai financing, and putting the optimal amount down is easier than you think. Just follow these quick tips from us at Jenkins Hyundai of Ocala, and we’ll find a workable plan in no time.
The 20/4/10 Rule
If you’re not sure how much to put down, the 20/4/10 rule is a great way to quickly calculate the right number. You should try to put at least 20 percent down on a new car, as it gives you a major head start on depreciation and other financing issues. Try to find a car with a financing plan that meets all three criteria: at least 20 percent down, a term of four years or less, and with no more than 10 percent of your budget going to transportation costs.
Is the Rule the Same for Used Cars?
With a used car, you can afford to put down as little as 10 percent of the cost. That’s because used cars have already been on the road for years, which means you don’t need to keep ahead of depreciation. Just like new car financing, though, with a bigger down payment, you’ll save more over the course of the loan.
Avoiding Being Upside-Down
Down payments help you avoid being “upside-down”, a state where you owe more on your car than it’s worth. If you can’t make a 20 percent down payment when you buy your car, you can still make bigger loan payments to stay ahead of depreciation. When you’re upside-down, you may end up with loan payments even after a car is totaled or stolen, so it’s a good idea to avoid it.
Apply for Hyundai Financing in Ocala, FL
Our expert team here at Jenkins Hyundai of Ocala makes the ins and outs of financing straightforward, quick, and easy. Stop by today and finance your next new Hyundai car at our Ocala Hyundai dealership. Explore our lineup, apply for financing, and take a test drive today!
