Mazda financing can be a little daunting for first-time buyers. The important thing is to start the process understanding how everything works and what your options are. This guide from Heritage Mazda Catonsville explains what you need to know to make smart decisions.
How Financing Works
Financing may sound complicated, but it’s simpler than it seems. You apply for a loan and pay it (and its interest) over time, building equity and eventually taking full ownership of the vehicle.
Know the Role Your Credit Plays in Financing
Many first-time buyers are hesitant to seek a loan for a vehicle because of less-than-ideal credit. While it’s true that your credit score is a prime determinant of your eligibility, it’s not the only one. Other factors your lender will consider include your income, employment, and how much money you’re putting down, especially as a percentage of the total.
Follow the 20-4-10 Rule
If you keep these three numbers in mind, you can set yourself up for success with financing:
- 20: The recommended percentage to supply for your down payment is 20%. This will help trim your loan by thousands of dollars and potentially shrink the term so you won’t have to pay as much in interest.
- 4: Consider a loan term of four years. Any shorter and your monthly payments will balloon. Any longer, and you will end up having to pay more interest.
- 10: Try not to exceed 10% of your total income for car expenses each month. In addition to the loan, make sure you leave enough for fuel, service, and insurance.
Start the MAZDA Financing Process Now
If you’re ready to get started with your first lease or loan, Heritage Mazda Catonsville aims to make it as easy as possible. Visit our dealership or apply online for a quick pre-approval. If you have questions, we encourage you to contact us.
