When it comes to RAM financing, the down payment is one of the most important factors to consider. It can be difficult to know where to start, however. Fields Chrysler Jeep® Dodge RAM Glenview takes the guesswork out of vehicle financing, so you can focus on picking out the next great car. Learn top tips for deciding on a down payment today.
What is a Down Payment?
The down payment is the amount of money you give to the dealership the day you take your vehicle home. The more you can put down, the more quickly you’ll be able to pay your vehicle off. That’s because a higher down payment typically means smaller monthly payments and a smaller amount of accrued interest over time. A higher down payment also helps to reduce the risk of becoming upside down on your finances, meaning you owe more on the vehicle than it is worth.
Check Your Credit Score
Before deciding on your vehicle down payment, it’s important to check your credit score. Your credit score tells lenders how reliable you are to lend money to, which is why drivers with higher credit scores have more favorable loan terms available to them. If you have a lower credit score, you may need to put down a higher down payment, to be eligible for a loan.
Use the 20/4/10 Rule
If you don’t know where to start when it comes to your down payment, consider following the 20/4/10 rule. It recommends putting down 20% of the vehicle value as a down payment. It also recommends paying your car off within four years and spending less than 10% of your monthly income on transportation costs.
Begin RAM Financing in Glenview, IL Near Chicago
No matter what your vehicle financing needs may be, you’ll find the support you deserve at Fields Chrysler Jeep Dodge RAM Glenview. We offer tools and resources to help along the way and provide expert support. Learn more about down payments at our Chicagoland dealership today!