The Genesis finance journey may seem overwhelming to first timers, but our team at Genesis of the North Shore has your back. We’re dedicated to helping drivers pick out the right vehicle within their budget, which is why we provide financing tools and resources you can depend on—including support with the 20/4/10 guideline. Get started at our dealership today.
20 Percent Down Payment
Your down payment is one of the most important factors to consider when purchasing a vehicle. The more money you are able to put down, or give to the dealership, on the day of purchase, the more you’ll save on accrued interest costs over time. The 20/4/10 rule recommends putting down 20 percent of the total vehicle value.
Four-Year Term
Another factor to consider when financing your vehicle is term length. A longer term length will allow you to pay less each month, which will put more vehicles into your budget, but will typically have a higher rate of interest than a shorter term length. With the 20/4/10 rule, you’ll want to have your vehicle paid off within four years of purchase.
10 Percent of Monthly Income on Vehicle Costs
Additionally, you’ll want to consider all your vehicle ownership costs. That’s where the 10 in the 20/4/10 rule comes into play. It recommends that you spend no more than 10 percent of your monthly income on transportation costs, including fuel, insurance, and loan payment.
Take the First Step Toward Genesis Finance in Hicksville, NY
No matter what your financing needs might be, you’ll find the support you deserve at Genesis of the North Shore. From an online finance application to vehicle specials and deals, we have everything you need to pick out the car you love. See how the 20/4/10 rule can work for your new vehicle purchasing needs.
